(Alliance News) - Stocks in London are set to open flat on Tuesday, ahead of more US corporate earnings and despite somewhat bullish trade in New York overnight.

IG says futures indicate the FTSE 100 to open up just 0.7 of a point at 7,407.12 on Tuesday. The index of London large-caps closed down 28.15 points, or 0.4% at 7,406.42 on Monday. Trading had been mostly downbeat following a weaker-than-expected economic growth print from China.

"But it doesn't seem to be a concern for the US equities, as despite the morose mood in Asia and Europe yesterday, the S&P 500 advanced yet to another high since April 2022, as Nasdaq 100 reached levels last since at the start of last year," said Swissquote Bank's Ipek Ozkardeskaya.

Wall Street ended higher on Monday, with the Dow Jones Industrial Average up 0.2%, the S&P 500 up 0.4% and the Nasdaq Composite up 0.9%.

In the US corporate calendar on Tuesday, there will be results from Bank of America and Morgan Stanley. Goldman Sachs, Netflix, Tesla and Johnson & Johnson to follow later in the week.

The US Federal Reserve's "blackout period", ahead of its July policy meeting, also begins. The Fed will announce its next interest rate decision next Wednesday. According to the CME FedWatch Tool, markets are expecting the central bank to lift interest rates by 25 basis points.

The dollar was weaker in early exchanges in Europe.

Sterling was quoted at USD1.3096 early Tuesday, higher than USD1.3080 at the London equities close on Monday. The euro traded at USD1.1259, higher than USD1.1231. Against the yen, the dollar was quoted at JPY138.34, down versus JPY139.11.

In Asia on Tuesday, the Nikkei 225 index in Tokyo was up 0.1%, reopening after a public holiday. In China, the Shanghai Composite was down 0.2%. The Hang Seng index in Hong Kong was down 1.9%, reopening after an unplanned closure due to a typhoon on Monday. The S&P/ASX 200 in Sydney was down 0.3%.

Russia refused to extend a deal on to allow Ukrainian grain exports through the Black Sea, sparking outrage from the United Nations, which warned millions of the world's poorest would "pay the price".

The Kremlin on Monday said it was exiting the deal, after months of complaining that elements allowing the export of Russian food and fertilisers had not been honoured. Moscow's withdrawal could see Russian ships preventing grain exports by blockading Ukrainian ports, which occurred in the conflict's early months and helped drive up global food prices.

Gold was quoted at USD1,960.76 an ounce early Tuesday, higher than USD1,952.33 on Monday. Brent oil was trading at USD78.75 a barrel, lower than USD79.11.

In the UK corporate calendar on Tuesday, there are half-year results from Ocado as well as trading statements from Wise and Artisanal Spirits.

The economic calendar has retail sales data for the US at 1330 BST, followed by a US industrial production print at 1415 BST.

By Elizabeth Winter, Alliance News senior markets reporter

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