The FTSE 100 is expected to edge up by six points to 9,708, a muted start that feels more like a half-charged phone than a burst of optimism, even as global markets try to steady themselves.
Asian trading was largely uneventful overnight as markets recovered from the sharp moves in global bonds and cryptocurrencies. Bitcoin reclaimed the $90,000 mark, Wall Street futures ticked higher, and equity traders appeared to dismiss Monday’s turmoil as a brief misstep.
MSCI’s Asia-Pacific index was little changed, while Japan’s Nikkei climbed 1.14%, signalling a return to relative calm.
The earlier volatility stemmed from the prospect of a Bank of Japan rate hike, a development that rattled bond markets and reminded investors how quickly carry trades can reverse. Japanese government bonds remain under strain, with the five-year yield reaching its highest level since 2008.
With few new catalysts, the focus has shifted back to the Federal Reserve, where markets are leaning toward a rate cut next week and anticipating an even more dovish stance should Kevin Hassett take over from Jerome Powell.
A weaker dollar and signs of softness in the Australian economy contributed to the backdrop, while oil and gold posted small gains. For now, sentiment appears steady — and the FTSE’s modest six-point rise captures that mood perfectly.
