Concerns over the state of the U.K. economy have intensified, as investors and businesses brace for the impact of new fiscal policies set to increase taxes and business costs. Weak economic data from Britain is further exacerbating these concerns, along with persistent inflationary pressures that continue to grip the economy. On Friday, the British pound continued its downward trajectory, hitting its lowest level against the U.S. dollar in over a year.
The U.K. government has seen its borrowing costs spike, driven by worries about weak economic data and the potential adverse effects of new tax-raising policies on business growth. Meanwhile, stock futures on Wall Street slipped on Friday, with investors anticipating the release of December's nonfarm payrolls data. Economists surveyed by Reuters expect a slowdown in job openings compared to the previous month.
In Europe, attention turns to the upcoming release of Germany's trade balance data for November, scheduled for Thursday. The data release is expected to provide further insights into the economic health of one of Europe's largest economies.
Despite the challenging economic landscape in the U.K., the FTSE 100 index is projected to open 13 points higher at 8,256. Other European markets are also expected to see gains, with Germany's DAX anticipated to open 44 points higher at 20,361, France's CAC predicted to rise by 8 points to 7,454, and Italy's FTSE MIB forecasted to increase by 2 points to 35,210.
In corporate news, shares of Ubisoft dropped more than 8% by 8:17 a.m. London time after the gaming company appointed strategic advisors to review its options. This move comes amid broader market volatility and investor apprehension about future business strategies.