The FTSE 100 is expected to open around 30 points, or 0.3%, higher at 10,686.73 on Monday, recovering a small part of Friday’s 1.5% decline.
Sentiment has improved ahead of Thursday’s meeting between US President Donald Trump and Chinese President Xi Jinping, after US and Chinese officials held talks over the weekend covering trade and artificial intelligence. US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng discussed a proposed AI incident notification mechanism and broader economic cooperation ahead of the summit.
Asian markets responded positively, with the Shanghai Composite up 0.5% and Hong Kong’s Hang Seng gaining 0.6%. Japanese markets were closed for a holiday.
US markets were mixed on Friday, with the Dow Jones falling 0.2%, while the S&P 500 rose 0.2% and the Nasdaq gained 0.4%.
Bond yields remain elevated, with the US 10-year Treasury yield around 5.00% and the 30-year yield at approximately 5.33%, maintaining pressure on rate-sensitive assets.
Brent crude fell sharply to around $101.86 a barrel from $104.37 on Friday, despite continued geopolitical tensions in the Middle East and reports of further attacks affecting regional energy and shipping risks.
Gold was broadly steady at around $4,358 an ounce, while sterling traded close to $1.338 against the dollar.
With relatively little major UK corporate news scheduled, London trading is likely to remain driven by US-China developments, bond yields and oil prices, with investors watching for signs that this week’s Trump-Xi summit can extend the current easing in trade tensions.
