The FTSE 100 is set to open higher on Friday after a powerful rally on Wall Street and across Asian markets, driven by blockbuster results from Amazon that reignited enthusiasm for technology stocks.
Futures point to London’s blue-chip index opening around 50 points, or 0.5%, higher at 10,950.67, following Thursday’s close of 10,897.27.
In the US, the Dow Jones gained 1.2%, the S&P 500 rose 1.7%, and the Nasdaq Composite surged 2.8% as investors welcomed strong earnings from major technology companies.
Amazon jumped 9.6% in after-hours trading after reporting second-quarter revenue of US$200.6 billion, up 20% year-on-year, while net income more than tripled to US$62.7 billion. The company’s cloud division, Amazon Web Services, delivered 37% revenue growth to US$42.2 billion, helping ease concerns over the profitability of heavy artificial intelligence investment.
By contrast, Apple fell 6.3% in extended trading after warning that supply constraints would worsen in the current quarter, with expected revenue growth of 9% to 11%, below market forecasts.
The strong US session lifted Asian equities, with Japan’s Nikkei 225 climbing 4.4%, while South Korea’s Kospi surged 17% as semiconductor stocks staged a sharp recovery after heavy losses earlier in the week.
The Bank of Japan left its benchmark interest rate unchanged at 1.0%, a decision widely expected by markets.
Commodity prices eased overnight, with Brent crude falling to US$87.14 a barrel, while gold slipped to US$4,074.71 an ounce.
Investors will now turn their attention to UK corporate earnings, with half-year results due from NatWest, International Consolidated Airlines (IAG) and Rightmove, alongside eurozone inflation data later in the morning.
