London stocks are expected to open higher on Friday, with investors looking ahead to key US inflation data later in the day after a broad sell-off across Wall Street and Asian markets.
Futures suggest the FTSE 100 will rise 19.3 points, or 0.2%, to 10,422.14 at the open. The index ended Thursday down 0.7% at 10,402.44.
Market sentiment remains cautious amid heightened geopolitical and policy uncertainty in the US. President Donald Trump has revoked the 2009 “endangerment finding” that underpins federal regulations to limit greenhouse gas emissions, marking one of the administration’s most significant climate policy rollbacks. The White House has also formally scrapped vehicle emissions standards, a move expected to face swift legal challenges.
In currency markets, sterling slipped to USD1.3596 early Friday from USD1.3628 at Thursday’s London close. The euro eased to USD1.1854 from USD1.1869, while the dollar strengthened against the yen to JPY153.27 from JPY152.56.
On Wall Street, equities fell sharply on Thursday, led by losses in technology stocks. The Dow Jones Industrial Average dropped 1.3%, the S&P 500 fell 1.6%, and the Nasdaq Composite slid 2.0%. Analysts said the decline appeared driven more by broad de-risking than by any single trigger.
Investors will now focus on US consumer price inflation data for January, due at 1330 GMT. Headline CPI is expected to rise 2.5% year-on-year, easing from 2.7% in December.
In trade news, the US signed an agreement with Taiwan confirming lower tariffs on Taiwanese goods alongside investment commitments, though the deal still requires approval by Taiwan’s legislature.
Asian markets were weaker on Friday. Japan’s Nikkei fell 1.0%, China’s Shanghai Composite dropped 1.0%, and Hong Kong’s Hang Seng declined 1.9%. Australia’s S&P/ASX 200 lost 1.4% after household spending growth slowed in January.
In Europe, ahead of the Munich Security Conference, EU leaders pledged to pursue reforms to revive the bloc’s economy but remained divided over proposals for joint debt issuance.
In commodities, gold edged higher to USD4,955.70 an ounce from USD4,932.33 on Thursday.
