The FTSE 100 is expected to open higher on Friday, supported by a technology-led rally on Wall Street and signs of improving confidence among UK businesses.
Futures indicate London’s blue-chip index will open around 24 points, or 0.2%, higher at 10,815.64. The FTSE 100 closed Thursday down 85.58 points, or 0.8%, at 10,792.54 and is currently 0.2% lower for the week.
Nvidia provided the main boost to global technology sentiment, surging 8.7% to US$227.98 following quarterly results and an outlook that reinforced expectations of continued strong spending on artificial-intelligence infrastructure. The move added approximately US$440 billion to Nvidia’s market value.
Salesforce jumped 22.6%, helping the Nasdaq Composite rise 1.6%. The S&P 500 gained 0.7%, while the Dow Jones Industrial Average advanced 0.2%.
The rally could provide further support for London’s technology and data-related stocks after a strong session on Thursday. Computacenter surged 7.9% to 5,625p, while Sage, London Stock Exchange Group, RELX and Experian also recorded gains.
UK sentiment was supported by the latest Lloyds Business Barometer, which showed business confidence rising four points to 53% in August, its strongest reading since March. Companies reported improving demand and greater optimism about the wider economy.
Asian markets were mostly positive overnight. Japan’s Nikkei 225 gained 0.8%, Hong Kong’s Hang Seng rose 0.3% and Taiwan’s Taiex advanced 1%, while South Korea’s Kospi fell 1%. Australia’s ASX 200 gained 0.5% as technology and banking shares recovered from Thursday’s decline.
Commodity markets offered a more mixed signal for London. Brent crude slipped 0.3% to around US$88.24 a barrel, gold futures fell 0.5% to approximately US$4,639 an ounce, while copper edged 0.2% higher to US$6.60 per pound.
Bitcoin traded around US$79,833, up approximately 1.5%, having reached US$81,280 during the session.
Attention now turns to US inflation data and Federal Reserve Chair Kevin Warsh’s Jackson Hole address later on Friday. Investors will be looking for clues about whether persistent inflationary pressures could keep US interest rates higher for longer.
The UK corporate calendar is relatively quiet, with Beowulf Mining among companies scheduled to report. Trading volumes could also ease ahead of the UK bank holiday weekend.
