London pre-open: Stocks seen up amid US-EU trade deal optimism
By Michele Maatouk
Date: Thursday 24 Jul 2025
(Sharecast News) - London stocks were set to rise at the open on Thursday following a record close the day before, amid optimism over a US-EU trade deal.
The FTSE 100 was called to open around 50 points higher.
Stephen Innes, managing partner at SPI Asset Management, said: "The US-Japan trade pact - once feared to bring a 25% levy - has landed at a market-pleasing 15%, including on autos. That's not just a win for Japan; it's a lifeline for global risk appetite.
"And now, with rumours swirling that a US-EU accord could mirror that same 15% figure, stocks have found fresh air under their wings. A 30% threat is quickly becoming a 15% reality - and that's a world of difference on Wall Street's Electric Avenue.
"The S&P 500 ripped to all-time highs as traders cheered the prospect that the worst-case tariff scenarios may have been priced too pessimistically. The art of the deal is alive and well, and the fog surrounding Trump's tariff doctrine is beginning to lift.
"The EU, by all accounts, is sprinting toward an agreement that would sidestep a trade war with the US, while Treasury Secretary Bessent fanned the flames of optimism with hints of China progress.
"The tariff average settling at 15% - if achieved - would be seen as damage control rather than destruction. Markets, ever forward-looking, are repositioning for a softer landing."
On home shores, a survey showed that consumer sentiment softened in July, as rising prices undermined confidence.
According to data from the British Retail Consortium's latest consumer sentiment monitor, expectations for state of the economy over the next three months eased to -33 from -28 in June.
The personal financial situation also worsened, down two points to -7, while saving edged up -3 from -4.
Expectations for spending overall, meanwhile, rose to 16 from 12, and on retail specifically to 3 from 2.
The UK economy is battling sluggish growth alongside an uptick in inflation.
The consumer price index now stands at 3.6%, ahead of the Bank of England's long-term target of 2%. Food price inflation is rising even more sharply, however, reaching 5.2% in the four weeks to 13 July, according to recent data from Worldpanel by Numerator.
As a result, interest rates remain elevated. The BoE has cut the cost of borrowing only twice this year, to 4.25%, although another reduction is widely expected next month.
Helen Dickinson, chief executive at the BRC, said: "It is little surprise that consumer confidence fell in July.
"Rising inflation, particularly for food, has put more pressure on personal finances, increasing the cost of living. This has caused spending expectations to rise, particularly for groceries, as households anticipate higher prices at the till."
Among individual categories, consumers expected spending to rise most notably in food and groceries, up from 20 in June to 25.
On the corporate front, investors had a raft of results to sink their teeth into, from the likes of Lloyds, Vodafone and Reckitt, among others.
Telecommunications giant BT said it has made a "solid" start to the year despite seeing total adjusted revenues slip 3% year-on-year to £4.87bn and adjusted earnings drop 1% to £2.05bn.
Reported pre-tax profits were 10% lower at £468.0m, primarily due to an increase in net finance costs and depreciation and amortisation.
Energy and services firm Centrica said it swung to a statutory operating loss in the six months ended 30 June.
Centrica reported a statutory operating loss of £69.0m in H125, down from H124's £1.67bn operating profit and including a net loss on re-measurements of derivative energy contracts and impairments of assets of £618.0m.
Adjusted underlying earnings fell from £1.43bn to £900.0m amid "a challenging backdrop".
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