29th Aug 2025 06:55
(Alliance News) - Stocks in London are set to open flat on Friday, ahead of closely watched data on the US economy due later in the day.
IG says futures indicate the FTSE 100 to open up 7.4 points, 0.1%, at 9,224.22. The index of London large-caps closed down 38.68 points, 0.4%, at 9,216.82.
Sterling was lower at USD1.3496 early Friday, from USD1.3513 at the London equities close on Thursday.
The euro traded at USD1.1666, down slightly from USD1.1668 late Thursday. Against the yen, the dollar was lower at JPY146.99 versus JPY147.02.
The yield on the 10-year US Treasury was unchanged at 4.22%. The yield on the 30-year slimmed to 4.89% from 4.91%.
Investors are focused on personal consumption expenditures data due at 1330 BST, which is the Federal Reserve's preferred inflation gauge.
Minutes from the July Federal Open Market Committee meeting showed officials judged the upside risk to inflation as being greater than the downside risk to employment.
Overnight, US Federal Reserve Governor Christopher Waller said the US central bank should lower its key interest rate at its upcoming monetary policy meeting.
"While I believe we should have cut in July, I am still hopeful that easing monetary policy at our next meeting can keep the labor market from deteriorating while returning inflation [to the 2.0% goal]," Waller said during a speech in Miami.
In the US on Thursday, Wall Street ended higher, with the Dow Jones Industrial Average up 0.2%, the S&P 500 0.3% higher and the Nasdaq Composite gained 0.5%.
Earnings season continued to unfold overnight as Marvell Technology said demand for artificial intelligence helped the company deliver record revenue in its financial second quarter, but a weaker than hoped outlook sent shares lower.
The Santa Clara, California-based firm which engages in the design, development, and sale of integrated circuits reported net income of USD194.8 million in the three months to August 2, swung from a loss of US193.3 million a year prior.
Revenue hit a record USD2.01 billion, up 58% from USD1.27 billion a year ago, in line with FactSet consensus.
Meanwhile, Caterpillar said tariffs are now expected to weigh more heavily on performance than previously expected.
The Irving, Texas-based heavy machinery maker said it expects the net impact from incremental tariffs introduced in 2025 to be approximately USD500 million to USD600 million in the third quarter ending September 30, up from previous guidance of USD400 million to USD500 million.
In Asia on Friday, the Nikkei 225 index in Tokyo was down 0.4%. In China, the Shanghai Composite was 0.1% higher, while the Hang Seng index in Hong Kong was climbed 0.8%. The S&P/ASX 200 in Sydney was down 0.1%.
Japan's labour market strengthened in July, but industrial production and retail sales slipped when compared with the previous month, official data showed.
Japan's unemployment rate unexpectedly dropped to 2.3% in July, the Statistics Bureau of Japan reported, defying FXStreet-cited expectations for no change from 2.5% in June.
According to preliminary figures from the Ministry of Economy, Trade & Industry, industrial production in Japan fell 1.6% month-on-month in July, down from a 2.1% increase in June. The decline in July exceeded the 1% fall that was expected.
Gold was quoted at USD3,409.60 an ounce early Friday, higher than USD3,407.04 on Thursday. Brent oil was trading higher at USD67.65 a barrel from USD67.51.
There are no major events scheduled in Friday's local corporate calendar.
As well as US personal consumption expenditures data, Friday will also see Canadian GDP numbers, German retail sales figures and CPI prints in France and Germany.
By Michael Hennessey, Alliance News reporter
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