The FTSE 100 is expected to open marginally lower on Friday as investors weigh fresh US trade measures, rising oil prices and the prospect of market-moving US employment data later in the session.
Futures indicate London’s blue-chip index will open around 10 points, or 0.1%, lower at 10,855.89, after closing 0.2% down at 10,867.89 on Thursday.
Brent crude strengthened to $83.71 a barrel, up from $81.74 late Thursday, potentially adding renewed inflationary pressure after recent volatility in energy markets.
Trade policy also returned to focus after US President Donald Trump signed an order imposing tariffs on polysilicon imports. The material is an important component in semiconductor and solar-panel manufacturing, with the White House seeking to encourage more of the supply chain to move to the US.
Sterling was broadly steady at $1.3452, while the euro traded at $1.1523. The dollar was little changed against the yen at ¥158.36.
In the UK, retail footfall remained weak but showed signs of improvement. British Retail Consortium-Sensormatic data showed total footfall fell 2.1% year-on-year in July, compared with a 3.4% decline in June.
High Street traffic dropped 3.8%, while retail parks recorded a 1.2% increase. London remained particularly weak, with footfall falling 5.3%.
Wall Street provided a subdued lead overnight. The Dow Jones Industrial Average fell 0.9%, while the S&P 500 declined 0.2% and the Nasdaq Composite slipped 0.1%.
Asian markets were mixed. Japan’s Nikkei 225 fell 0.2% after household spending unexpectedly dropped 3.3% year-on-year in June. China’s Shanghai Composite gained 0.8%, while Hong Kong’s Hang Seng edged 0.1% higher.
China’s trade surplus narrowed to $112.50 billion in July from $125.62 billion in June, although it remained ahead of market expectations. Exports increased 24% year-on-year while imports rose 27.5%.
Gold continued to strengthen, trading at $4,275.37 an ounce, compared with $4,250.01 late Thursday.
Attention will now turn firmly towards the US jobs report, with nonfarm payrolls and unemployment figures likely to influence expectations for the Federal Reserve’s next interest-rate decision.
