(Alliance News) - Stocks in London are set to open slightly lower on Tuesday, as investors keep an eye on developments in the US bond market and the day's PMI prints from major economies.
IG says futures indicate the FTSE 100 to open down 8.0 points, 0.1%, at 7,366.83 on Tuesday. The index of London large-caps closed down 27.31 points, 0.4%, at 7,374.83 on Monday.
UK unemployment data is due shortly, having been delayed from last week. The unemployment rate in the three months to August is expected to remain unchanged at 4.3%.
The dollar was slightly weaker in early exchanges in Europe.
Sterling was quoted at USD1.2264 early Tuesday, rising from USD1.2226 at the London equities close on Monday. The euro traded at USD1.0677, higher than USD1.0639. Against the yen, the dollar was quoted at JPY149.74, down slightly versus JPY149.79.
"The slide in the US dollar...could in part have been because of reports that Hamas is prepared to release more hostages, with another 2 reported released, along with further reports that another 50 with dual citizenship might be released, although at the time of writing this hasn’t been confirmed," offered CMC Markets' Michael Hewson.
US President Joe Biden said that any discussions about a Gaza ceasefire could only take place if Hamas frees all hostages seized from Israel in its October 7 attack. "We should have those hostages released and then we can talk," Biden said at a White House event when asked if he would support a "hostages-for-ceasefire" deal.
Meanwhile, China has called for peace talks in the conflict. Foreign Minister Wang Yi said the situation must be prevented from escalating further and leading to an even greater humanitarian catastrophe, in a telephone conversation with his Israeli counterpart Eli Cohen.
Wang, China's top diplomat, will pay a rare visit to Washington this week, the US announced, paving the way for a potential visit by President Xi Jinping aimed at keeping tensions in check.
This follows reports from US and Chinese officials of "productive" first meeting of a new economic working group. "The two sides had in-depth, candid and constructive communication on issues such as the global macroeconomic situation and policies, bilateral economic relations, and cooperation in responding to global challenges," Chinese state broadcaster CCTV reported.
"China expressed its own concerns. Both parties will continue to maintain communication," the report added.
In the US on Monday, Wall Street ended mixed, with the Dow Jones Industrial Average down 0.6%, and the S&P 500 down 0.2%. However, the Nasdaq Composite added 0.3%, as tech stocks gained ahead of earnings, and benefitted from easing US bond yields.
In Asia on Tuesday, the Nikkei 225 index in Tokyo was up 0.3%.
Japan's private sector stagnated in October, according to preliminary survey data on Tuesday.
The au Jibun Bank flash composite purchasing managers' index fell to 49.9 points this month from 52.1 in September, indicating a marginal contraction. This was largely attributable to slowing growth in the services sector, due to weaker new business growth amid falling foreign demand for Japanese services. Manufacturing continued to contract at the same pace as the prior month, as the decline in new orders persisted and production levels shrunk at the fastest pace in eight months.
In China, the Shanghai Composite was up 0.2%, while the Hang Seng index in Hong Kong was down 0.9%, as financial markets in Hong Kong re-opened after a long weekend. The S&P/ASX 200 in Sydney closed up 0.2%.
Gold was quoted at USD1,975.71 an ounce early Tuesday, slightly lower than USD1,977.60 on Monday.
Brent oil was trading at USD90.16 a barrel, lower than USD91.05.
In Tuesday's UK corporate calendar, Barclays releases its third-quarter results, while Anglo American and Bunzl both post trading statements.
The economic calendar has flash purchasing managers' index releases coming out for the EU, Germany, the UK and the US.
By Elizabeth Winter, Alliance News senior markets reporter
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