The FTSE 100 is expected to open around 20 points, or 0.2%, higher at 10,760 on Tuesday, extending Monday’s 0.8% gain as renewed enthusiasm for artificial intelligence lifted global technology stocks.
Wall Street rallied overnight after strong early demand for Meta Platforms’ new Muse AI assistant revived enthusiasm around AI investment. Meta shares jumped more than 11%, helping the Nasdaq Composite surge 2.3% to a record close, while the S&P 500 gained around 1.5% and the Dow rose 0.7%.
Lower oil prices have also improved sentiment. Brent crude traded around $101.72 a barrel early Tuesday, well below the near-$110 levels reached last week, as markets assess whether increased physical supply and diplomatic efforts can ease disruption from the Middle East.
US government bond yields eased slightly, with the 10-year Treasury yield around 4.96%, helping support technology and other rate-sensitive stocks.
In the UK, attention will turn to public-sector borrowing figures amid renewed scrutiny of the government’s finances ahead of the Autumn Budget. KPMG’s September economic outlook warned that higher borrowing costs and weaker growth prospects have reduced the Chancellor’s fiscal headroom. John Healey has served as Chancellor of the Exchequer since July 2026.
Asian markets were generally positive, with Chinese and Hong Kong shares edging higher, while Japanese markets remained closed for a public holiday.
Sterling strengthened slightly to around $1.338, while gold fell to approximately $4,326 an ounce.
For London investors, the main drivers on Tuesday are likely to be AI-related risk appetite, oil prices and UK borrowing data, alongside results from Kingfisher and Smiths Group.
