Key facts
- The FTSE 100 is expected to open lower after reaching record highs.
- The Bank of England is anticipated to hold interest rates steady.
- US and Iran have exchanged strikes, increasing Middle East tensions.
- Brent crude oil prices jumped over six percent following President Trump's warning to Iran.
- US stock markets, including the Nasdaq and S&P 500, experienced gains overnight.
The FTSE 100 is expected to open lower on Friday, following two consecutive days of record gains, as investors digest the Bank of England's decision to hold interest rates steady. The Monetary Policy Committee (MPC) voted to leave rates unchanged, though the number of members advocating for a hike increased. Governor Andrew Bailey suggested it is premature to declare a prolonged period of high inflation.
Meanwhile, US stock markets saw significant gains overnight, with the tech-heavy Nasdaq and the S&P 500 both rising. This occurred despite heightened geopolitical tensions in the Middle East, following US strikes on Iran and its proxies, and retaliatory actions claimed by Iran's Revolutionary Guard Corps. Brent crude oil prices surged over six percent in response to President Trump's warning to Iran.