Stocks in London are set to edge higher on Tuesday, with the FTSE 100 expected to build modestly on Monday’s record close.
Futures point to the FTSE 100 opening 3 points higher at 10,344.36. The index surged 1.2% on Monday to end at a record 10,341.56, having gained 118 points in its strongest session for months.
Gold prices continued to recover after last week’s rout, trading at $4,885.40 an ounce early Tuesday, up from $4,696.11 late Monday.
US President Donald Trump said Washington will establish a $12bn strategic reserve of rare earth elements and other critical minerals in a bid to reduce reliance on China, which dominates global refining capacity. Speaking at the White House, Trump said the reserve would help shield US companies from supply shortages and price volatility. Around $10bn of funding will come from the US Export-Import Bank, with private investors contributing the remaining $2bn.
Overnight, the Reserve Bank of Australia raised its cash rate by 25 basis points to 3.85%, citing inflation pressures that are likely to remain above target for some time.
On Wall Street, US markets closed higher on Monday, with the Dow Jones Industrial Average up 1.1%, the S&P 500 gaining 0.5% and the Nasdaq Composite rising 0.6%.
Asian markets also posted strong gains. Japan’s Nikkei 225 jumped 3.9%, China’s Shanghai Composite rose 1.2% and Hong Kong’s Hang Seng Index added 0.3%. Australia’s S&P/ASX 200 climbed 0.9%.
