London’s main index nudged upwards in early trading on Tuesday, buoyed by a rally in tech stocks and stable energy prices, while Wall Street began the day flat amid continued investor caution over geopolitical tensions and economic signals.
The FTSE 100 rose by 0.3% in the opening hours, with semiconductor firms, fintechs, and digital infrastructure players leading the gains. Sentiment remained broadly steady despite lingering concerns over the global security climate following recent US military action in the Middle East. Investors are watching oil and defence-related stocks carefully, although Brent crude prices stabilised just below $86 a barrel.
Mid-cap shares on the FTSE 250 also recorded modest gains, supported by a positive earnings report from a leading UK-based industrial equipment provider. The pound held firm against the dollar, hovering around $1.27, reflecting steady confidence in the Bank of England’s next interest rate move, with markets still betting on a cut later this year.
In the US, the major indices opened largely flat after a mixed set of data from the housing and consumer sectors. The S&P 500 was unchanged in early trade, while the Nasdaq Composite dipped slightly by 0.1% despite strength in megacap tech names like Microsoft and Alphabet. The Dow Jones Industrial Average also showed little movement, as investors absorbed new figures pointing to a cooling in consumer confidence for June.
Traders are increasingly focused on the next round of inflation data due later this week, which will shape expectations for the Federal Reserve’s timeline for easing interest rates. While recent statements from Fed officials have emphasised patience, market bets remain divided, with many still anticipating at least one cut before the US presidential election in November.
Meanwhile, bond yields across both the UK and US held steady, signalling a pause in recent volatility driven by central bank speculation. Analysts suggest that while equity markets may be rangebound in the short term, momentum in technology and AI-related stocks continues to offer some upside.
In corporate news, UK-listed firms with significant exposure to the US—such as financial services and mining groups—saw marginal early gains, helped by stable US futures and a relatively calm Treasury market. Eyes are also on upcoming second-quarter earnings in both regions, with investors looking for signs of margin resilience amid slowing demand.
As the day unfolds, attention will turn to Federal Reserve Chair Jerome Powell’s scheduled remarks, which could provide further insight into the Fed’s inflation outlook and policy trajectory. In London, economic data releases this week are expected to offer more clarity on manufacturing performance and consumer health.
REFH – newshub finance
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