17th Oct 2025 06:51
(Alliance News) - London's FTSE 100 is set to open sharply in the red on Friday, with US-China trade tensions in focus, and after stocks in New York and Asia declined.
IG says futures indicate the FTSE 100 to slump 105.4 points, 1.1% at 9,330.69 on Friday. The index of London large-caps closed up 11.34 points, 0.1%, at 9,436.09 on Thursday. So far this week, it has edged up 0.1%.
In China on Friday, the Shanghai Composite was down 1.2% in afternoon trade, the Hang Seng Index in Hong Kong shed 1.8%. Tokyo's Nikkei 225 slumped 1.5%. Sydney's S&P/ASX 200 was down 0.8%.
"Sentiment soured once again on Thursday, with conditions on the whole remaining choppy, as a light docket now awaits today, with tariff headlines still in focus," Pepperstone analyst Michael Brown commented.
China on Thursday accused the US of deliberately creating panic through allegations by US administration officials concerning the imposition of export controls by Beijing.
The US interpretation seriously distorted and exaggerated China's measures, deliberately creating unnecessary misunderstanding and panic, Trade Ministry spokeswoman He Yongqian said in Beijing.
On Wednesday, US Trade Representative Jamieson Greer described Beijing's controls on the export of rare earths as "nothing more than a global supply chain power grab."
A barrel of Brent fell to USD60.84 early Friday, from USD61.70 at the time of the London equities close on Thursday. Gold traded at USD4,358.21 an ounce, up from USD4,270.73 late Thursday afternoon in London. Gold had set yet another record high on Thursday. It traded above the USD4,380 mark.
In New York on Thursday, the Dow Jones Industrial Average lost 0.7%, the S&P 500 fell 0.6% and the Nasdaq Composite declined 0.5%.
The yield on the 10-year US Treasury narrowed to 3.95% on Friday morning, from 4.03% at the time of the London equities close on Thursday. The 30-year yield slimmed to 4.56% from 4.62%.
Sterling advanced to USD1.3461 early Friday from USD1.3429 late Thursday afternoon. The euro perked up to USD1.1718 from USD1.1671. Against the yen, the dollar declined to JPY149.83 from JPY150.83.
SPI Asset Management analyst Stephen Innes commented: "Wall Street ran a high-speed juggling act overnight with more moving parts than an American carnival ride held together by duct tape and optimism - stocks falling off the highs, yields collapsing, volatility misbehaving, and the dollar limping into the weekend. Still, somewhere in the background, gold, as usual these days, has yet again seized the crown."
A top contender to run the US Federal Reserve threw his support on Thursday behind a quarter-point rate cut later this month, claiming he believes inflation will soon cool.
Speaking in New York, US Fed Governor Christopher Waller said that economic conditions were such that policymakers should focus their attention on the softening labour market instead.
"Tariffs have modest effects on inflation, but with underlying inflation close to our goal and expectations of future inflation well anchored, I believe we are on track toward the FOMC's 2% goal," Waller said, referring to the rate-setting Federal Open Market Committee.
"As a result, my focus is on the labour market, where payroll gains have weakened this year and employment may well be shrinking already," he added.
Friday's global economic diary has eurozone consumer prices at 1000 BST.
Industrial production figures published by the Fed was on the docket for Friday, but will not be published as it incorporates a "a range of data from other government agencies", the central bank explained last week.
By Eric Cunha, Alliance News news editor
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