The FTSE 100 is expected to open broadly unchanged at around 10,458.20 on Thursday, after falling 0.8% to 10,458.50 on Wednesday.
Global sentiment remains cautious after Federal Reserve minutes showed most policymakers expect another US interest-rate increase before the end of 2026.
The Fed raised rates by 25 basis points in September to 3.75%-4.00%, its first increase since July 2023.
However, officials remain divided over how quickly to tighten further, and markets continue to favour a pause at the October meeting, with December seen as the more likely point for another increase.
Wall Street closed lower on Wednesday, with the Dow down 0.7%, S&P 500 down 0.2% and Nasdaq down 0.2%, retreating from recent record highs as Treasury yields remained elevated.
Asian markets followed lower on Thursday, with Japan, China, Hong Kong and Australia all declining.
The US 10-year Treasury yield was around 5.32%, while the 30-year yield edged up to approximately 5.70%.
Brent crude climbed to around $102.64 a barrel, extending its move back above $100 despite efforts by the International Energy Agency to accelerate strategic reserve releases.
The IEA said its members remain prepared to release additional stocks if required, with diesel supplies a particular focus. Around 100 million barrels from previously agreed releases are still due to reach the market.
Sterling weakened slightly to around $1.3206, while gold recovered to approximately $4,130 an ounce.
One major corporate highlight came from Samsung Electronics, which forecast extraordinary third-quarter results as the AI boom drives demand for memory chips.
Samsung expects revenue of around KRW195 trillion, more than double the previous year, while operating profit is forecast at a record KRW107.4 trillion, almost nine times the prior-year level.
The figures are unusually large but are correct: Samsung said the result reflects soaring demand and tight supply across the memory-chip market.
Despite the earnings surge, Samsung shares fell slightly as investors questioned how long the current AI-driven memory cycle can continue. Full quarterly results are expected on 29 October.
In London, attention turns to Tesco half-year results and a trading update from Unite Group, while US initial jobless claims are due later in the session.
For investors, the central tension remains unchanged: corporate earnings are strong, particularly in AI-related sectors, but oil above $100 and long-term bond yields above 5% continue to constrain equity valuations.
