London pre-open: FTSE set for weaker start despite US-China talks
Stocks in the UK are set to start the morning a tad lower despite a break in the clouds as regards US-China trade talks.
Overnight, Beijing and Washington announced that US Treasury Secretary, Scott Bessent, and the country's Trade Representative, Jamieson Greer, would hold talks with their Chinese counterparts, in Switzerland, at the weekend.
Chinese authorities also carried out a 50 basis point cut in lenders' reserve requirement ratio, while the seven-day reverse repo rate was reduced to 1.4%.
"Toss in relending tools for everything from eldercare to tech and SMEs, and it's clear: Beijing is throwing liquidity at the wall, hoping something sticks," said Stephen Innes, managing partner at SPI Asset Management.
"But the market's reaction? Predictably muted."
As of 0633 GMT, futures tracking the FTSE 100 were slipping by 15.50 points to 8,578.0.
In parallel, the S&P 500 mini futures contract was trading up by 23.50 points at 5,649.25.
June gold futures on COMEX were off by 0.67% to $3,400/oz..
Also on investors' radar was an Indian jet strike against what New Delhi described as terrorist training camps inside Pakistan, although both countries had reportedly signalled their desire not to escalate.
Still ahead for later in the day, rate-setters in the US were due to meet after the close of London markets.
No change in rates was anticipated, but investors were keen for any hints that rate cuts might be forthcoming in the third quarter.
Defence engineer BAE reports in line trading
BAE Systems said trading year-to-date was in line with management expectations and reaffirmed its full-year guidance. The FTSE 100 defence specialist noted a strong order backlog and robust pipeline, providing visibility and underpinning long-term growth. It also noted continued investment to support expansion and stated it is well positioned to benefit from increased defence spending.
Online rail ticketing platform Trainline reported a sharp rise in adjusted core earnings on the back of a 12% jump in sales. Adjusted EBITDA rose 30% to £159m, while operating profit surged by 54% to £86m. Group net ticket sales came in at £5.9bn.
Disclaimer & Declaration of Interest
The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. Vox Markets may receive payment from companies mentioned for enhanced profiling or publication presence. The writer may or may not hold investments in the companies under discussion.