7th Apr 2025 06:57
(Alliance News) - Stocks in London are set to open down on Monday, as governments and markets globally continue to navigate US tariff-related concerns.
"This isn't just Trade War 2.0 — this is full-spectrum macro escalation," SPI's Stephen Innes said. "Tariffs were the spark. What's burning now is global confidence, FX stability, and any illusion that this ends with a handshake.
"Trump's 34% "Liberation Day" tariff barrage [on China] triggered an immediate and surgical response from Beijing: 34% tariffs on all US goods — and export controls on rare earths to boot. There's a real risk is now playing out in currency markets, where the yuan is quietly — and maybe not so unintentionally — slipping toward the edge."
For the UK, US President Donald Trump's 10% levy on British imports into America came into force on Saturday, while a 25% levy on foreign car imports took effect on Thursday.
Prime Minister Keir Starmer has pledged to "do everything necessary" to protect the national interest in the wake of Trump's tariffs, and said that ministers are "ready to use industrial policy" to help shelter businesses.
IG says futures indicate the FTSE 100 to open down 149.0 points, 1.9%, on Monday. The index of London large-caps closed down 5.0% at 8,054.98 on Friday.
Sterling was quoted lower at USD1.2914 early Monday, lower than USD1.3114 at the London equities close on Friday.
The euro traded at USD1.0996 early Monday, lower than USD1.1047 late Friday. Against the yen, the dollar was quoted lower at JPY145.80 versus JPY146.11.
In the US on Friday, Wall Street ended lower, with the Dow Jones Industrial Average down 5.5%, the S&P 500 down 6.0% and the Nasdaq Composite down 5.8%.
In Asia on Monday, the Nikkei 225 index in Tokyo was down 6.5%. In China, the Shanghai Composite was down 7.3%, while the Hang Seng index in Hong Kong was down 12%. The S&P/ASX 200 in Sydney closed down 3.9%.
Gold was quoted at USD3,033.93 an ounce early Monday, lower than USD3,109.85 on Friday.
Brent oil was trading at USD63.73 a barrel early Monday, lower than USD69.80 late Friday.
In Monday's corporate calendar, there is a trading update from Ferrexpo.
In the economic calendar on Monday, look out for trade balance data from Germany.
By Emma Curzon, Alliance News reporter
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