LONDON MARKET EARLY CALL: London called lower on weakened UK sentiment

(Alliance News) - London's FTSE 100 is set to open lower on Thursday, as talks progress towards a potential ceasefire in Ukraine and a UK data reading shows weakening consumer sentiment.

IG says futures indicate the FTSE 100 to open down 3.9 points, 0.1%, at 8,399.28 on Thursday. The index of London large-caps closed up 74.58 points, 0.9%, at 8,403.18 on Wednesday.

Sterling was quoted at USD1.3272 early Thursday, slightly down from USD1.3274 at the London equities close on Wednesday.

The euro traded at USD1.1343 early Thursday, lower than USD1.1367 late Wednesday. Against the yen, the dollar was quoted higher at JPY142.75 versus JPY142.42.

UK consumer sentiment weakened sharply in April, as fears over a potential trade war weighed heavily on economic expectations, new survey data from the British Retail Consortium showed on Wednesday.

According to the BRC-Opinium consumer sentiment monitor, expectations for the state of the UK economy over the next three months fell to a net score of negative 48, down significantly from negative 35 in March. Expectations for personal finances also worsened, dropping to negative 16 from negative 10.

The survey was conducted shortly after US President Donald Trump's proposed "Liberation Day" tariffs, which triggered concerns about escalating global trade tensions.

UK Chancellor Rachel Reeves has travelled to the US capital for the International Monetary Fund's spring meetings of G7 and G20 finance ministers.

But she is also expected to meet US Treasury Secretary Scott Bessent on Friday in an attempt to make progress on negotiations for a UK-US economic deal aimed at mitigating the impact of tariffs announced by Trump earlier this month.

Meanwhile, Wednesday saw Reeves announce the government would take action to stop high street retailers being "undercut" by cheap imports, beefing up the Trade Remedies Authority and reviewing the rules on low-value imports.

In the US on Wednesday, Wall Street ended in the green, with the Dow Jones Industrial Average up 1.1%, the S&P 500 1.7% higher and the Nasdaq Composite edging up 2.5%.

Trump said new tariffs on imports from China could be set in "two or three weeks," as the trade dispute between the world's two largest economies continues.

"If we don't have a deal with a company or a country, we're going to set the tariff. We just set the tariff," Trump said in the Oval Office.

In response to a reporter asking whether the US and China were having direct talks, Trump said "yeah, of course, every day." Asked how soon he intended to reduce the tariffs on Chinese imports to the US, Trump said "that depends on them."

President Trump also on Wednesday said a deal to halt the Ukraine war was "very close", but hit out at Ukrainian leader Volodymyr Zelensky over his refusal to formally cede Crimea to Russia.

Trump's comments came as Vice President JD Vance warned that the US would "walk away" unless Russia and Ukraine agree on a peace deal. US media has reported that Trump is ready to accept recognition of annexed land in Crimea as Russian territory, but Zelensky told journalists this week it was Ukrainian territory and recognising it as Russian "is against our constitution".

"It's inflammatory statements like Zelensky's that makes it so difficult to settle this War," Trump said in a post on Truth Social, adding that Zelensky's remarks will do nothing but prolong the "killing field".

In Asia on Thursday, the Nikkei 225 index in Tokyo was up 0.5%. In China, the Shanghai Composite faded 0.1%, while the Hang Seng index in Hong Kong slipped 1.1%. The S&P/ASX 200 in Sydney closed up 0.8%.

Gold was quoted up at USD3,324.03 an ounce early Thursday, against USD3,273.46 on Wednesday.

Brent oil was trading at USD65.16 a barrel early Thursday, down from USD65.74 late Wednesday.

In Thursday's corporate calendar, trading statements from miner Anglo American, consumer products firm Unilever and wealth manager St James's Place.

In the economic calendar on Thursday, the Ifo business climate survey in Germany, plus US durable goods orders data and the weekly jobless claims report.

By Emily Parsons, Alliance News reporter

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