24th Jul 2025 06:47
(Alliance News) - Stocks in London are set to open higher on Thursday, as US President Donald Trump considers lower tariffs on European goods if the EU opens its doors further to US firms.
IG says futures indicate the FTSE 100 to open up 41.5 points, 0.5%, at 9,102.99 on Thursday. The index of London large-caps closed up 37.68 points, 0.4%, at 9,061.49 on Wednesday.
Sterling was quoted at USD1.3580 early Thursday, up from USD1.3571 at the London equities close on Wednesday.
Keir Starmer and India's Narendra Modi are set to sign off on a trade deal worth GBP6 billion in investment for the British economy.
The UK prime minister and his Indian counterpart also agreed ahead of their meeting on Thursday to ramp up joint efforts to tackle illegal migration and organised crime.
The UK-India trade deal is understood to be the largest of its kind for its economic impact on Britain.
It will see tariffs on an array of British goods reduced from an average of 15% to 3%, with the aim of boosting the GBP11 billion of imports into the south Asian nation.
The euro traded at USD1.1777 early Thursday, higher than USD1.1737 late Wednesday. Against the yen, the dollar was quoted down at JPY146.00 versus JPY146.33.
UK consumer morale deteriorated in July, BRC-Opinium data showed, dented by fears over the rising cost of living.
Expectations for the state of the economy fell to minus 33 in July from minus 28 in June, while expectations for the personal financial situation of those surveyed slipped to minus 7 in July from minus 5 in June.
British Retail Consortium Chief Executive Helen Dickinson said: "With the UK economy shrinking for the second consecutive month, it is little surprise that consumer confidence fell in July. Rising inflation, particularly for food, has put more pressure on personal finances, increasing the cost of living."
Meanwhile, UK house price growth expectations have been reduced for 2025 amid wider global uncertainties, according to a forecast from property firm Savills. But the potential for house price growth over the next five years has been upgraded.
Savills expects to see house prices across the UK to rise by 1.0% on average this year and by 25% over the next five years. Previously, it had forecast house prices to increase by 4.0% this year, with a 23% rise over the next five years.
In the US on Wednesday, Wall Street ended higher, with the Dow Jones Industrial Average 1.1% higher, the S&P 500 up 0.8% and the Nasdaq Composite rising 0.6%.
US President Donald Trump said on Wednesday that the US is prepared to lower threatened tariffs on European goods if the EU opens its market further to US companies.
"If they agree to open up the union to American businesses, then we will let them pay a lower tariff," Trump said at an artificial intelligence-focused event, referring to the ongoing negotiations with the EU. He added that serious talks were currently underway.
The US has been negotiating with the EU for weeks on a trade deal to prevent US tariffs of 30% on imports from the bloc from taking effect on August 1.
Separately, German Chancellor Friedrich Merz and French President Emmanuel Macron presented a united front during talks in Berlin on Wednesday, signalling that the EU is prepared to respond if negotiations with Washington fail.
In Asia on Thursday, the Nikkei 225 index in Tokyo advanced 1.5%. In China, the Shanghai Composite rose 0.7%, while the Hang Seng index in Hong Kong improved 0.6%. The S&P/ASX 200 in Sydney faded 0.3%.
Gold was quoted lower at USD3,381.67 an ounce early Thursday, against USD3,412.38 on Wednesday.
Brent oil was trading at USD68.74 a barrel early Thursday, higher than USD68.24 late Wednesday.
In Thursday's corporate calendar, half-year results from lender Lloyds Banking Group and consumer products group Reckitt Benckiser and trading statements from miner Anglo American and telecommunication providers BT and Vodafone.
In the economic calendar on Thursday, the eurozone interest rate decision, Canadian retail sales data, US initial weekly jobless claims figures, plus a slew of flash composite PMI reports.
By Emily Parsons, Alliance News reporter
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