London stocks are set to open slightly higher on Monday as investors digest sharp moves across commodity and foreign exchange markets at the start of the week.
Futures point to the FTSE 100 opening 8.7 points higher, or 0.1%, at 10,152.14. The UK blue-chip index ended Friday down 0.1% at 10,143.44.
Commodity and currency markets have dominated early trading, with gold surging to fresh record highs above the USD5,000-an-ounce level amid elevated global uncertainty. Market volatility has been underpinned by renewed unease over US President Donald Trump’s policy agenda, including his ambitions for Greenland, alongside mounting pressure on the Federal Reserve — developments that have reinforced demand for safe-haven assets.
In currency markets, the US dollar weakened sharply against the yen, trading at JPY 154.08 early Monday, down from JPY 157.99 late on Friday. Commerzbank said the yen ended last week as the strongest G10 currency, supported by speculation that the Bank of Japan could intervene to stabilise the currency. The move was reportedly fuelled by rate checks conducted by the BoJ and the Federal Reserve Bank of New York, often seen as a precursor to intervention.
Japanese Prime Minister Sanae Takaichi added to the narrative on Sunday, warning that authorities stood ready to take “all necessary measures” to counter what she described as “speculative and highly abnormal” currency moves. Despite the firmer yen, Tokyo’s Nikkei 225 fell 1.8%.
Elsewhere in Asia, China’s Shanghai Composite edged up 0.1%, while Hong Kong’s Hang Seng slipped 0.1%.
Across broader FX markets, Swissquote senior analyst Ipek Ozkardeskaya said “everything points to broad-based dollar selling”. Sterling strengthened to USD1.3665 from USD 1.3567 at Friday’s London close, while the euro climbed to USD 1.1861 from USD 1.1758.
On Wall Street on Friday, markets closed mixed. The Dow Jones Industrial Average fell 0.6%, while the S&P 500 and Nasdaq Composite rose 0.1% and 0.3% respectively.
Commodity markets remained buoyant. Spot gold jumped 2.2% to a fresh all-time high of $5,110.50 an ounce. The metal surged 64% last year — its strongest annual performance since 1979 — and has continued to build on that momentum in 2026, rising by around 17% year to date.
Silver also extended its powerful rally after breaking through the $100-an-ounce level on Friday. Spot silver climbed 4.5% to $107.60 an ounce, having earlier touched a record high of $109.44, underscoring the intensity of the precious metals surge.
Brent crude rose to USD 66.26 a barrel from USD 65.76. Oil prices also found support after Venezuela said it aims to lift crude output by 18% this year through reforms that would fully open the sector to private investors. PDVSA chief executive Hector Obregon said the existing legal framework was no longer fit for purpose.
