Source: Sharecast
The FTSE 100 was called to open around 10 points lower.
By Ipek Ozkardeskaya, senior analyst at Swissquote Bank, said: "The week kicks off on a mixed note. Last week’s Federal Reserve (Fed) rate cut gave markets a boost, but news that the Bank of Japan (BoJ) will begin reducing its ETF holdings unsettled global risk sentiment on Friday.
"The Nikkei came under notable selling pressure, the Stoxx 600 and FTSE 100 traded slightly bearish, but Wall Street shrugged it off: the S&P 500 and Nasdaq both advanced to fresh record highs as the US 2-year yield consolidated just below 3.60% and the 10-year rose to 4.41%.
"On the geopolitical front, Trump and Xi reportedly held a constructive call. Details remain scarce, but progress was reported on TikTok, and the two leaders will revisit trade and tariffs in the coming weeks. Meanwhile, Australia, Canada and UK recognized the state of Palestine that could revive geopolitical tensions as the move didn’t please Israel and the US..."
Earlier, the People’s Bank of China kept the one-year and five-year loan prime rates (LPR) unchanged, in line with market expectations.
"While there is pressure for more stimulus, broad-based rate cuts may not be the preferred tool for China as they are also concerned about fuelling a liquidity-driven equity bubble. We expect more targeted stimulus measures coming soon," said Danske Bank.
UK corporate news was thin on the ground, but AstraZeneca and Amgen said their Tezspire drug has been recommended for approval in the European Union for the treatment of adult patients with chronic rhinosinusitis with nasal polyps.
The European Medicines Agency based its positive opinion on results from a phase 3 trial, which demonstrated a "statistically significant and clinically meaningful reduction” in nasal polyp severity and removed the need for surgery in 98% of cases.
Business consultancy Elixirr International reported record interim results and reiterated its full-year forecasts, with the outlook bolstered by last week’s acquisition of US strategy consultancy TRC.
The company reported a 35% increase in first-half revenues to £71.4m, with organic revenues up 17%, while adjusted EBITDA surged 42% to £21.5m.
