(Alliance News) - Stocks in London are set to open lower on Tuesday, as a slow start to the week continues, with investors having simmering global tensions to contend with.
Meanwhile, the US, UK and New Zealand have accused Beijing-backed cyber groups of being behind a series of attacks against lawmakers and key democratic institutions - allegations that prompted angry Chinese denials.
IG says futures indicate the FTSE 100 to open 20.9 points lower, 0.3%, at 7,896.67 on Tuesday. The index of London large-caps closed down 13.35 points, 0.2%, at 7,917.57 on Monday. The downbeat start to the week is a stark contrast to the last, when equities were pushed higher by hope that interest rate cuts from major central banks are not far away.
Sterling was quoted at USD1.2655 early Tuesday, higher than USD1.2606 at the London equities close on Monday. The euro traded at USD1.0850 early Tuesday, higher than USD1.0817 late Monday. Against the yen, the dollar was quoted higher at JPY151.34 versus JPY151.27.
In the US on Monday, Wall Street ended lower, with the Dow Jones Industrial Average down 0.4%, while the S&P 500 and the Nasdaq Composite both lost 0.3%.
In rare and detailed public accusations against China – Washington, London and Wellington described a series of cyber breaches over the last decade or more, in what appeared to be a concerted effort to hold Beijing accountable.
The US Justice Department charged seven Chinese nationals over what it said was a 14-year "prolific global hacking operation" designed to aid China's "economic espionage and foreign intelligence objectives."
Washington said a unit, dubbed APT31, was behind the attacks, describing it as a "cyberespionage program" run by China's powerful Ministry of State Security out of the central city of Wuhan.
With the UK expected to hold a general election within months, UK Deputy Prime Minister Oliver Dowden also made a shock announcement that "a Chinese state-affiliated entity" had likely "compromised" the country's Electoral Commission.
In Asia on Tuesday, the Nikkei 225 index in Tokyo was marginally down. In China, the Shanghai Composite was up 0.2%, while the Hang Seng index in Hong Kong was up 1.6%. The S&P/ASX 200 in Sydney closed down 0.4%.
Japan's services inflation was steady in February, according to official Bank of Japan data. The BoJ data showed that the services producer price index in Japan rose 2.1% annually in February, matching the pace seen in January. The BoJ's own target for inflation is 2%.
The fastest price rises were seen within transport services, including a double-digit annual jump for ocean freight transportation and domestic air passenger transportation. Meanwhile, the cost of advertising services eased 1.1% from the prior year.
On a monthly basis, services prices edged up 0.2% in February, having fallen 0.5% in January.
The Bank of Japan had kicked off the week's central banking bonanza with a historic 10 basis point rate hike.
Gold was quoted at USD2,171.90 an ounce early Tuesday, higher than USD2,164.77 on Monday. Brent oil was trading at USD86.00 a barrel, higher than USD85.80 late Monday.
In Tuesday's corporate calendar, Paddy Power owner Flutter Entertainment announces full-year results, engineering company Smiths Group releases its half-year results, while grocer and warehouse technology company Ocado posts a trading statement.
In the economic calendar on Tuesday, there is a US durable goods orders reading at 1230 GMT.
By Greg Rosenvinge, Alliance News senior reporter
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