FTSE 100 Seen Higher as Investors Watch Nato Summit and UK House Price Data
London stocks are set for a modestly higher open on Tuesday, with investors monitoring the start of the Nato summit and awaiting UK house price data.
Futures indicate the FTSE 100 will open around 14 points higher, or 0.1%, at 10,664.57. The index of London large-caps closed 0.3% lower at 10,651.77 on Monday.
Attention in the UK will turn first to the Halifax house price index, due at 0700 BST. House prices are expected to have risen 0.1% month-on-month in June, following a 0.1% decline in May.
Sterling was quoted at USD1.3384 early Tuesday, up from USD1.3354 at the London equities close on Monday. Against the euro, the pound strengthened to EUR1.1707 from EUR1.1696.
The euro traded at USD1.1432, up from USD1.1417 late Monday. Against the yen, the dollar eased to JPY161.84 from JPY162.34.
Geopolitics remains firmly in focus as leaders from Nato’s 32 member states gather in Ankara for two days of talks. The summit is expected to centre on higher European defence spending, military capability upgrades and major arms procurement agreements.
The meeting opens with a large defence industry fair, aimed at helping member states convert rising military budgets into new capabilities and multibillion-dollar procurement contracts.
Under pressure from US President Donald Trump, Nato members last year agreed to raise defence spending from 2.0% to 3.5% of gross domestic product by 2035, with a further 1.5% of GDP allocated to defence-related expenditure. This year’s summit is expected to focus on turning those commitments into practical delivery.
Separately, Trump expressed optimism that efforts to end the war in Ukraine were making progress following a phone call with Russian President Vladimir Putin. Speaking ahead of the summit, Trump said talks to end the conflict were “getting much closer than people realize”.
In the US on Monday, Wall Street closed higher. The Dow Jones Industrial Average rose 0.3%, the S&P 500 gained 0.7%, and the Nasdaq Composite advanced 1.1%.
In Asia on Tuesday, the Nikkei 225 in Tokyo fell 2.5%, despite data showing Japanese household spending declined by less than expected in May.
According to Japan’s Statistics Bureau, average monthly household spending fell 0.4% year-on-year in real terms to JPY320,345, or around USD1,975.52. Economists had expected a sharper 2.5% fall. Average monthly household income rose 0.7% in real terms, slowing from 2.3% growth in April.
In China, the Shanghai Composite was down 1.2%, while Hong Kong’s Hang Seng index fell 0.5%. Australia’s S&P/ASX 200 closed 0.4% lower.
Gold was quoted at USD4,118.10 an ounce early Tuesday, down from USD4,148.94 on Monday. Brent crude rose to USD72.64 a barrel from USD72.13.
On Tuesday’s corporate calendar, Shell is due to issue a trading statement, while Victrex will report third-quarter results.
The UK economic calendar also includes the Bank of England’s financial stability report, while Monetary Policy Committee member Catherine Mann is scheduled to speak.
