16th Apr 2025 06:53
(Alliance News) - Stocks in London are set to open lower on Wednesday, amid the threat of US tariffs on minerals used in products like smartphones.
Without naming any other countries, Trump's order for a probe says that the US is dependent on foreign sources that "are at risk of serious, sustained, and long-term supply chain shocks". The imports targeted include so-called critical minerals like cobalt, lithium and nickel, rare-earth elements, as well as products that partly require these resources, such as electric vehicles and batteries.
"Markets appear becalmed, for the time being, with news flow on the tariff front having slowed somewhat in recent sessions, allowing both implied and realised vol to subside as well, and generally calmer tones to prevail across the board...That said, it is quite obviously too early to sit here and sound the 'all clear'," Pepperstone's Michael Brown commented.
The UK consumer price index reading is due out at 0700 BST. FXStreet-cited consensus forecasts annual inflation slowing to 2.7% in March, with the monthly reading unchanged at 0.4%.
IG says futures indicate the FTSE 100 to open down 54.0 points, 0.7%, on Wednesday. The index of London large-caps closed up 1.4% at 8,249.12 on Tuesday.
Sterling was quoted at USD1.3263 early Wednesday, higher than USD1.3229 at the London equities close on Tuesday.
The euro traded at USD1.1351 early Wednesday, higher than USD1.1303 late Tuesday. Against the yen, the dollar was quoted lower at JPY142.34 versus JPY143.01.
In the US on Tuesday, Wall Street ended lower, with the Dow Jones Industrial Average down 0.4%, the S&P 500 down 0.2X% and the Nasdaq Composite down 8.32 points.
In Asia on Wednesday, the Nikkei 225 index in Tokyo was down 1.7%. In China, the Shanghai Composite was down 0.8%, while the Hang Seng index in Hong Kong was down 2.7%. The S&P/ASX 200 in Sydney closed marginally lower.
China's economy grew at a greater-than-expected rate in the first quarter, according to figures from the National Bureau of Statistics.
China's gross domestic product increased 5.4% on-year in the first quarter of 2025, unchanged from the previous quarter and ahead of the 5.1% increase expected according to FXStreet-cited consensus forecasts.
Gold was quoted at USD3,289.63 an ounce early Wednesday, higher than USD3,223.88 on Tuesday.
Brent oil was trading at USD63.89 a barrel early Wednesday, lower than USD64.39 late Tuesday.
In Wednesday's corporate calendar, there are trading updates from Antofagasta, Barratt Redrow and Rio Tinto.
In the economic calendar on Wednesday, as well as the UK read there is eurozone CPI, plus the Canadian interest rate call.
By Emma Curzon, Alliance News reporter
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