The FTSE 100 is expected to open slightly lower on Wednesday as investors seem content to sit on their hands following yesterdays bloodbath on Wall Street.
Spread-better's IG expect the blue-chip index to open down around 5 points after ending Tuesdays session 7 points lower at 5,930.
Traders appear to have been rattled by the performance of the US markets overnight, which saw the Dow Jones Industrial Average close 2.25% lower at 27,500 while the S&P 500 fell 2.78% to 3,331 and the Nasdaq slumped 4.11% to 10,847.
The tech-heavy Nasdaq is now trading at around 10% off its record high on September 2, placing it in correction territory and worrying many investors that the tech bubble may finally be bursting.
News from pharma giant AstraZeneca PLC (LON:AZN) that it is putting its coronavirus vaccine trials on hold and increased tensions between the US and China on trade also seem to have added to the general negative turn in market sentiment.
The selloff in tech also gathered pace in the Asian markets on Wednesday morning, with Japans Nikkei 225 down 1.16% while Hong Kongs Hang Seng dropped 0.91%.
On currency markets, the pound was slightly lower against the dollar, down 0.08% at US$1.297, as fears continued to swirl around the prospect of a no-deal Brexit at the end of the transition period this year. A recent strong performance for the dollar as a haven asset has also added some pressure to sterling.
Around the markets:
Sterling: US$1.297, down 0.08%
Brent crude: US$39.69 a barrel, down 0.2%
Gold: US$1,932 an ounce, up 0.1%
Bitcoin: US$10,123, down 1.6%
6.45 am: Early Markets: Asia / Australia
Mainland Chinese stocks were lower today with the Shanghai composite slipping 1.31% while Hong Kongs Hang Seng index shed 0.92%.
In Japan, the Nikkei 225 fell 1% and South Koreas Kospi also slipped 0.77%.
In Australia, the S&P/ASX 200 dropped 2.43% after Wal Street closed lower for a third straight session overnight in the US.
Proactive Australia news:
Australian Vanadium Ltd (ASX:AVL) is higher after signing a memorandum of understanding (MOU) for potential offtake of vanadium products with Enerox GmbH, a global market leader of CellCube vanadium redox flow battery (VRFB) energy storage systems.
Tietto Minerals Ltd (ASX:TIE) has received high-grade gold results from four areas within the 2.2-million-ounce Abujar Gold Project in Côte dIvoire, West Africa, demonstrating the gold mineralised systems continued growth.