21st Jan 2025 06:55
(Alliance News) - Stocks in London are set to open slightly lower on Tuesday, after Donald Trump lifted "investor morale" on his first day back in the White House with an uncharacteristically "careful" policy approach.
"As Donald Trump was sworn in for his second term as President, US stock market futures soared, fuelled by anticipation of bold executive actions expected to invigorate the economy," commented Pepperstone's Stephen Innes. "Yet, in a twist that calmed nerves across global markets, it revealed that President Trump revealed he would not, contrary to expectations, roll out new tariffs immediately.
"Instead, his initial move involves a directive for federal agencies to critically evaluate current trade policies and economic relationships, with a keen focus on China, Canada, and Mexico."
IG says futures indicate the FTSE 100 to open down 5.0 points, 0.1%, at 8,515.54 on Tuesday. The index of London large-caps closed up 0.2% on Monday.
Sterling was quoted at USD1.2263 early Tuesday, lower than USD1.2298 at the London equities close on Monday.
The euro traded at USD1.0369 early Tuesday, lower than USD1.0399 late Monday. Against the yen, the dollar was quoted lower at JPY155.44 versus JPY155.69.
Financial markets in New York were closed on Monday for Martin Luther King Jr Day, although in traders' absence the new US government did not rock the boat as violently as anticipated.
"[Trump] took a tempered approach and issued a sweeping trade directive that notably did not include the immediate tariffs on China, Canada, and Mexico he had previously championed," Innes elaborated. "This careful stance marks a departure from his earlier aggressive trade rhetoric and has significantly lifted investor morale, infusing a refreshing sense of optimism across global markets."
In Asia on Tuesday, the Nikkei 225 index in Tokyo was up 0.3%. In China, the Shanghai Composite was down 0.1%, while the Hang Seng index in Hong Kong was up 0.8%. The S&P/ASX 200 in Sydney closed up 0.7%.
Gold was quoted at USD2,724.51 an ounce early Tuesday, higher than USD2,707.18 on Monday.
Brent oil was trading at USD79.18 a barrel early Tuesday, lower than USD79.69 late Monday.
Tuesday's corporate calendar includes half-year results from Kier Group and Baillie Gifford US Growth Trust, while several other firms including Marshalls, Marston's and Premier Foods have trading updates scheduled.
In the economic calendar on Tuesday, there is consumer price inflation data from Canada in the afternoon UK time, and the UK's unemployment figures, set to be released shortly.
By Emma Curzon, Alliance News reporter
Comments and questions to [email protected]
Copyright 2025 Alliance News Ltd. All Rights Reserved.