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LONDON MARKET EARLY CALL: Stocks down as Trump picks send "chills"

12th Nov 2024 07:01

(Alliance News) - Stocks in London are set to open lower on Tuesday, ahead of UK unemployment data and a CPI reading from Germany.

"On the data front, this morning's UK jobs figures are the highlight, though the data continues to come with a 'health warning' given the ONS' continued inability to produce an accurate assessment of UK employment conditions," explained Pepperstone's Michael Brown. "That said, unemployment is seen rising 0.1pp to 4.1% in the three months to September, while overall earnings growth should hold roughly steady, at 3.9% YoY over the same period.

"The report's policy implications, though, are likely to be almost non-existent."

Meanwhile, Stephen Innes of SPI commented: "The latest moves from Trump's camp, especially with China hawks joining his inner circle, are sending chills through the markets...And with whispers of his "Tariff Titan" trade czar making a comeback, markets are buzzing with speculation that tariffs could be hitting sooner than anyone expected, leaving traders scrambling to position themselves."

IG says futures indicate the FTSE 100 to open down 39.9 points, 0.5%, at 8,085.29 on Tuesday. The index of London large-caps closed up 0.7% on Monday.

Sterling was quoted at USD1.2816 early Tuesday, lower than USD1.2875 at the London equities close on Monday.

The euro traded at USD1.0633 early Tuesday, lower than USD1.0654 late Monday. Against the yen, the dollar was quoted slightly down at JPY153.78 versus JPY153.81.

In the US on Monday, Wall Street ended higher, with the Dow Jones Industrial Average up 0.7%, the S&P 500 up 0.1% and the Nasdaq Composite up 0.1%.

In Asia on Tuesday, the Nikkei 225 index in Tokyo was down 0.4%. In China, the Shanghai Composite was down 1.5%, while the Hang Seng index in Hong Kong was down 3.1%. The S&P/ASX 200 in Sydney closed down 0.1%.

"If Trump's team decides to pull no punches, rallying allies (an easy pitch, especially with the EU) to cut down on Chinese imports, clamp down on the yuan, and slap sanctions on any state-owned enterprise funnelling dual-use tech to Russia, Beijing could face serious trouble," Innes warned. "With unrest simmering back home, China's last need is an export crisis courtesy of a newly emboldened US."

Gold was quoted at USD2,606.23 an ounce early Tuesday, falling from USD2,617.20 on Monday.

Brent oil was trading at USD71.72 a barrel early Tuesday, slightly lower than USD71.76 late Monday.

In Tuesday's corporate calendar, AstraZeneca releases third-quarter results and Vodafone releases half-year results, among others.

In the economic calendar on Tuesday, look out for US consumer inflation expectations.

By Emma Curzon, Alliance News reporter

Comments and questions to [email protected]

Copyright 2024 Alliance News Ltd. All Rights Reserved.

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