3rd Jul 2025 06:52
(Alliance News) - Stocks in London are set to open higher on Thursday following a minor slump on Wednesday, as new data shows UK business confidence remains weak and a shortage of workers could hurt a government housebuilding pledge.
IG says futures indicate the FTSE 100 to open up 26.8 points, 0.3%, at 8,801.49 on Thursday. The index of London large-caps closed down 10.64 points, 0.1%, at 8,774.69 on Wednesday.
UK business confidence remains fragile after firms swallowed the jump in tax and labour costs in April, according to new research.
A survey by the British Chambers of Commerce found that most firms continue to see tax pressures as their main concern going forward.
The quarterly economic survey showed that 56% of firms said they were particularly concerned about their tax burden, with this followed by worries over rising inflation.
The BCC said the research found that "confidence among businesses remains weak", with 49% of firms expecting to increase their turnover in the next 12 months.
Meanwhile, a critical shortage of skilled workers is jeopardising the UK government's pledge to build 1.5 million new homes by 2029, according to research.
Skills development organisation City & Guilds surveyed employers, training providers and employees, finding 76% of construction firms are struggling to recruit the skilled people they need, with 84% agreeing the industry is suffering from critical skills shortages.
Sterling was quoted at USD1.3629 early Thursday, higher than USD1.3612 at the London equities close on Wednesday.
The euro traded at USD1.1789 early Thursday, higher than USD1.1781 late Wednesday. Against the yen, the dollar was quoted up at JPY143.87 versus JPY143.85.
In the US on Wednesday, Wall Street ended mixed, with the Dow Jones Industrial Average slightly lower, the S&P 500 up 0.5% and the Nasdaq Composite rising 0.9%.
US President Donald Trump's signature tax and spending bill was in limbo early Thursday as Republican leaders in the US Congress scrambled to win over a group of rebels threatening to torpedo the centerpiece of the president's domestic agenda.
Trump is seeking final approval in the House of Representatives for his Senate-passed "One Big Beautiful Bill" – but faces opposition on all sides of his fractious party over provisions set to balloon the national debt while launching a historic assault on the social safety net.
Originally approved by the House in May, Trump's sprawling legislation squeezed through the Senate on Tuesday by a solitary vote but had to return to the lower chamber Wednesday for a rubber stamp of the Senate's revisions.
The package honours many of Trump's campaign promises, boosting military spending, funding a mass migrant deportation drive and committing USD4.5 trillion to extend his first-term tax relief.
But it is expected to pile an extra USD3.4 trillion over a decade onto the country's fast-growing deficits, while forcing through the largest cuts to the Medicaid health insurance program since its 1960s launch.
The yield on the US 10-year Treasury was quoted at 4.27%, narrowed from 4.29% on Wednesday. The yield on the US 30-year Treasury was flat at 4.79%.
In Asia on Thursday, the Nikkei 225 index in Tokyo faded 0.7%. In China, the Shanghai Composite gained 0.1%, while the Hang Seng index in Hong Kong shed 0.9%. The S&P/ASX 200 in Sydney closed down 0.1%.
Gold was quoted at USD3,351.95 an ounce early Thursday, up from USD3,341.71 on Wednesday.
Brent oil was trading at USD68.41 a barrel early Thursday, higher than USD67.57 late Wednesday.
In Thursday's corporate calendar, full-year results from electronics retailer Currys and watch retailer Watches of Switzerland.
In the economic calendar on Thursday, there's several composite purchasing managers indices, including the UK at 0930 BST, followed by the latest US nonfarm and weekly jobless figures at 1330 BST.
By Emily Parsons, Alliance News reporter
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