24th Dec 2025 07:01
(Alliance News) - Stocks in London were set to open lower on Wednesday, on what is expected to be a quiet session after blowout US gross domestic product data on Tuesday, with trading activity thinned by the looming Christmas holiday period.
The London Stock Exchange will close early on Christmas Eve, the final bell at 1230 GMT. It will remain shut on Thursday and Friday for Christmas Day and Boxing Day. The market will re-open for normal trading hours on Monday and Tuesday next week before another half-day on New Year's Eve.
IG says futures indicate the FTSE 100 index to open down 4.7 points, or 0.1%, at 9,884.52 on Wednesday. The index of London large-caps closed up 0.3% at 9,889.22 on Tuesday.
Data published Tuesday by the Bureau of Economic Analysis showed US economic growth unexpectedly picked up in the third quarter.
Gross domestic product expanded at an annualised quarter-on-quarter pace of 4.3% in the three months to September 30, comfortably beating the FXStreet-cited consensus forecast of 3.3% and accelerating from a 3.8% expansion in the second quarter.
"The increase in real GDP in the third quarter reflected increases in consumer spending, exports, and government spending that were partly offset by a decrease in investment. Imports, which are a subtraction in the calculation of GDP, decreased," the BEA said.
On a year-on-year basis, GDP rose 2.3% in the third quarter, the strongest pace of the year so far, up from 2.1% in the second quarter and 2.0% in the first quarter.
The dollar was weak overnight. Sterling was quoted at USD1.3521 early Wednesday, higher than USD1.3481 at the London equities close on Tuesday. The euro traded at USD1.1800, up from USD1.1777 late Tuesday. Against the yen, the dollar weakened to JPY155.79 from JPY156.95.
In the US on Tuesday, Wall Street ended higher, with the Dow Jones Industrial Average up 0.2%, the S&P 500 up 0.5% and the Nasdaq Composite up 0.6%
US trade officials said China should be penalised for what they described as unfair tactics aimed at dominating the semiconductor industry, though tariffs will not be imposed for another 18 months.
A US Trade Representative investigation concluded that China's targeting of semiconductors "for dominance is unreasonable and burdens or restricts US commerce and thus is actionable". The current tariff rate of zero will be raised from June 23, 2027, to a level to be announced at least 30 days beforehand, the USTR said.
In Asia on Wednesday, the Nikkei 225 index in Tokyo was down 0.2%. In China, the Shanghai Composite was up 0.5%, while the Hang Seng index in Hong Kong was up 0.2%. The S&P/ASX 200 in Sydney closed down 0.4%.
Gold extended its rally, quoted at USD4,494.70 an ounce early Wednesday, up from USD4,462.05 on Tuesday.
Brent oil traded at USD62.45 a barrel early Wednesday, higher than USD62.09 late Tuesday.
Oil prices continued to rise amid escalating tensions involving Venezuela, home to some of the world's largest oil reserves. China and Russia accused the US of "bullying" and "cowboy-like conduct" towards Venezuela during an emergency UN Security Council meeting in New York.
US Ambassador to the UN Mike Waltz said Venezuela's leader Nicolas Maduro was not a legitimate president, but a criminal using oil revenues to fund drug trafficking. Russia's UN Ambassador Vasily Nebenzya accused Washington of "cowboy-like conduct," including what he described as an illegal blockade of Venezuela's coastline. China, which imports Venezuelan oil, condemned what it called unilateral US "bullying" and warned that interference in Venezuela's internal affairs jeopardises peace and stability in Latin America, adding that freedom of navigation must be guaranteed.
In Wednesday's corporate calendar, there are no scheduled UK company announcements.
In the economic calendar on Wednesday, US weekly jobless claims, US crude oil inventories, and Canada's budget balance figures are due in the London afternoon.
By Eva Castanedo, Alliance News reporter
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