22nd Apr 2025 06:54
(Alliance News) - Stocks in London are set to open higher on Tuesday, as gold hits record highs following the long UK bank holiday weekend and US President Donald Trump's attacks on the Federal Reserve chair.
IG says futures indicate the FTSE 100 to open up 56.8 points, 0.7%, at 8,332.46 on Tuesday. The index of London large-caps closed up just 0.06 points at 8,275.66 on Thursday.
Gold was quoted higher at USD3,481.19 an ounce early Tuesday, from USD3,296.43 on Thursday. The yellow metal was up as high as USD3,494.89 earlier on Tuesday morning.
In the US on Monday, Wall Street ended lower, with the Dow Jones Industrial Average down 2.5%, the S&P 500 fading 2.4% and the Nasdaq Composite 2.6% lower.
US President Donald Trump and his administration are considering whether dismissing independent Federal Reserve Chair Jerome Powell is an option, his top economic aide said on Friday.
Trump previously insisted that he could force out the Federal Reserve leader, lashing out after Powell warned of tariffs-fuelled inflation.
The US president does not have direct authority to fire Federal Reserve governors, but Trump could initiate a lengthy process to attempt to unseat Powell by proving there was "cause" to do so.
"Though Powell's departure before the end of his term next May remains a slim possibility, even the mere mention of such a prospect has been more than enough to stir even greater fear among market participants, who were already taking a dim view of the dollar's haven, and reserve, status, given the frankly shambolic nature in which the White House have been conducting themselves of late," commented Pepperstone analyst Michael Brown.
"Incidentally, though, if Powell were to leave his post prematurely, the trade is probably the easiest call I’ll ever have to make – sell equities, sell Treasuries, sell the USD, buy vol, and don’t look back.
"While we're, clearly, not at that stage yet, market participants are, logically, continuing to trim their exposure to US assets, with little-to-no signs emerging of the Trump Admin changing course, on trade, attacks on the Fed, or anything else besides."
Sterling was quoted higher at USD1.3413 early Tuesday, from USD1.3259 at the London equities close on Thursday. The euro also traded up at USD1.1539 early Tuesday, against USD1.1374 late Thursday.
Against the yen, the dollar was quoted lower at JPY140.01 versus JPY142.19.
In Asia on Tuesday, the Nikkei 225 index in Tokyo was down 0.2%. In China, the Shanghai Composite climbed 0.5%, while the Hang Seng index in Hong Kong was 0.6% higher. The S&P/ASX 200 in Sydney closed up 0.7%.
The US on Monday announced its intention to impose tariffs of up to 3,521% on solar panels from Southeast Asia, a move aimed at countering alleged Chinese subsidies and dumping in the sector.
The tariffs on companies from Cambodia, Thailand, Malaysia and Vietnam will still need to be ratified at a meeting of the International Trade Commission in June.
Brent oil was trading down at USD66.61 a barrel early Tuesday, compared to USD67.52 late Thursday.
In Tuesday's corporate calendar, a trading statement from City of London Investment Group.
In the economic calendar on Tuesday, eurozone consumer confidence and US Redbook index.
By Emily Parsons, Alliance News reporter
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