London markets are expected to open higher on Thursday as investors assess developments from the high-profile US-China summit in Beijing and prepare for a significant batch of UK economic data.
FTSE 100 futures indicate the index will open around 32 points higher, or 0.3%, at 10,357.35. The benchmark index closed 0.6% higher at 10,325.35 on Wednesday. Investor attention remains focused on talks between US President Donald Trump and Chinese President Xi Jinping, with discussions covering Iran, trade relations and Taiwan.
Trump struck a notably positive tone during the opening of the summit, telling Xi the two countries could have a “fantastic future together” and describing it as “an honour” to be his friend.
Xi responded more cautiously, saying the US and China “should be partners and not rivals,” while warning that mishandling the Taiwan issue could seriously damage relations between the two powers.
Oil prices eased slightly following the talks, with Brent crude trading near USD106 per barrel early Thursday.
Back in the UK, political uncertainty continued to weigh on sentiment after reports suggested Health Secretary Wes Streeting may be preparing a leadership challenge against Prime Minister Keir Starmer.
Although immediate pressure on Starmer appeared to ease following Wednesday’s King’s Speech, speculation surrounding Labour Party divisions remained elevated after reports that some union backers had withdrawn support for the prime minister.
Markets are also awaiting a heavy slate of UK economic data due later Thursday morning.
Economists expect monthly UK GDP to contract 0.2% in March following February’s 0.5% expansion. First-quarter GDP growth is forecast to slow to 0.8% year-on-year, although quarterly growth is expected to improve to 0.6%.
Industrial production data is also expected to show a modest monthly decline.
On Wall Street, US markets ended mixed on Wednesday, with the Nasdaq Composite outperforming thanks to continued strength in technology and semiconductor shares.
Asian markets traded unevenly overnight. Japan’s Nikkei 225 fell 0.6%, while China’s Shanghai Composite declined 0.8%. Hong Kong’s Hang Seng rose 0.4%, and Australia’s S&P/ASX 200 was broadly flat.
Gold prices edged slightly higher amid ongoing geopolitical and political uncertainty, trading near USD4,700 per ounce early Thursday.
