14th Jul 2025 06:56
(Alliance News) - Stocks in London are set to open flat at the start of the week, while European peers are expected to fall after the opening bell, with the latest batch of tariff unnerving investors.
IG says futures indicate the FTSE 100 to open just 2.0 points higher at 8,943.12 on Monday. The index of London large-caps closed down 34.54 points, 0.4%, at 8,941.12 on Friday.
In Frankfurt, the DAX 40 is called down 0.7%, while in Paris, the CAC 40 is set to open 0.6% lower.
President Donald Trump on Saturday said major US trading partners Mexico and the EU would face a 30% tariff starting next month, ramping up pressure for deals in his trade wars.
Both sets of duties would take effect August 1, Trump said in separate letters posted to his Truth Social platform, citing Mexico's role in illicit drugs flowing into the US and a trade imbalance with the EU respectively.
"Trump's tariff barrage now spans continents—Canada, Brazil, Algeria, and now the EU and Mexico. Markets have priced it all mainly as noise, but there's a growing sense that this time may be different. The 30% number is not just headline bait; it's punitive by design, and the street will grow increasingly jittery as the tariff deadline clock ticks down. The recent optimism in Brussels that a deal might materialize has been punctured by a weekend letter that arrived like a diplomatic sucker punch," SPI Asset Management analyst Stephen Innes commented.
The EU will extend its suspension of tariffs on goods imported from the US until early August, despite Washington's decision to slap a 30% levy on imports from the bloc, European Commission President Ursula von der Leyen said.
"The US have sent us a letter with measures that would come into effect unless there is a negotiated solution," she said. "We will therefore also extend the suspension of our countermeasures till early August."
The pound fell to USD1.3468 early Monday, from USD1.3503 at the time of the London equities close on Friday. The euro faded to USD1.1668 from USD1.1699. Against the yen, the dollar edged up to JPY147.45 from JPY147.34.
The yield on the US 10-year Treasury was quoted at 4.43% early Monday, stretching from 4.41% at the time of the European equities close on Friday. The yield on the US 30-year Treasury was quoted at 4.97%, widening from 4.93%.
In Asia, Tokyo's Nikkei 225 was up 0.1% in late trade. In China, the Shanghai Composite was up 0.5%, while the Hang Seng Index was 0.4% higher. The S&P/ASX 200 was up slightly.
In New York on Friday, the Dow Jones Industrial Average fell 0.6%, the S&P 500 down 0.3% and the Nasdaq Composite 0.2% lower.
The first batch of quarterly earnings from major US stocks land this week, with big banks among those reporting on Tuesday.
A barrel of Brent was largely flat at USD70.43 on Monday morning, from USD70.38 at the time of the London equities close on Friday. Gold fell to USD3,357.11 an ounce from USD3,364.33.
Monday's UK corporate calendar sees a trading update from investment manager, Ashmore Group.
By Eric Cunha, Alliance News news editor
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