4th Mar 2025 06:50
(Alliance News) - Stocks in London are set to open in the red on Tuesday, following news that the US' Trump administration is moving forward with planned tariffs of up to 25% against Mexico, Canada and China.
The White House also said Trump had inked an order to increase a previously imposed 10% tariff on China to 20%.
Beijing subsequently warned that it would take countermeasures against the levies, while Canadian Prime Minister Justin Trudeau stated that if they take effect, "Canada will, effective 12:01 a.m. EST tomorrow, respond with 25% tariffs against USD155 billion of American goods".
IG says futures indicate the FTSE 100 to open down 44.9 points, 0.5%, at 8,826.41 on Tuesday. The index of London large-caps closed up 0.7% on Monday.
Sterling was quoted at USD1.2697 early Tuesday, lower than USD1.2710 at the London equities close on Monday.
The euro traded at USD1.0483 early Tuesday, lower than USD1.0498 late Monday. Against the yen, the dollar was quoted lower at JPY149.38 versus JPY150.20.
In the US on Monday, Wall Street ended lower, with the Dow Jones Industrial Average down 1.5%, the S&P 500 down 1.8% and the Nasdaq Composite down 2.6%.
In Asia on Tuesday, the Nikkei 225 index in Tokyo was down 1.2%. In China, despite the US tariff announcements, the Shanghai Composite was up 0.3%, while the Hang Seng index in Hong Kong was marginally lower. The S&P/ASX 200 in Sydney closed down 0.6%.
Gold was quoted at USD2,885.75 an ounce early Tuesday, lower than USD2,888.92 on Monday.
Brent oil was trading at USD71.03 a barrel early Tuesday, lower than USD72.59 late Monday.
In Tuesday's corporate calendar, it's a busy morning for full-year results including those from Ashtead, Intertek, Beazley and Fresnillo.
In the economic calendar on Tuesday, notable items include eurozone unemployment data and the US Redbook index.
By Emma Curzon, Alliance News reporter
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