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Highlights:
FTSE 100 futures indicate a sharp rise following US tariff adjustments
President Trump increases tariffs on China while easing on other nations
Global markets rebound; Asia and Wall Street close significantly higher
London markets are poised to open on a positive note Thursday, as global sentiment steadies in response to a shift in US trade policy. President Donald Trump announced a halt on new tariffs for most countries, while increasing duties on Chinese goods to 125%, citing strained bilateral relations.
While tensions with China escalated, the broader pause in tariff enforcement has offered relief to global markets, contributing to a rebound in major indices. The FTSE 100 is forecast to open up by 396.0 points, or 5.2%, after closing 2.9% lower at 7,679.48 on Wednesday.
Commenting on the volatility, Swissquote’s Ipek Ozkardeskaya remarked on the unpredictable direction of recent US policy: “The traditional policy script appears to be discarded. Trump’s presidency is marked by a degree of unpredictability that continues to challenge market participants.” She also noted that markets may continue to recover if given a period of relative calm to process the changes.
Currency markets reflected moderate fluctuations. Early Thursday, sterling was trading at USD1.2857, up from USD1.2786 at the previous close. The euro declined to USD1.0982 from USD1.1060, while the dollar gained strength against the yen, reaching JPY146.65 compared to JPY144.86 on Wednesday.
On Wall Street, indices finished strongly. The Dow Jones Industrial Average rose by 7.9%, the S&P 500 advanced 9.5%, and the Nasdaq Composite saw a sharp increase of 12%.
Asian markets responded in kind during Thursday trading. Japan’s Nikkei 225 climbed 8.2%, the Shanghai Composite added 1.2%, and Hong Kong’s Hang Seng Index grew by 2.5%. Meanwhile, Australia’s S&P/ASX 200 ended the session 4.6% higher.
Commodity prices also trended upwards. Gold was quoted at USD3,115.83 per ounce early Thursday, improving from USD3,085.53 a day earlier. Brent crude oil rose to USD64.72 a barrel from USD60.41.
Investors will also be watching corporate updates, with full-year results expected from Tesco and TT Electronics.
The economic calendar features key data, including consumer price inflation from Ireland and the United States, alongside the latest US jobless claims report.
