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LONDON MARKET EARLY CALL: Stocks to open flat as US government closes

1st Oct 2025 06:58

(Alliance News) - Stocks in London are set to open marginally lower on Wednesday, easing off a record high, as the US government shuts down after failing to agree a spending deal.

IG says futures indicate the FTSE 100 to open down 3.3 points at 9,347.13 on Wednesday. The index of London large-caps closed up 0.5% at 9,350.43, beating its previous record close of 9,321.40 in August.

Sterling was at USD1.3459, up from USD1.3443 at the London equities close on Tuesday. The euro traded at USD1.1756, up from USD1.1727 late Tuesday. Against the yen, the dollar was lower at JPY147.54 versus JPY147.98.

The yield on the 10-year US Treasury widened to 4.15% on Wednesday from 4.12% on Tuesday. The yield on the 30-year widened to 4.73% from 4.69%.

BHP on Wednesday said it is investing to boost Olympic Dam operations in South Australia.

The Melbourne, Australia-based diversified miner said it is investing over AUD840 million, USD554.5 million, in growth-enabling projects to strengthen the foundations of underground mining productivity and continue building its copper province in the far north of South Australia.

The investment funds several key projects such as an underground access tunnel known as a decline, into the Southern Mine area, which provides access to a new section of the resource.

The US government began shutting down after midnight Wednesday as lawmakers and President Donald Trump failed to break a budget impasse during acrimonious talks that hinged on Democratic demands for health care funding.

It is the first shutdown since the longest in history – lasting 35 days – almost seven years ago, and it will stop work at multiple federal departments and agencies, affecting hundreds of thousands of government workers.

Pepperstone analyst Michael Brown said: "While we wait to see how long the current Congressional impasse may persist for, I remain strongly of the view that participants should continue to look-through the political noise as, in the grand scheme of things, the expiration of federal funding doesn’t make especially much difference."

Back in the UK, business confidence slumped to its lowest level on record last month amid concerns over soaring costs, according to a new survey of company bosses.

Data from the Institute of Directors showed that firms said higher labour costs has been the biggest contributor to growing pessimism about the economy.

The industry group's monthly economic confidence index, which measures business leader optimism about the prospects of the UK economy, posted a minus 74 reading for September.

It marked a significant decline from minus 61 and struck the lowest level since the index was launched more than nine years ago.

In the US on Tuesday, Wall Street ended higher, with the Dow Jones Industrial Average up 0.2%, the S&P 500 gained 0.4% and the Nasdaq Composite was 0.3% higher.

Overnight, Nike said sales beat expectations in the first quarter boosting hopes that the turnaround at the sports retailer is gathering momentum.

The athletic wear company said net income declined 31% to USD727 million in the three months to August from USD1.05 billion the year prior, or to USD0.49 per basic and diluted share from USSD0.70, beating USD0.28 consensus.

Revenue rose 1.1% to USD11.72 billion from USD11.59 billion a year ago, but fell 1% on a currency neutral basis, comfortably ahead of USD10.99 billion consensus.

In Asia on Wednesday, the Nikkei 225 index in Tokyo was down 0.9%. The S&P/ASX 200 in Sydney was 0.1% lower. The financial markets are closed in Shanghai and China for National Day.

Gold was higher at USD3,863.40 an ounce early on Wednesday from USD3,836.50 late Tuesday. Brent oil was trading higher at USD66.12 a barrel from USD65.99.

Wednesday's global economic calendar has a slew of manufacturing PMI readings and the ADP jobs report in the US.

Wednesday's UK corporate calendar sees a trading statement from bakery chain Greggs and retailer Topps Tiles.

By Michael Hennessey, Alliance News reporter

Comments and questions to [email protected]

Copyright 2025 Alliance News Ltd. All Rights Reserved.


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