LONDON MARKET EARLY CALL: FTSE 100 set to rise from record close

(Alliance News) - Stocks in London are set to open higher on Tuesday, after the FTSE 100 reached a new closing record above the 10,000 mark on Monday, amid ongoing geopolitical uncertainty.

IG says futures indicate the FTSE 100 to open up 41.0 points, 0.4%, at 10,045.57 on Tuesday. The index of London large-caps closed up 53.43 points, 0.5%, at 10,004.57 on Monday, a record closing peak.

Sterling was at USD1.3557 on Tuesday morning, up from USD1.3516 at the London equities close on Monday. The euro was higher at USD1.1736 from USD1.1713. Against the yen, the dollar was slightly lower at JPY156.37 versus JPY156.41.

UK shop price inflation will "remain sticky" in 2026, having increased in December, the British Retail Consortium reported.

Inflation picked up 0.7% in December, accelerating from 0.6% in November and in line with the 0.7% three-month average, the BRC said.

"Shop price inflation edged up in December as food prices rose at a faster rate," commented BRC Chief Executive Helen Dickinson.

"Nonetheless, shoppers still found plenty of value across many Christmas essentials including vegetables, cheeses, and alcohol, helping households to enjoy the festive season."

Mike Watkins, head of retailer & business insight at NielsenIQ, added: "This Christmas, shoppers remained cautious, prioritising affordability...Retailers worked hard to encourage spending by keeping supply chain price increases to a minimum, and many food retailers reduced prices in December to support demand."

Elsewhere, US President Donald Trump said he does not expect a new election in Venezuela within the next 30 days.

"We have to fix the country first. You can't have an election," he told US broadcaster NBC News. "It's going to take a period of time," he said, adding: "We have to nurse the country back to health."

In the US on Monday, Wall Street ended higher, with the Dow Jones Industrial Average up 1.2%, while the S&P 500 climbed 0.6% and the Nasdaq Composite ended up 0.7%.

The yield on the 10-year US Treasury was at 4.18% on Tuesday, widened slightly from 4.17% on Monday. The yield on the 30-year was at 4.88%, widened from 4.86%.

In Asia on Monday, the Nikkei 225 in Tokyo was up 1.3%. In China, the Shanghai Composite was 1.4% higher, while the Hang Seng Index in Hong Kong gained 1.6%. The S&P/ASX 200 in Sydney lost 0.5%.

Gold was up at USD4,464.00 an ounce early on Tuesday from USD4,441.79 late Monday. Brent oil was trading slightly lower at USD61.56 a barrel from USD61.63.

Tuesday's local corporate calendar has a trading statement from clothing and homeware retailer, Next.

Tuesday's global economic calendar has a slew of composite PMI readings, CPI prints in Germany and France, and grocery market share figures in the UK.

By Michael Hennessey, Alliance News reporter

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