FTSE 100 live: London markets set to open higher, mirroring Asian peers

The latest updates on the FTSE 100 and London’s financial markets from City A.M.’s newsroom in the heart of the City of London.

Asian stock markets had minimal activity on Tuesday. Hong Kong’s Hang Seng Index surged by 0.8 per cent, led by Chinese tech stocks, propelling the Hang Seng Tech Index up by 1.3 per cent.  

Conversely, South Korea’s Kospi Index remained steady, despite the government’s plans for tax incentives to boost market values. 

Japan’s Nikkei N225 slipped by 0.3 per cent, erasing some of the gains from the previous day’s 0.7 per cent increase. 

In the US, Wall Street futures climbed before the market reopened following a public holiday. S&P 500 futures gained 0.1 per cent, with Nasdaq futures up by 0.2 per cent, as investors awaited updates from Federal Reserve officials on interest rates. 

Australia’s S&P/ASX 200 Index fell by 0.2 per cent following the release of data showing weak retail sales growth in April. 

Oil prices held steady, with Brent crude inching up by 0.1 per cent to $83.19 per barrel. Gold prices continued their upward trend for the third consecutive day, increasing by 0.1 per cent to $2,354.23 per ounce. 

ECB officials highlighted room for rate cuts due to slowing inflation, hinting at a June 6 reduction. Market already expects two cuts by October. French governor confident about June cut, noting options ahead. ECB economist urges caution to avoid inflation dip. 

UK retailer prices hit a 2-year low in May, signalling economic improvement. The British Retail Consortium reported a slowdown to 0.6 per cent, below recent averages. Additionally, food prices dropped to 3.2 per cent from 3.4 per cent last month. 

Japanese corporate service prices surged the most since 2015 in April due to higher labor costs, which is positive for policymakers aiming to boost demand. The Corporate Services Price Index (CSPI) rose 2.8 per cent year-on-year, compared to 2.4 per cent the previous month. Monthly, prices increased by 0.7 per cent, slightly slower than March’s 0.9 per cent growth. 

This week, key economic updates are expected. Revised Q1 GDP figures for the US will be released on Thursday, while India’s Q4 figures will follow on Friday. Additionally, the US Federal Reserve’s core PCE price index for April is set for publication on May 31.  

As the earnings season wraps up, notable reports include those from Dell, Best Buy, and Costco. Wednesday holds significance for BHP, with a 5 pm BST deadline for a final bid for Anglo American.  

CoinDesk Consensus, a major cryptocurrency event, is also scheduled for Wednesday.