(Alliance News) - Stocks in London are set to open lower on Tuesday as investors eagerly await words from Federal Reserve Chair Jerome Powell, with the week's first batch of US labour market data also in focus.
The job openings and labour turnover survey reported at 1500 BST could provide an insight into the health of the US employment market ahead of Friday's official nonfarm payrolls data, and Wednesday's precursor ADP jobs report.
IG says futures indicate the FTSE 100 to open 21.6 points lower, 0.3%, at 8,145.16 on Tuesday. The index of London large-caps closed up just 2.64 at 8,166.76 on Monday.
In China on Tuesday, the Shanghai Composite traded 0.2% higher in afternoon dealings, while the Hang Seng in Hong Kong was up 0.4%. Tokyo's Nikkei 225 was 1.1% higher, though Sydney's S&P/ASX 200 was down 0.2%.
"Attention is now focused on Federal Reserve Chair Jerome Powell's remarks at the Sintra conference later today and the release of US JOLTS job openings data. Liquidity remains thin ahead of the US holiday on Thursday and key jobs data on Friday, marking the start of the new quarter," ActivTrades analyst Anderson Alves commented.
The pound was quoted at USD1.2634 early Tuesday, down from USD1.2639 at the time of the London equities close on Monday. The euro firmed to USD1.0727 from USD1.0723. Against the yen, the dollar was trading at JPY161.64, up from JPY161.58.
In New York overnight, the Dow Jones Industrial Average rose 0.1%, the S&P 500 added 0.3% and the Nasdaq Composite shot up 0.8%.
President Joe Biden warned Monday that the US Supreme Court's landmark ruling on presidential immunity sets a "dangerous precedent" that Donald Trump would exploit if elected in November.
The conservative-dominated high court ruled that Trump – and all presidents – enjoy "absolute immunity" from criminal prosecution for "official acts" taken while in office, but can still face criminal penalties for "unofficial acts."
"For all practical purposes today's decision almost certainly means there are no limits to what a president can do. This is a fundamentally new principle, and it's a dangerous precedent," Biden said in a speech at the White House.
Trump is facing criminal charges over his attempts to overturn his 2020 election loss to Biden, but that trial had been put on hold while the Supreme Court considered his immunity claims.
The 6-3 ruling on Monday, split along ideological lines, is set to further delay proceedings in that case, almost certainly to sometime after voters head to the polls in November.
Political developments in the UK will also be in focus, with polls opening in around 48 hours.
The outcome of the election is not a "forgone conclusion" and the decision of a small number of voters could swing it away from a huge Labour majority, UK Prime Minister Rishi Sunak is to say.
Multiple opinion polls have suggested the Labour party is on course for a huge majority in Parliament following the election.
The Conservatives have dubbed this an unaccountable "supermajority", in a bid to dissuade voters who would usually back them from switching to rival political parties.
Speaking in Oxfordshire, the prime minister will say: "The outcome of this election is not a foregone conclusion. If just 130,000 people switch their vote and lend us their support, we can deny Starmer that supermajority."
Tuesday's economic calendar has a eurozone inflation reading at 1000 BST.
Looking ahead to the data, Commerzbank analyst Antje Praefcke commented: "We continue today with the inflation figures from the eurozone for June. Yesterday's data from Germany, which showed some easing, mainly due to energy prices, gave a first indication. Our experts expect the headline rate in the eurozone to fall further to 2.5%, but the core rate is likely to remain at 2.9%. All in all, today's data should also underpin the ECB's expectations, which by the way also anticipate a temporary rise in the headline rate in the coming months, that inflation will move towards the 2% target over time and thus support market expectations for further interest rate cuts."
Tuesday's UK corporate calendar has a trading statement from grocer Sainsbury's.
Brent oil was quoted at USD86.78 a barrel early Tuesday, rising from USD86.18 at the time of the London equities close on Monday. Gold was quoted at USD2,328.34 an ounce, up slightly from USD2,327.85.
By Eric Cunha, Alliance News news editor
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