The FTSE 100 is predicted to open up in a tentative fashion after the long weekend and ahead of the expected signing of a new trade deal between the UK and India.
London’s blue-chip benchmark is heading for a five-point decline, according to spread-betters on the IG platform.
Yesterday, while UK traders relaxed in the wind and rain of the bank holiday, Wall Street had a mixed time, with the Dow Jones up 238 points or 0.7% to above 34,000 mark and the S&P 500 rising 0.3% but the Nasdaq dropping 0.5%.
US bond yields also moved lower, the US dollar gave up much of its month-end gains from last week and gold powered higher to the brink of $1,800.00 an ounce.
The blame for all this was ISM manufacturing PMI data missing expectations quite noticeably.
“If nothing else, it shows just how much financial markets are wedded to the US recovery story leading the world out of the pandemic recession,” said market analyst Jeffrey Halley at Oanda.
The UK will have its own dose of manufacturing PMI data later this morning, with the market expecting a reading of 60.7 for April.
Ahead of its Monetary Policy Committee’s decision later in the week, the Bank of England will also be releasing a range of lending data.
There are also sure to be headlines about Prime Minister Boris Johnson’s video conference meeting with Indian counterpart Narendra Modi as the pair are set to agree various final details on the pathway towards a new free trade deal, which Downing Street said would create 6,500 British jobs and contain more than £533mln of new Indian investment into the UK, in sectors such as health and technology.
A new trade partnership is expected to lower non-tariff barriers on fruit and medical devices, with the expectation that this will allow British businesses to export more easily to India.
Around the markets
Pound – down 0.2% at US$1.3877
Gold – up 1.0% at US$1,786.67
Oil – Brent crude down 0.2% at US$67.40
Bitcoin – down 3.4% to US$56,049.27
6.50am: Early Markets – Asia / Australia
Stocks in the Asia-Pacific region were higher on Tuesday as Reserve Bank of Australia decided to maintain its current policy settings, including keeping the cash rate at 0.1%.
The markets in China, Japan and Thailand are closed on Tuesday for holidays.
The Hang Seng index in Hong Kong rose 0.47% while South Korea’s Kospi gained 0.34%.
Shares in Australia advanced, with the S&P/ASX 200 trading 0.47% higher.
Proactive Australia news:
Archer Materials Ltd’s (ASX:AXE) (OTCMKTS:ARRXF) (FRA:38A) shares are trading about 5% higher intra-day after executing a new quantum computing agreement with International Business Machines Corporation (NYSE:IBM).
Meteoric Resources NL (ASX:MEI) is “intersecting the right rocks and alteration styles”, managing director Andrew Tunks says of the first drill hole to test a major IP chargeability anomaly detected in late 2020 at Juruena Gold-Copper Project in Brazil.
Kin Mining NL (ASX:KIN) (FRA:8KM) has received further wide, high-grade assays from ongoing reverse circulation (RC) drilling at the Cardinia Hill deposit within the Cardinia Gold Project (CGP), near Leonora in Western Australia.
Technology Metals Ltd (ASX:TMT) (FRA:TM6) has defined a simplified process flowsheet for the Yarrabubba Iron-Vanadium Project in Western Australia’s Mid-West to deliver high purity magnetite at a 75 to 90 micron grind size and at a rate of 1.5 million tonnes per annum.