The FTSE 100 is expected to open slightly higher on Monday, with futures indicating a 0.1% increase to 9,100.73. The index closed down 5.04 points on Friday. US inflation data and UK economy and labour market readings will be released later in the week. Sterling rose to USD1.3468 on Monday, while the yield on the US 10-year Treasury faded to 4.28%. A senior central bank official called for proactive interest rate cuts to guard against further weakening in the labour market.
The FTSE 100 is anticipated to open slightly higher on Monday, according to futures data. Futures indicate a 0.1% increase, bringing the index to 9,100.73 [3]. This follows a 5.04-point decline on Friday, closing at 9,095.73. The market is poised to react to upcoming economic data releases, including US inflation figures and UK unemployment and GDP readings later in the week [3].
Sterling gained ground, rising to USD1.3468 on Monday, while the yield on the US 10-year Treasury eased to 4.28% [3]. A senior central bank official has called for proactive interest rate cuts to mitigate further weakening in the labor market [3].
Key corporate events include half-year results from building materials company Marshalls, housebuilder Persimmon, insurer Aviva, and betting firm Entain later in the week [3].
In related news, Rolls-Royce recently offloaded £4.3 billion ($5.78 billion) from its balance sheet by transferring its pension fund to Pension Insurance Corporation. This move is part of a broader trend among UK companies to streamline operations and prepare for long-term changes [1]. Additionally, Spectris rejected Advent's offer in favor of a $6.4 billion deal with KKR, highlighting fierce dealmaking activity in the sector [1].
The FTSE 100's cautious climb reflects lingering uncertainty, with slow hiring pointing to pressure on growth-sensitive sectors. Global shifts in commodity prices and deal activity may influence investor focus in the coming days [1]. Weak hiring and wage growth flag ongoing headwinds for UK workers and spending, while central bank moves remain a source of uncertainty [1].
References:
[1] https://finimize.com/content/ftse-100-to-open-higher-as-rolls-royce-offloads-pension-fund
[2] https://www.nasdaq.com/articles/ftse-100-modestly-higher-hiscox-soars-9
[3] https://www.lse.co.uk/news/london-market-early-call-ftse-100-to-edge-up-before-us-uk-data-c6pdo4wypbcy2wq.html
[4] https://www.cnbc.com/2025/08/06/10-year-treasury-yield-ticks-higher-ahead-of-bond-auctions.html
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