The FTSE 100 is expected to open only marginally higher on Monday, with investors balancing elevated geopolitical risk, stubbornly high bond yields and mixed moves across commodity markets.
London’s blue-chip index finished Friday 0.6% higher at 10,816.56, helped by strong gains across mining and resource stocks.
Gold remained supportive for precious-metals producers, rising around 0.8% to $4,645 an ounce on a softer dollar and continued safe-haven demand. Copper was little changed at around $6.58 per pound, suggesting a more mixed start for diversified miners.
Oil moved in the opposite direction, with Brent crude falling around 1.5% to $93 a barrel ahead of fresh US economic measures aimed at Iran. The decline could weigh on BP and Shell but provide some relief for airlines, retailers and other energy-intensive businesses.
Geopolitical risk remains elevated, with markets watching for any Iranian response that could affect shipping through the Strait of Hormuz.
Asian markets were broadly weaker. South Korea’s Kospi fell 3.5%, while Hong Kong’s Hang Seng dropped 2.1%. Japan’s Nikkei 225, Taiwan’s Taiex and the Shanghai Composite also declined.
Australia bucked the trend, with the S&P/ASX 200 gaining 0.5%, supported by miners. BHP rose around 3.4%, while the materials sector reached a record high.
Bitcoin traded near $77,100, while US equity futures edged lower.
With little major UK economic or corporate news scheduled, early direction in London is likely to depend on Middle East developments, commodity prices and movements in global bond yields.
