London stocks are expected to open slightly lower on Tuesday, with investors focused on the start of the US earnings season and the release of key US inflation data.
Futures indicate the FTSE 100 will open down around 5 points at 10,136.90, after the FTSE 100 gained 27.3 points on Monday to close at 10,473.69.
US earnings season begins in earnest, with JPMorgan Chase and Delta Air Lines reporting later Tuesday, followed by Citigroup on Wednesday and Goldman Sachs on Thursday. Markets are also awaiting the latest US consumer price inflation figures.
Currency markets were steady. Sterling traded at USD1.3466 early Tuesday, slightly below Monday’s close. The euro eased to USD1.1655, while the dollar strengthened against the yen to JPY158.95.
Brent crude rose to USD64.16 a barrel from USD63.55, with oil markets closely watching developments in Iran and Venezuela. Trump announced a 25% tariff on any country trading with Iran, escalating pressure on Tehran amid unrest.
On Wall Street, equities ended higher on Monday, with the Dow up 0.2%, the S&P 500 gaining 0.2%, and the Nasdaq rising 0.3%, as investors shrugged off Fed-related tensions.
Asian markets were mostly positive. Japan’s Nikkei surged 3.0% amid speculation Prime Minister Sanae Takaichi may call a snap election, fuelling hopes of increased fiscal stimulus. China’s Shanghai Composite fell 0.5%, while Hong Kong’s Hang Seng edged 0.5% higher. Australia’s ASX 200 gained 0.6%.
Gold eased back to USD4,578.60 an ounce from USD4,621.38 on Monday after hitting record highs above USD4,600.
