23rd Oct 2026 06:54
(Alliance News) - London's FTSE 100 is expected to inch higher on Friday, though lingering artificial intelligence sector worries have hit parts of Asia, after tech stocks were sold off in New York.
IG says futures indicate the FTSE 100 to open 5.4 points higher, 0.1%, at 10,730.43 on Friday. The index of London large-caps closed down 27.85 points, 0.3%, at 10,725.03 on Thursday.
Sterling traded at USD1.3390 on Friday morning, up from USD1.3365 at the time of the London equities close on Thursday. Against the euro, it rose to EUR1.1938 from EUR1.1933.
The euro rose to USD1.1212 from USD1.1201. Against the yen, the dollar fell to JPY156.88 from JPY157.20.
The yield on the US 10-year Treasury was quoted at 4.97%, narrowing from 5.02% late Thursday afternoon UK time. The yield on the US 30-year Treasury was quoted at 5.29%, narrowing from 5.33%.
Worries surrounding AI spending have weighed on the dollar, but supported Treasury prices. Bond prices move inversely to yields.
"If higher financing costs begin forcing companies to reconsider investment schedules, the consequences extend beyond a handful of expensive semiconductor stocks. The reduction in capital expenditure could weaken an important source of economic demand, while simultaneously easing some of the pressure on bond issuance and real yields," SPI Asset Management analyst Stephen Innes commented.
"The market is therefore confronting the possibility that the very investment cycle supporting higher Treasury yields could become the reason those yields decline."
The analyst continued: "The irony is that Wall Street spent much of the year fearing the AI boom would keep growth too strong and interest rates too high. Now investors are beginning to contemplate the opposite: that the cost of sustaining the boom could weaken the growth outlook enough to make bonds attractive again."
In Tokyo on Friday, the Nikkei 225 was down 0.7% in late afternoon dealings. The Shanghai Composite in China was down 0.4%, though the Hang Seng Index in Hong Kong was up 0.8%. The S&P/ASX 200 was flat.
In the US on Thursday, performance on Wall Street was mixed, with the Dow Jones Industrial Average marginally higher, the S&P 500 down 1.2% and the Nasdaq Composite down 2.6%.
Meta dropped 7.0% despite reporting better-than-expected third-quarter revenue. Chipmakers followed suit as Wall Street scrutinised artificial intelligence spending. Advanced Micro Devices fell 8.1%, while Micron Technology and Nvidia dropped 6.3% and 4.4%, respectively.
Brent surged to USD114.20 a barrel early Friday, from USD111.18 late Thursday afternoon. Brent traded around its highest level since early May.
Gold was quoted at USD4,020.91 an ounce, fading from USD4,054.71. Gold fell to an intraday low of USD3,986.71, its weakest level since July.
Friday's local corporate calendar has a trading statement from betting operator Evoke.
Friday's global economic calendar has a slew of composite PMI readings, including the UK at 0930 BST. Also in the UK, retail sales figures will be released at 0700. In the US, the Michigan consumer sentiment index is due.
By Eric Cunha, Alliance News news editor
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