The FTSE 100 is expected to open virtually unchanged on Friday, as concerns over rising government borrowing costs continue to temper investor appetite for equities.
Futures point to London’s blue-chip index opening around 5 points higher at c10,753, after it finished Thursday just 4.81 points higher at 10,748.16. The index has changed little over the past week.
Bond markets remain a key focus. The US 10-year Treasury yield edged up to 4.71%, while the 30-year yield remained elevated at around 5.25%, reinforcing concerns that higher borrowing costs could eventually weigh on corporate earnings and equity valuations.
Wall Street provided a weak lead. The Dow Jones fell 1.3% on Thursday, while the S&P 500 lost 0.9% and the Nasdaq Composite declined 1.0%.
Walmart was among the biggest casualties, dropping 9.2% despite raising its full-year guidance. Investors focused instead on softer-than-expected US comparable sales growth, which came in at 2.6%.
Asian markets were mixed overnight. Japan’s Nikkei 225 declined 0.5% and the Shanghai Composite slipped 0.1%, while Hong Kong’s Hang Seng gained 0.8%.
Sterling strengthened to around $1.3647, while Brent crude remained elevated at approximately $93.43 a barrel. Gold extended its advance to around $4,543 an ounce.
UK investors will now turn their attention to retail sales, government borrowing and PMI data, which could provide further clues on the health of the economy and the outlook for interest rates.
