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Caution Continues to Dominate in London

WT24 Desk

Shares in London are expected to edge lower at Friday’s open as investors continue to exit risky stocks and retreat to safe assets, WSJ reports.

The crosscurrents of a near-record high for the S&P 500, ultra-low government bond yields, a weakening dollar and climbing oil prices have caused a murky environment for investors just as the Fed is scheduled to meet next week and the UK is set to vote later this month on whether to remain in the EU.

“Investors face some tough decisions right now about where to put their money,” said Richard Turnill, BlackRock’s global chief investment strategist.

Major US indexes fell slightly on Thursday but remained near all-time highs even as bond yields plumbed their lows— a shift from earlier this year when fears of a US recession dragged them down together.

In Asia, markets suffered broad-based losses as worries resurfaced about the uncertain direction of global economic growth.

Oil prices moved higher though, with Brent re-approaching $52. Traders said that the latest fall in US stockpiles and continuing supply outages are strengthening the view that the market is veering towards a deficit.

The Bank of England Quarterly Inflation Attitudes Survey is the main economic data release in the UK on Friday.

Snapshot at 5.11am BST•

  • FTSE 100 seen -0.1%
  • Brent crude -0.3% at $51.81 per barrel; gold -0.2% at $1270.48 per troy ounce
  • Euro at $1.129; sterling at $1.4449
  • Japan’s Nikkei -0.9%; China’s Shanghai Composite closed
  • Dow Jones Industrial Average closed -0.1%; S&P 500 closed -0.2%

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