FTSE 100 expected to open lower after US markets failed to hold onto early gains and ended the session lower.
Spread betting companies are calling London’s blue chip index down by around 40 points.
The Dow closed Thursday down 173 points, 0.6%, at 30,962, the Nasdaq Composite lost 167 points, 0.4%, to 11,552 and the S&P 500 shed 45 points, 1.1%, to 3,901. Thursday marked the Dow's lowest close since July 14.
Michael Hewson chief market analyst at CMC Markets UK said “Concerns about a global recession are also growing, manifesting themselves by way of weakness in commodity prices, crude oil prices slumping by over 3% yesterday, while natural gas prices on both sides of the Atlantic also plunged sharply.”
“These fears have translated into further weakness in Asia this morning with the latest Chinese retail sales and industrial production data for August offering some encouragement of an economic improvement, but unable to turn around the wider negative tone, with European markets set to open lower.”
In the UK retail sales figures are due and are expected to show a fall of 0.5% in August.