11th Nov 2024 07:00
(Alliance News) - Stocks in London are set to open higher on Monday, despite a lacklustre Chinese inflation reading and with analysts digesting what the second Trump administration will mean for the UK economy.
"The Democratic governor of New Jersey said over the weekend that the UK could enjoy a better regime under the Trump administration than other parts of the world," said XTB's Kathleen Brooks. "Thus, we could see some outperformance of the FTSE 100 vs. other European indices at the start of the new week...While a favourable tariff regime for the UK is something to celebrate, upside for UK stocks could be limited by news that some of the biggest UK retailers, including Tesco and Sainsbury's may have to raise prices due to the impact of the national insurance increase for employers in the budget. Thus, the prospect of rising prices could limit any upside for UK stocks at the start of this week."
IG says futures indicate the FTSE 100 to open up 37.2 points, 0.5%, on Monday. The index of London large-caps closed down 0.8% on Friday.
Sterling was quoted at USD1.2915 early Monday, lower than USD1.2926 at the London equities close on Friday.
The euro traded at USD1.0718 early Monday, lower than USD1.0731 late Friday. Against the yen, the dollar was quoted higher at JPY153.52 versus JPY152.62.
In the US on Friday, Wall Street ended higher, with the Dow Jones Industrial Average up 0.6%, the S&P 500 up 0.4% and the Nasdaq Composite up 0.1%.
In Asia on Monday, the Nikkei 225 index in Tokyo was up 0.1%. In China, the Shanghai Composite was up 0.3%, while the Hang Seng index in Hong Kong was down 1.2%. The S&P/ASX 200 in Sydney closed down 0.4%.
China's consumer inflation rate slowed in October, official data showed Saturday, in a sign that demand remains sluggish in the world's number two economy.
The consumer price index, a key measure of inflation, rose 0.3% year-on-year in October, down from 0.4% in September, below the 0.4% forecast in a Bloomberg survey of economists.
Gold was quoted at USD2,672.38 an ounce early Monday, lower than USD2,685.63 on Friday.
Brent oil was trading at USD73.89 a barrel early Monday, higher than USD73.58 late Friday.
In Monday's corporate calendar RHI Magnesita, HgCapital and Team Internet release third-quarter results.
In the economic calendar on Monday, look out for Ireland's industrial production reading.
By Emma Curzon, Alliance News reporter
Comments and questions to [email protected]
Copyright 2024 Alliance News Ltd. All Rights Reserved.