13th Jan 2025 06:57
(Alliance News) - Stocks in London are set to open lower on Monday, after Friday's US jobs data dampened rate cut hopes and amid news of surging exports from China.
"Friday's blowout December jobs report was too hot for comfort, seeing stocks slump into the weekend, as participants pushed back Fed cut pricing," Pepperstone's Michael Brown commented. "Headline nonfarm payrolls rose [256,000] in December, topping the forecast range, and marking the biggest one-month jump in employment since last March.
"Meanwhile, unemployment unexpectedly declined to 4.1%...against a backdrop where the FOMC's hawks already held the upper hand, amid the plethora of upside inflation risks that the year ahead seems likely to bring, and taking into account the potential for further risks stemming from president-elect Trump's initial policy moves."
IG says futures indicate the FTSE 100 to open down 13.4 points, 0.2%, on Monday. The index of London large-caps closed down 0.9% at 8,248.49 on Friday.
Ireland's construction purchasing managers' index returned to growth in December, data from S&P Global showed.
The headline seasonally adjusted BNP Paribas real estate Ireland construction total activity index rose to 51.6 from 47.5 in November. Survey respondents attributed this to an "improving demand environment".
Sterling was quoted at USD1.2152 early Monday, lower than USD1.2200 at the London equities close on Friday.
The euro traded at USD1.0219 early Monday, lower than USD1.0233 late Friday. Against the yen, the dollar was quoted lower at JPY157.49 versus JPY157.81.
In the US on Friday, Wall Street ended lower, with the Dow Jones Industrial Average down 1.6%, the S&P 500 down 1.5% and the Nasdaq Composite down 1.6%.
In Asia on Monday, the Shanghai Composite was down 0.6%, while the Hang Seng index in Hong Kong was down 1.1%. The S&P/ASX 200 in Sydney closed down 1.2%.
In Japan, financial markets were closed on Monday to mark Respect for the Aged Day.
China's exports surged to a record high in 2024, providing a much-needed boost for the economy as the prospect of biting tariffs imposed by US president-elect Donald Trump looms.
"In 2024, China's total exports exceeded CNY25 trillion for the first time, reaching CNY25.45 trillion [USD3.47 trillion], an increase of 7.1% year-on-year," Lu Daliang, spokesman for the General Administration of Customs, said. Total imports, meanwhile, rose 2.3% to CNY18.39 trillion.
Combined trade swelled 5% to reach a record CNY43.85 trillion, said Wang Lingjun, vice minister of the customs administration.
Gold was quoted at USD2,690.11 an ounce early Monday, slightly higher than USD2,690.05 on Friday.
Brent oil was trading at USD80.68 a barrel early Monday, higher than USD78.61 late Friday.
In Monday's corporate calendar, PageGroup releases a trading update.
In the economic calendar on Monday, the US releases consumer inflation expectations and the monthly budget statement.
By Emma Curzon, Alliance News reporter
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