4th Jun 2025 06:52
(Alliance News) - Stocks in London are set to open higher on Wednesday, following news that US President Donald Trump is sparing the UK from the immediate hit of steel and aluminium tariffs.
According to the text of his order, Trump has "further determined that it is necessary and appropriate to allow for the implementation of the US-UK Economic Prosperity Deal of May 8, 2025 [EPD], and to accordingly provide different treatment, as described below, for imports of steel and aluminium articles, and their derivatives, from the UK".
Meanwhile in the US, Federal Reserve Governor Lisa Cook warned of higher inflation and a jobs market cooldown. She added that "the economic environment could become highly challenging for monetary policymakers".
"Globally, the direction of travel is towards increasing barriers in the movement of goods, capital, and people, as countries turn inwards, and the environment more insular," commented Pepperstone's Michael Brown. "These shifts seem secular in nature and, in turn, should result in higher inflation (2% as a floor, not ceiling), as well as higher interest rates (neutral as a floor, not ceiling) moving forwards."
IG says futures indicate the FTSE 100 to open up 9.7 points, 0.1%, on Wednesday. The index of London large-caps closed up 0.2% at 8.787.02 on Tuesday.
Sterling was quoted at USD1.3504 early Wednesday, higher than USD1.3499 at the London equities close on Tuesday.
The euro traded at USD1.1360 early Wednesday, lower than USD1.1385 late Tuesday. Against the yen, the dollar was quoted higher at JPY144.25 versus JPY143.24.
In the US on Tuesday, Wall Street ended higher, with the Dow Jones Industrial Average up 0.5%, the S&P 500 up 0.6% and the Nasdaq Composite up 0.8%.
In Asia on Wednesday, the Nikkei 225 index in Tokyo was up 0.8%. In China, the Shanghai Composite was up 0.4%, while the Hang Seng index in Hong Kong was up 0.6%. The S&P/ASX 200 in Sydney was up 0.8%.
Gold was quoted at USD3,350.15 an ounce early Wednesday, higher than USD3,349.93 on Tuesday.
Brent oil was trading at USD65.31 a barrel early Wednesday, lower than USD65.73 late Tuesday.
In Wednesday's corporate calendar, discoverIE and Ninety One release their full-year results.
In the economic calendar on Wednesday, there are composite PMI releases from multiple regions including the UK, US and Germany.
By Emma Curzon, Alliance News reporter
Comments and questions to [email protected]
Copyright 2025 Alliance News Ltd. All Rights Reserved.