The FTSE 100 is set to open the post-Christmas session modestly higher, with futures pointing to an 8-point gain at 9,878.68, taking its lead from a strong finish to the year in Asian markets and continued optimism around US interest rate cuts.
In Asian equity markets, South Korea’s Kospi jumped 2.2% to a two-month high and is on track for its strongest annual gain since 1999, while Taiwan’s benchmark index rose 0.9%. Other regional markets edged slightly lower, leaving MSCI’s broadest index of Asia-Pacific shares up 0.2%. Despite Donald Trump’s global trade tariffs, most Asian stock markets have still posted double-digit gains this year.
Precious metals remain firmly in focus. Silver surged above $80 an ounce for the first time, extending a powerful rally driven by expectations of lower interest rates and heightened safe-haven demand. Gold edged slightly lower but remains on track for its strongest annual performance in decades.
In currency markets, the yen ticked higher following a mildly hawkish policy summary from the Bank of Japan.
European equity futures are pointing to a firmer open as investors look ahead to the release of minutes from the Federal Reserve’s latest policy meeting.
Whether the so-called Santa rally makes its way to London remains uncertain. Wall Street stocks pushed to record highs on Christmas Eve, but trading volumes are expected to stay thin in the UK during the shortened holiday week, with markets closed on Thursday for New Year’s Day. European futures are pointing to a slightly firmer open.
Oil prices have climbed 1% amid heightened geopolitical tensions in the Middle East and developments around Ukraine peace talks. Fresh unrest, including Saudi air strikes in Yemen and Iran’s declaration of a “full-scale war” with the US, Europe and Israel over the weekend, has stoked concerns over potential supply disruptions. Brent crude, the global benchmark, is up 61 cents at $61.25 a barrel.
Meanwhile, US President Donald Trump said a deal to end the war in Ukraine is “closer than ever,” though he acknowledged that “thorny” issues remain over the future of the eastern Donbas region. His comments followed a two-hour meeting with Ukrainian President Volodymyr Zelenskyy in Florida on Sunday, after which Trump said a draft agreement was nearly “95% done.”
