London equities were poised to open slightly lower on Monday, with the FTSE 100 expected to fall around 10 points at the open following Friday’s triple-digit slump. Traders are bracing for a busy week of UK economic data, alongside the return of US releases now that the government shutdown has ended.
Sterling and the euro slipped modestly in early trading, while US Treasury yields edged higher, reflecting lingering caution across global markets. Wall Street ended Friday’s session mixed, as investors weighed fading hopes of a near-term Federal Reserve rate cut against a tentative rebound in tech stocks.
Meanwhile, fresh reports suggest Chancellor Rachel Reeves is preparing to extend the freeze on income-tax thresholds to 2030, a move that could intensify political debate and add another layer of uncertainty to this week’s market narrative.
The tech sector, which fuelled global market gains through the spring and summer, is now showing signs of strain as traders grow increasingly uneasy about stretched valuations. All eyes are on Nvidia’s earnings later this week, widely viewed as a litmus test for the AI boom and a potential catalyst for either renewed confidence or deeper correction.
The pullback has spread beyond equities. Bitcoin briefly dipped below its end-2024 level, wiping out all gains for the year and underscoring a broader shift toward risk aversion across global markets.
Asian trading offered little relief. Hong Kong, Shanghai and Sydney all slipped, while Tokyo suffered the steepest declines after China advised its citizens against travelling to Japan, sending retail and tourism stocks sharply lower.
