10th Jun 2025 06:51
(Alliance News) - London's FTSE 100 is called to edge slightly higher on Tuesday, recovering some of Monday's weakness, as focus remains on trade talks between the US and China.
Locally, eyes will be on a UK unemployment reading on Tuesday morning.
IG says futures indicate the FTSE 100 to open just 3.2 points higher at 8,835.48 on Tuesday. The index of London large-caps fell 5.63 points, 0.1%, to 8,832.28 at the start of the week.
The pound fell to USD1.3543 early Tuesday, from USD1.3556 at the time of the London equities close on Monday, while the euro was lower at USD1.1413 from USD1.1419. Versus the yen, the dollar rose to JPY144.50 from JPY144.42.
A barrel of Brent oil rose to USD67.13 from USD66.88. Gold traded at USD3,318.39 an ounce, declining from USD3,329.84.
The yield on the US 10-year Treasury was quoted at 4.47% early Tuesday UK time, narrowing from 4.49% at the time of the closing bell on the London Stock Exchange on Monday. The 30-year yield narrowed to 4.93% from 4.96%.
Key trade talks between US and Chinese officials in London will stretch into a second day, a source told AFP Monday, with both sides seeking to shore up a shaky tariff truce further strained by export curbs.
The gathering of key officials from the world's two biggest economies began Monday in the historic Lancaster House, run by the UK Foreign Office, following a first round of talks in Geneva last month.
Chinese Vice Premier He Lifeng was again heading the team in London, which included Commerce Minister Wang Wentao and China International Trade Representative Li Chenggang.
Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer are leading the US delegation.
"Markets could shift sharply if the talks are paused, cancelled, or fail to produce an agreement, as further escalation from the US would be seen as imminent. Risk assets would likely suffer, given that positioning has been building around highly optimistic expectations following the 90-day pause agreed upon by both nations," ActivTrades analyst Anderson Alves commented.
In New York on Monday, the Dow Jones Industrial Average ended slightly lower. The S&P 500 edged up 0.1%, while the Nasdaq Composite climbed 0.3%.
In Tokyo on Tuesday, the Nikkei 225 was 0.6% higher. In China, the Shanghai Composite was down 0.7%, falling into the red in afternoon trade despite spending the morning in the green. It was a similar story for the Hang Seng in Hong Kong which was down 0.3%. Financial markets in Sydney re-opened on Tuesday after a holiday on Monday. The S&P/ASX 200 traded 0.7% higher.
Tuesday's economic calendar has UK unemployment and average earnings data.
Tuesday's UK corporate calendar has a trading statement from housebuilder Bellway, and transport operator FirstGroup.
By Eric Cunha, Alliance News news editor
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