25th Sep 2026 07:01
(Alliance News) - Stocks in London are set to open higher on Friday despite a deepening global bond sell-off, as investors also monitor escalating tensions around Saudi Arabia after fresh Houthi missile attacks.
IG says futures indicate the FTSE 100 to open 36.0 points higher, 0.3%, at 10,715.99 on Friday. The index of London large-caps closed down 0.2% at 10,679.99 on Thursday.
A global bond sell-off deepened on Thursday, pushing government borrowing costs higher around the world as investors increased bets on further interest rate rises by the US Federal Reserve.
The US 30-year Treasury yield climbed as high as 5.5% on Thursday afternoon, its highest level since 2004, extending a sharp rise in yields this week.
The sell-off gathered pace after S&P Global data on Wednesday showed robust US business activity in September alongside stronger inflationary pressures caused by higher energy prices, prompting traders to increase bets on further Fed tightening.
The benchmark 10-year Treasury yield rose as high as 5.22% on Thursday, its highest level this year and the highest since 2007.
Sterling was quoted at USD1.3219 early Friday, higher than USD1.3214 at the London equities close on Thursday. Against the euro, sterling fell to EUR1.1620 from EUR1.1628 a day prior.
The euro traded at USD1.1376 early Friday, higher than USD1.1367 late Thursday. Against the yen, the dollar was quoted at JPY158.21 versus JPY158.98.
Brent oil was trading at USD104.93 a barrel early Friday, lower than USD107.25 late Thursday, as investors monitored escalating tensions around Saudi Arabia following fresh Houthi missile attacks.
Saudi Arabia intercepted six Houthi ballistic missiles after issuing warnings for several regions, including Mecca, as fighting intensified in Yemen between the Houthis and Riyadh-backed government forces.
The Saudi-led coalition supporting Yemen's government said the missiles were intercepted before they could strike Taif and Yanbu. The attacks were the latest in a series since renewed hostilities in July ended a years-long truce.
The Houthis have since imposed a naval blockade on Saudi Arabia, targeting tankers and territory and seizing parts of Yemen's Red Sea coast, a strategically important route for Saudi oil exports.
French President Emmanuel Macron said France planned to send "military assets, meaning soldiers, radars and defence systems to protect" Yanbu.
Yanbu is a key hub in Saudi Arabia's energy infrastructure, serving as its main crude export terminal on the Red Sea. It is connected to oil-producing regions near the Gulf coast through the East-West pipeline, also known as Petroline.
Meanwhile, Iran has presented the US with a plan to reopen the Strait of Hormuz, Foreign Minister Abbas Araghchi said.
Araghchi told reporters on the sidelines of the UN General Assembly he had proposed a seven-day plan, US media reported.
"We have introduced a plan to the US through the intermediators that if certain conditions are met, the Strait of Hormuz would be open on the end of the seventh day and talks would restart," Araghchi said.
He declined to elaborate on the conditions but said they were "nothing more" than what the two countries agreed to in June.
The proposal had been delivered to the US through a mediator, the New York Times and CNN reported.
In the US on Thursday, Wall Street ended lower, with the Dow Jones Industrial Average down 0.3%, the S&P 500 marginally lower and the Nasdaq Composite also marginally lower.
In Asia on Friday, the Nikkei 225 index in Tokyo rose 1.3%. In China, the Shanghai Composite was closed for the Mid-Autumn Festival, while the Hang Seng index in Hong Kong lost 1.4%. The S&P/ASX 200 in Sydney was down 0.4%.
Gold was quoted at USD4,273.21 an ounce early Friday, higher than USD4,252.84 on Thursday.
Back in the UK, consumer confidence continued its gradual recovery in September, although it remained firmly in negative territory.
GfK's consumer confidence index rose one point to minus 13, continuing its recovery since April and marking the first time since summer 2024 that the index has recorded three consecutive monthly increases.
Perceptions of the wider economy over the past year improved four points to minus 36, while views on personal finances over the same period rose three points to minus 3.
Expectations for the economy over the coming 12 months edged up one point to minus 22, 10 points higher than a year earlier, while expectations for personal finances rose one point to 5.
The major purchase index was the only measure to decline, falling one point to minus 8, although it remained eight points higher than a year earlier.
In Friday's corporate calendar, Malibu Life Holdings reports half-year results.
In the economic calendar on Friday, US durable goods orders are due.
By Eva Castanedo, Alliance News senior economics reporter
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