London stocks are expected to open lower on Friday as Middle East conflict concerns, higher oil prices and fresh US tariff risks weigh on sentiment.
Futures indicate the FTSE 100 will open around 30 points lower, or 0.3%, at 10,618.17. The call follows Thursday’s 77-point fall, which left the blue-chip index at 10,639. The blue-chip index closed down 0.7% at 10,639.17 on Thursday, although it remains up 0.4% for the week so far.
London equities are facing pressure from two directions: a sharp Wall Street sell-off led by technology stocks and renewed geopolitical anxiety in the Middle East. Oil prices have climbed back into triple figures for the first time in months, adding to concerns over inflation and global supply disruption.
Brent crude remained above US$100 a barrel, keeping inflation concerns in focus. The oil benchmark eased slightly to US$100.16 early Friday from US$100.98 late Thursday.
Gold slipped to US$4,027.15 an ounce from US$4,047.56.
The US said it will impose new tariffs on 60 trading partners over forced labour concerns, replacing an expiring global duty introduced earlier this year. The levies, which take effect Friday, range from 10% to 12.5%. Canada, the EU and the UK are expected to face the lower 10% rate, while China and Japan are among those facing the higher 12.5% rate.
Sterling firmed to US$1.3315 early Friday from US$1.3303 at Thursday’s London close. Against the euro, the pound edged down to EUR1.1693.
Asian markets were weaker, with Japan’s Nikkei down 2.9%, while the Shanghai Composite and Hong Kong’s Hang Seng both fell 1.4%.
Wall Street closed sharply lower on Thursday, with the Dow Jones down 1.0%, the S&P 500 falling 1.2% and the Nasdaq Composite slumping 2.1%. The Nasdaq led the decline, dropping 2.2% as large-cap technology names came under pressure.
The S&P 500 fell 1.2%, marking its worst session of the month, while the Dow Jones Industrial Average lost 1%. Technology shares struggled after earnings from Alphabet and Tesla failed to reassure investors.
UK consumer confidence improved in July, with the GfK consumer confidence index rising to minus 17 from minus 23 in June, ahead of expectations for minus 21. GfK said the improvement was driven largely by stronger views on the economy, helped by political change, hopes earlier in July that the Middle East conflict might stabilise, and the feel-good effect of the FIFA World Cup.
Friday’s economic calendar includes UK retail sales, flash PMI readings from the UK, eurozone and US, and further market focus on energy prices.
In corporate news, Allianz announced a new distribution agreement with HSBC and a deal to acquire HSBC Life Singapore, with the two agreements carrying a combined consideration of €2.0 billion.
