London’s FTSE 100 is expected to rise slightly today, recovering from Monday’s losses. Trade discussions between the US and China remain a key focus. Investors are also awaiting the release of UK unemployment figures this morning.
IG predicts the FTSE 100 will open 3.2 points higher at 8,835.48. On Monday, the index of London’s largest companies decreased by 5.63 points, or 0.1%, closing at 8,832.28.
Early Tuesday, the pound fell to USD1.3543, down from USD1.3556 at Monday’s close. The euro also declined to USD1.1413 from USD1.1419. The dollar increased against the yen, reaching JPY144.50 from JPY144.42.
Brent oil prices rose to USD67.13 a barrel, up from USD66.88. Gold prices decreased to USD3,318.39 per ounce, down from USD3,329.84.
The yield on the US 10-year Treasury was 4.47% early Tuesday in the UK, down from 4.49% at Monday’s close. The 30-year yield decreased to 4.93% from 4.96%.
US and Chinese officials are continuing trade negotiations in London for a second day. The goal is to strengthen the current tariff truce, which has been strained by export restrictions.
The talks began Monday at Lancaster House, following initial discussions in Geneva last month.
Chinese Vice Premier He Lifeng is leading the Chinese delegation, including Commerce Minister Wang Wentao and China International Trade Representative Li Chenggang.
Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and Trade Representative Jamieson Greer are representing the US.
ActivTrades analyst Anderson Alves noted that markets could react strongly if the talks are paused, cancelled, or fail to reach an agreement. Further escalation by the US could negatively impact risk assets, as optimistic expectations have grown since the 90-day pause was agreed upon.
On Monday, the Dow Jones Industrial Average in New York closed slightly lower. The S&P 500 rose 0.1%, and the Nasdaq Composite increased by 0.3%.
In Tokyo on Tuesday, the Nikkei 225 increased by 0.6%. In China, the Shanghai Composite decreased by 0.7%, reversing gains from the morning. The Hang Seng in Hong Kong also fell by 0.3%. Financial markets in Sydney reopened after a holiday, with the S&P/ASX 200 rising by 0.7%.
Today’s economic calendar includes UK unemployment and average earnings data.
Bellway and FirstGroup are scheduled to release trading statements today.
Additional Data:
The UK’s jobless rate has risen to 4.6% in April, according to the Office for National Statistics (ONS). This is higher than the 4.5% recorded in the first three months of 2025 and the highest rate since April-June 2021, when it stood at 4.7%. The number of payrolled employees also fell by 115,000 between April 2024 and April 2025.
Average weekly earnings, excluding bonuses, increased by 5.2% in the three months to April, while total earnings, including bonuses, grew by 5.3%. However, these figures are slightly lower than expected. The ONS data includes the period when employer national insurance contributions and the national living wage increased, which some groups had warned would lead to job losses and price rises.
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