23rd Jul 2025 06:49
(Alliance News) - Stocks in London are set to open higher on Wednesday, as new data shows demand for UK retail investment is on the rise and US President Donald Trump agrees a major trade deal with Japan.
IG says futures indicate the FTSE 100 to open up 48.8 points, 0.5% at 9,072.61 on Wednesday. The index of London large-caps closed up 10.82 points, 0.1%, at 9,023.81 on Tuesday.
Sterling was quoted at USD1.3528 early Wednesday, higher than USD1.3508 at the London equities close on Tuesday.
The euro traded at USD1.1734 early Wednesday, broadly flat compared to USD1.1735 late Tuesday. Against the yen, the dollar was quoted higher at JPY147.00 versus JPY146.49.
Demand to invest in the UK's retail property sector picked up in the second quarter, with interest rate cuts aiding investment, Rightmove said on Wednesday.
The property portal's latest insights revealed that demand to invest in the retail property sector is up 35% in the second quarter versus a year ago. The company said this was measured through enquiries to commercial agents regarding listings on Rightmove.
High-street retail investment demand is up 56%, said Rightmove, with this figure at its highest level since 2021. This demand makes up a significant proportion of the overall retail sector.
This change marks a notable shift for retail investment, it added, with demand having been down 15% last year when compared to the year prior.
According to Rightmove, interest rate cuts are helping to drive this "bounce back" which is occurring across both retail and commercial investment.
In the US on Tuesday, Wall Street ended higher, with the Dow Jones Industrial Average rising 0.4%, the S&P 500 up 0.1% and the Nasdaq Composite gaining 0.4%.
The yield on the US 10-year Treasury was quoted at 4.37%, widening from 4.34%. The yield on the US 30-year Treasury was quoted at 4.94%, stretching from 4.91%.
Trump said the US has agreed to a major trade deal with Japan that includes a 15% tariff on its exports.
Trump explained that under the deal: "Japan will invest, at my direction, USD550 Billion Dollars into the US, which will receive 90% of the Profits."
Japanese Prime Minister Shigeru Ishiba said that he needed to examine the deal before commenting, and later Tokyo's trade envoy to the US confirmed that the deal does not include defence spending or steel and aluminium.
The breakthrough makes Japan one of five countries to have signed an agreement – along with Britain, Vietnam, Indonesia and the Philippines – after Trump promised in April he would get "90 deals in 90 days".
In Asia on Wednesday, the Nikkei 225 index in Tokyo improved 3.6%. In China, the Shanghai Composite rose 0.7%, while the Hang Seng index in Hong Kong advanced 1.4%. The S&P/ASX 200 in Sydney was 0.8% higher.
Gold was quoted at USD3,421.27 an ounce early Wednesday, lower than USD3,426.29 on Tuesday.
Brent oil was trading at USD68.88 a barrel early Wednesday, higher than USD68.30 late Tuesday.
In Wednesday's corporate calendar, trading statements from miner Fresnillo and pub operator JD Wetherspoon and half-year results from international events, digital services and academic research group, Informa.
In the economic calendar on Wednesday, eurozone consumer confidence figures and US existing home sales data.
By Emily Parsons, Alliance News reporter
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