London equities are expected to open lower on Tuesday as investors continue to assess escalating tariff threats from US President Donald Trump against Europe, while awaiting key UK labour market data.
Futures point to the FTSE 100 opening 48 points lower at around 10,147, extending Monday’s decline, which saw the index close down 0.4% at 10,195.
Sterling edged slightly higher against the dollar to $1.3433, while the euro strengthened to $1.1664. The dollar firmed modestly against the yen.
Market sentiment remains fragile after Trump warned of tariffs on European countries opposing US ambitions over Greenland. US Treasury Secretary Scott Bessent cautioned Europe against retaliation, describing Greenland as a “strategic asset” central to US security interests.
Analysts suggested markets were treating the rhetoric cautiously. Pepperstone’s Michael Brown said the reaction had been “contained”, reflecting a belief that Trump’s comments are a negotiating tactic rather than imminent policy action.
US markets reopen later today after the Martin Luther King Jr Day holiday, with investors bracing for renewed volatility.
In Asia, markets were broadly weaker. Japan’s Nikkei fell 1.1%, Hong Kong’s Hang Seng slipped 0.2%, and Australia’s ASX 200 lost 0.7%. China’s central bank left key lending rates unchanged, as expected.
Gold surged to a fresh record above $4,717 an ounce, extending its rally as investors sought safety amid geopolitical uncertainty and concerns over global trade. Brent crude eased slightly to around $64 a barrel.
