19th Oct 2026 06:57
(Alliance News) - Stocks in London are set to open slightly lower on Monday, after a sizeable rise last week, having shaken off worries hanging over the tech sector in New York.
Indices stateside tumbled on Friday, setting the stage for a nervy start to the new week.
IG says futures indicate the FTSE 100 to open 5.4 points lower, 0.1%, at 10,876.50 on Monday. The index of London large-caps closed up 41.55 points, 0.4%, at 10,881.90. It rose 3.1% last week.
In New York on Friday, the Dow Jones Industrial Average lost 0.4%, the S&P 500 shed 1.1%, and the Nasdaq Composite plunged 2.1%.
XTB analyst Kathleen Brooks commented: "Investors are still digesting last week's price action as we start a new week. US stocks sold off sharply, with the Swiss and UK indices attracting inflows as tech sold off. Sovereign bonds, particularly Treasuries, rallied and acted as a safe haven as the AI trade suffered another bout of volatility."
In Tokyo on Monday, the Nikkei 225 was down 0.8%. In China, the Shanghai Composite was up 0.2%. The Hang Seng Index was 0.5% higher. The S&P/ASX 200 in Sydney climbed 0.4%.
China's economy expanded more quickly in the third quarter of 2026, according to figures from the National Bureau of Statistics. The NBS said China's gross domestic product rose 4.5% year-on-year in the third quarter ended September 30. Growth accelerated from 4.3% in the second quarter and beat the FXStreet-cited consensus of 4.4%.
Sterling traded at USD1.3333 early Monday, down slightly from USD1.3339 at the time of the London equities close on Friday. Against the euro, it rose to EUR1.1868 from EUR1.1860.
The common currency fell to USD1.1230 from USD1.1248. Versus the yen, the dollar bought JPY158.07, up from JPY157.88.
The yield on the US 10-year Treasury was at 5.07% early Monday, narrowing from 5.08% at the time of the London equities close Friday, while the yield on the 30-year Treasury was quoted at 5.41%, slimming from 5.42%.
Dramatic events in France over the weekend could mean traders have one eye on OATs, Obligations assimilables du Tresor, French sovereign debt.
French President Emmanuel Macron has expressed the public's "anger" and "shame" over nationwide protests against rising living costs and poor conditions in schools that have resulted in at least 2,400 arrests.
Macron echoed other government officials in blaming much of the violence on far-left activists, accusing them of attacking police and public buildings to foment chaos.
"Those who looted will have to pay back for the damage, and those who sought to bring down the Republic will be held accountable," Macron said in a televised address to the nation.
XTB's Brooks commented: "From a market perspective, the violence and protests in France over the weekend could impact the French - German sovereign bond spread at the start of this week. This spread is already elevated, at over 135bps. This could widen out towards 150bp, since political and social pressure are building at the same time as the country is trying to put together a fiscal tightening in its budget for next year. The newsflow from France could also impact the euro. The euro was down slightly vs. the USD last week, although at the start of the week it is below USD1.12. If these riots boost support for the anti-EU Marine Le Pen, then we may see further declines for the single currency."
Gold was quoted at USD4,185.51 an ounce, rising from USD4,176.55 late Friday afternoon. Brent oil was quoted at USD107.88 a barrel, up from USD106.06.
President Donald Trump has defended his approach to the war in Ukraine, saying he does not want to drive Russia away from the negotiating table as he seeks to broker peace.
"Great progress is being made" in efforts to end the war, Trump wrote on his Truth Social platform on Sunday.
US Secretary of State Marco Rubio said that President Trump's waiver of sweeping sanctions and tariffs on Russia would be a 60-day pause to "analyse" their impact on the global economy.
Meanwhile, Saudi Arabia announced on Sunday that it had intercepted more drones and missiles, which it said were fired by Yemen's Houthis, as the oil-rich monarchy is locked in a military escalation with the Iranian-aligned militia.
Saudi air defences intercepted two ballistic missiles launched by the Houthis towards the south-western city of Khamis Mushait, the Saudi-led military coalition said.
Monday's local corporate calendar has full-year results from ITM Power and Tristel.
By Eric Cunha, Alliance News news editor
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