London markets are expected to open lower on Friday as investors digest the outcome of the US-China summit alongside intensifying political uncertainty in Westminster.
FTSE 100 futures point to a decline of 85.3 points, or 0.8%, to 10,287.63. The benchmark index closed 0.5% higher at 10,372.93 on Thursday.
Investor sentiment remains cautious despite US President Donald Trump describing his meetings with Chinese President Xi Jinping in Beijing as highly successful.
Trump said the two countries had reached “fantastic trade deals” and claimed Xi had expressed support for reopening the Strait of Hormuz, a critical route for global oil shipments currently disrupted by the conflict involving Iran.
The US president also suggested Xi had indicated China would not provide military support to Tehran, a development markets are watching closely given growing concerns around energy security and global trade flows.
Currency markets reflected a more defensive tone, with sterling weakening sharply against both the US dollar and euro.
In UK politics, attention has shifted to Andy Burnham after he confirmed plans to return to Westminster through a Labour by-election, potentially setting up a future leadership challenge to Prime Minister Keir Starmer.
The move follows Labour MP Josh Simons’ decision to stand aside in the Makerfield constituency to allow Burnham to contest the seat.
On Wall Street, US equities closed higher on Thursday, with the Dow Jones Industrial Average, S&P 500 and Nasdaq Composite all posting gains as technology shares continued to lead the market higher.
Asian markets traded lower overnight. Japan’s Nikkei 225 fell 1.9% after stronger-than-expected producer inflation data increased concerns over rising costs and potential monetary tightening by the Bank of Japan.
China’s Shanghai Composite declined 0.9%, while Hong Kong’s Hang Seng dropped 1.9%. Australia’s S&P/ASX 200 also edged lower.
Oil prices remained elevated, with Brent crude rising above USD107 per barrel amid continued disruption to Middle East energy supplies.
US Treasury Secretary Scott Bessent said Iran’s oil exports had effectively stalled due to the ongoing US blockade of Iranian ports, warning that prolonged disruption could inflict lasting damage on the country’s energy infrastructure.
Meanwhile, gold prices retreated sharply after recent record highs, falling to around USD4,564 per ounce early Friday.
