4th Aug 2025 06:52
(Alliance News) - London's FTSE 100 is set to open higher on Monday, as US tariffs look set to hurt exports for small UK businesses and the US mulls a potential extension of the tariff pause with China.
IG says futures indicate the FTSE 100 to open up 43.2 points, 0.5%, at 9,111.78 on Monday. The index of London large-caps closed down 64.23 points, 0.7%, at 9,068.58 on Friday.
Sterling was quoted at USD1.3276 early Monday, higher than USD1.3247 at the London equities close on Friday.
The euro traded at USD1.1572 early Monday, higher than USD1.1538 late Friday. Against the yen, the dollar was quoted down at JPY147.82 versus JPY148.12.
Trade tariffs imposed by US President Donald Trump have affected the willingness of smaller UK companies to export, research suggests.
A survey of more than 500 owners of small and medium-sized businesses found over half say the tariffs have reduced their willingness to export. SME lender iwoca said its study also indicates one in seven firms blame the tariffs for not exporting.
In the US on Friday, Wall Street ended lower, with the Dow Jones Industrial Average fading 1.2%, the S&P 500 slipping 1.6% and the Nasdaq Composite falling 2.2%.
New US tariff rates are "pretty much set" with little immediate room for negotiation, Trade Representative Jamieson Greer said in remarks aired Sunday.
"A lot of these are set rates pursuant to deals. Some of these deals are announced, some are not, others depend on the level of the trade deficit or surplus we may have with the country," Greer said.
The yield on the US 10-year Treasury was at 4.26%, widened from 4.24%. The yield on the US 30-year Treasury was at 4.86%, stretched from 4.81%.
The US is aiming for a possible extension of the tariff pause with China, Greer added.
Confronted by a CBS News journalist with claims from the Chinese side that the current deadline of August 12 would be postponed, Greer said: "That's something we're working toward."
Greer said technical issues were being addressed and discussions were ongoing with President Donald Trump. "I think it's going in a positive direction," Greer commented.
While he did not want to pre-empt Trump, Greer stated that he did not believe anyone wanted tariffs to rise back above 80%.
In Asia on Monday, the Nikkei 225 index in Tokyo shed 1.5%. In China, the Shanghai Composite rose 0.2%, while the Hang Seng index in Hong Kong gained 0.6%. The S&P/ASX 200 in Sydney lost 0.1%.
Eight Opec+ countries said they will increase production by 547,000 barrels a day in a move which analysts say aims to regain market share amid resilient crude prices.
"The eight participating countries will implement a production adjustment of 547,000 barrels per day in September 2025 from August 2025 required production level," read the statement agreed by Saudi Arabia, Russia, Iraq, the UAE, Kuwait, Kazakhstan, Algeria, and Oman.
Brent oil was trading at USD69.46 a barrel early Monday, lower than USD69.78 late Friday. Gold was quoted at USD3,356.32 an ounce early Monday, higher than USD3,349.92 on Friday.
In Monday's corporate calendar, half-year results from shipping and offshore services provider Clarkson.
In the economic calendar on Monday, US factory orders data.
By Emily Parsons, Alliance News reporter
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