The FTSE 100 is expected to stabilise on Friday, with markets taking a breather after a sharp sell-off saw the index fall 242 points, or 2.4%, to 10,064.
Spreadbetters suggest the index will open around 23 points higher, pointing to a modest rebound at the start of trading.
Energy markets have also steadied. Oil prices moved lower after Israeli Prime Minister Benjamin Netanyahu said the war with Iran could end sooner than expected. Brent crude fell to $108.11 a barrel, down from $110.46.
In currency markets, sterling strengthened to $1.3406, while the euro edged higher to $1.1563. The dollar also firmed slightly against the yen.
On Wall Street, the Dow Jones Industrial Average fell 0.4%, the S&P 500 slipped 0.3%, and the Nasdaq Composite declined 0.3%.
Asian markets were weaker, with China’s Shanghai Composite down 1.2% and Hong Kong’s Hang Seng Index falling 1.1%, while Australia’s S&P/ASX 200 dropped 0.8%.
Gold fell 4.94%, while aluminium dropped more than 5%, weighing heavily on mining stocks.
Shares in Hycroft Mining Holding Corporation tumbled 12.4%, while Century Aluminum Company plunged 10.3%.
