FTSE 100 to rise despite US tech slump

(Alliance News) - London's FTSE 100 is set to open ever-so-slightly higher on Tuesday, shaking off some woes for US technology shares overnight.

IG says futures indicate the FTSE 100 to open 6.7 points higher, 0.1%, at 8,288.25 on Tuesday. The index of London large-caps closed up 43.83 points, 0.5%, at 8,281.55 on Monday.

On Monday, the Dow Jones Industrial Average rose 0.7%, while the S&P 500 fell 0.3% and the Nasdaq Composite tumbled 1.1%.

In China on Tuesday, the Shanghai Composite traded 0.1% lower, while the Hang Seng in Hong Kong was up 0.6%. The Nikkei 225 traded 0.8% higher in late dealings, and the S&P/ASX 200 up 1.2%.

The US labour market is at a point where it could become a greater issue for the Federal Reserve going forward, a senior official at the central bank said Monday.

So far, it has managed to sharply reduce inflation while causing only a slight easing to the labor market, and the unemployment rate to remain close to a half-century low.

But historical data suggest that this "benign outcome" could be less likely in future, with the potential for a greater rise in unemployment, San Francisco Fed President Mary Daly said Monday.

"Going forward, this tradeoff may not be as favourable," Daly, who has a vote on the Fed's rate-setting committee this year, said in prepared remarks for an event in San Francisco.

She highlighted the relationship between job vacancies in the economy and the unemployment rate – known as the Beveridge curve – saying it suggests that "future labour market slowing could translate into higher unemployment, as firms need to adjust not just vacancies but actual jobs."

The pound was quoted at USD1.2695 early Tuesday in London, edging up from USD1.2691 at the time of the European equities close on Monday. The euro stood at USD1.0742, rising from USD1.0728. Against the yen, the dollar was trading at JPY159.35, falling from JPY159.69.

Brent oil was quoted at USD85.17 a barrel, up from USD85.07. Gold was quoted at USD2,326.41 an ounce, down from USD2,331.10.

Tuesday's economic calendar has a US consumer confidence reading at 1500 BST.

The local corporate diary has annual results from Warehouse REIT.

By Eric Cunha, Alliance News news editor

Comments and questions to [e-mail]

Copyright 2024 Alliance News Ltd. All Rights Reserved.