FTSE 100 Live 03 January: Index seen lower, Tesla shares lead weaker US session
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The dollar index continues to trade near its highest level in two years after confidence in the US economy was boosted by yesterday’s weekly initial jobless claims figure. Signs that the Federal Reserve will adopt a more cautious stance on cutting interest rates in 2025 have also fuelled demand for the greenback.
In contrast, the latest figures from UK and European manufacturers came in below expectations yesterday. Sterling fell by 1.1% to $1.2380, its weakest closing level since April. It recovered slightly this morning to stand at $1.2392. The euro declined 0.9% to its lowest level against the US dollar since November 2022, ending yesterday’s session at $1.0265.
Deutsche Bank said: “This continues the declining trend that’s been evident since late September, as the prospect of US tariffs and a more hawkish Fed have put the currency under pressure.”. The FTSE 100 index is set to give up some of yesterday’s 1.1% improvement, with futures trading pointing to a modest fall at the opening bell.
The lacklustre start reflects a weak handover from Wall Street after the Dow Jones Industrial Average fell 0.4% and the S&P 500 index retreated 0.2%. Big share price fallers in New York included Tesla, which dropped 6% after the car maker’s annual delivery figure came in short of expectations.
