Stocks in London are set to open sharply lower on Monday as investors digest violent losses across precious metals markets.
Futures point to the FTSE 100 opening 73.2 points lower, down 0.7% at 10,150.34. The index closed Friday up 0.5% at 10,223.54. The FTSE 100 had gained 272 points over January and notched a series of fresh intraday highs, but that momentum now looks set to reverse.
Sterling weakened to $1.3670 early Monday from $1.3719 at Friday’s London close, while the euro slipped to $1.1851 from $1.1881. Against the yen, the dollar firmed to ¥154.63.
The pressure is coming from a sharp unwind in commodities. Gold is down more than 7% at around $4,536 an ounce, silver has slumped 12% to $74.30, copper is 4.7% lower at $5.64 per pound, while Brent crude has fallen 4.5% to $66.20 a barrel. Natural gas, platinum, lithium and other metals are also trading sharply lower.
Crypto markets are offering little shelter. Bitcoin has dropped 2.3% to $76,281, while Ethereum is down 7.6%, underscoring the continued correlation with broader risk sentiment.
In the US, a partial government shutdown began after Congress failed to pass a 2026 budget before the midnight deadline, although disruption is expected to be limited with lawmakers set to revisit the issue early this week. Talks broke down amid political fallout following the killing of two protesters in Minneapolis by federal immigration agents.
US President Donald Trump meanwhile said he would “welcome” Chinese investment in Venezuela’s oil sector as the country looks to revive production following the removal of Nicolás Maduro.
Wall Street ended Friday in the red, with the Dow Jones Industrial Average down 0.4%, the S&P 500 off 0.4% and the Nasdaq Composite sliding 0.9%.
Asian markets were also under heavy pressure. Japan’s Nikkei fell 1.2%, China’s Shanghai Composite dropped 2.4%, Hong Kong’s Hang Seng sank 3.2% and Australia’s ASX 200 lost 1.0%.
