(Alliance News) – London’s FTSE 100 is called to open lower on Thursday, after stocks in New York tumbled overnight, and equities in Asia struggled.
IG says futures indicate the FTSE 100 to open 42.0 points lower, 0.5%, at 8,744.46 on Thursday. The index of London large-caps closed up 5.34 points, 0.1%, at 8,786.46.
In New York on Wednesday, the Dow Jones Industrial Average closed down 1.9%, the S&P 500 lost 1.6% and the Nasdaq Composite fell 1.4%.
In Tokyo on Thursday, the Nikkei 225 was 0.9% lower. In China, the Shanghai Composite was down 0.1%. The Hang Seng Index in Hong Kong shed 0.8%. In Sydney, the S&P/ASX 200 fell 0.4%.
“Wall Street endured a broad-based sell-off, triggered by growing concerns over the fiscal impact of US tax reforms and a weak government bond auction. This marks a notable shift in market dynamics, with price action now increasingly linked to fiscal concerns rather than being solely driven by yield differentials, as seen in recent years. Losses on Wall Street deepened after a poorly received 20-year Treasury auction, which saw a hefty tail and weak demand. This pushed long-end yields sharply higher, steepened the curve, and further amplified risk-off sentiment across global markets,” ActivTrades analyst Anderson Alves commented.
Republicans announced Wednesday they will vote early Thursday on US President Donald Trump’s sprawling domestic policy mega-bill pairing tax relief with spending cuts that critics say would decimate health care while ballooning the debt.
The “One Big, Beautiful Bill Act” would usher into law Trump’s vision for a new “Golden Age,” achieved through cuts to public services to pay for a 10-year extension of his 2017 tax cuts.
But it is dangling by a thread, with independent analysts warning it will increase the deficit by as much as USD4 trillion over a decade, rattling fiscal hawks who say the country is careening toward bankruptcy.
The yield on the US 10-year Treasury was quoted at 4.59% early Thursday UK time, widening from 4.54% at the time of the London equities close on Wednesday. The yield on the US 30-year Treasury widened to 5.09% from 5.02%.
The pound traded at USD1.3429 early Thursday, down from USD1.3443 at the time of the London equities close on Wednesday. The euro faded to USD1.1331 from USD1.1389. Against the yen, the dollar fell to JPY143.30 from JPY143.63.
A barrel of Brent fell to USD64.94 a barrel from USD65.08. Gold rose to USD3,330.54 an ounce from USD3,312.03.
Thursday’s global economic calendar has a slew of composite PMI readings, the Ifo business climate report in Germany, UK public sector borrowing numbers and a US weekly initial jobless claims print.
The domestic corporate calendar on Thursday has full-year results from property company British Land, telecommunications firm BT, and half-year results from budget airline easyJet.
By Eric Cunha, Alliance News news editor
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