FTSE 100 LIVE: Stocks rise as traders await UK spending review and US-China trade update
The FTSE 100 (^FTSE) and European stocks crept up on Wednesday morning as chancellor Rachel Reeves prepared to deliver the government's spending review, outlining day-to-day departmental budgets for the next three years.
It has already been confirmed that defence spending will rise to 2.5% of national income by 2027, and there are reports of an extra £30bn for the NHS.
Traders are also awaiting details of the US-China trade agreement and confirmation that it will satisfy both US president Donald Trump and his Chinese counterpart Xi Jinping.
Negotiators have agreed on a framework of how to implement the deal reached at talks in Geneva last month.
The main details came from commerce secretary Howard Lutnick, who said: 'We do absolutely expect that the topic of rare earth minerals and magnets' will be resolved and that export controls implemented by the US should come down as China approves relevant export licences.
China's trade representative Li Chenggang said the US and Chinese delegations will now take the proposal back to their respective leaders, with Lutnick noting that 'once the presidents approve it, we will then seek to implement it'.
London's benchmark index (^FTSE) was 0.2% higher in early trade — this takes the index towards its record high of 8,908 points set in March before trade war turmoil hit the markets.
Germany's DAX (^GDAXI) rose 0.1% and the CAC (^FCHI) in Paris headed 0.3% into the green
The pan-European STOXX 600 (^STOXX) was up 0.05%, hovering just above the flatline
Wall Street is set for a negative start as S&P 500 futures (ES=F), Dow futures (YM=F) and Nasdaq futures (NQ=F) were all in the red.
The pound was 0.1% down against the US dollar (GBPUSD=X) at 1.3487
Follow along for live updates throughout the day:
US and Chinese negotiators have agreed on a framework of how to implement the agreement reached at talks in Geneva last month.
The main details came from commerce secretary Lutnick, who said: 'We do absolutely expect that the topic of rare earth minerals and magnets' will be resolved and that export controls implemented by the US should come down as China approves relevant export licenses.
China's trade representative Li Chenggang added that the US and Chinese delegations will now take the proposal back to their respective leaders, with Lutnick noting that 'once the presidents approve it, we will then seek to implement it'.
Jim Reid at Deutsche Bank (DB) said:
Stocks in Asia were higher overnight, supported by hopes for improved trade relations with the US, with the Nikkei (^N225) rising 0.6% on the day in Japan, thanks to a boost for tech stocks.
Meanwhile the Hang Seng (^HSI) climbed 0.8% in Hong Kong, the Shanghai Composite (000001.SS) was 0.5% up by the end of the session, and the KOSPI (^KS11) also advanced 1.2%, reaching a new 11-month high.
Early morning data showed that producer prices in Japan increased by 3.25% year-on-year in May, a deceleration from a revised 4.1% rise the previous month. This fell short of the market consensus of 3.5%, and the lowest annual rate observed since last September.
Across the pond on Wall Street, the S&P 500 (^GSPC) rose 0.6%, and the tech-heavy Nasdaq (^IXIC) was 0.6% higher. The Dow Jones (^DJI) also gained 0.3%.
Good morning, and welcome back to our markets live blog. As usual we will be taking a deep dive into what's moving markets and happening across the global economy.
In day ahead traders will be looking out for the US May CPI release as well as the federal budget balance data. Also worth mentioning that the US 10-yr treasury auction will be held. We'll also get the Canada April building permits.
In terms of central bank speakers, we'll hear the ECB's Lane and Cipollone speak.
Here's a quick snapshot of what's on the agenda for today:
7am: Trading updates: Fuller, Smith & Turner, Molten Ventures, VP Group, Ramsdens
12pm: US weekly mortgage applications data
12.30pm: Chancellor Rachel Reeves to deliver UK spending review
1.30pm: US inflation report for MayUS and Chinese negotiators have agreed on a framework of how to implement the agreement reached at talks in Geneva last month.
The main details came from commerce secretary Lutnick, who said: 'We do absolutely expect that the topic of rare earth minerals and magnets' will be resolved and that export controls implemented by the US should come down as China approves relevant export licenses.
China's trade representative Li Chenggang added that the US and Chinese delegations will now take the proposal back to their respective leaders, with Lutnick noting that 'once the presidents approve it, we will then seek to implement it'.
Jim Reid at Deutsche Bank (DB) said:
Stocks in Asia were higher overnight, supported by hopes for improved trade relations with the US, with the Nikkei (^N225) rising 0.6% on the day in Japan, thanks to a boost for tech stocks.
Meanwhile the Hang Seng (^HSI) climbed 0.8% in Hong Kong, the Shanghai Composite (000001.SS) was 0.5% up by the end of the session, and the KOSPI (^KS11) also advanced 1.2%, reaching a new 11-month high.
Early morning data showed that producer prices in Japan increased by 3.25% year-on-year in May, a deceleration from a revised 4.1% rise the previous month. This fell short of the market consensus of 3.5%, and the lowest annual rate observed since last September.
Across the pond on Wall Street, the S&P 500 (^GSPC) rose 0.6%, and the tech-heavy Nasdaq (^IXIC) was 0.6% higher. The Dow Jones (^DJI) also gained 0.3%.
Good morning, and welcome back to our markets live blog. As usual we will be taking a deep dive into what's moving markets and happening across the global economy.
In day ahead traders will be looking out for the US May CPI release as well as the federal budget balance data. Also worth mentioning that the US 10-yr treasury auction will be held. We'll also get the Canada April building permits.
In terms of central bank speakers, we'll hear the ECB's Lane and Cipollone speak.
Here's a quick snapshot of what's on the agenda for today:
7am: Trading updates: Fuller, Smith & Turner, Molten Ventures, VP Group, Ramsdens
12pm: US weekly mortgage applications data
12.30pm: Chancellor Rachel Reeves to deliver UK spending review
1.30pm: US inflation report for May
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