FTSE 100 Live: Stocks to open flat; Iran hits back at Trump ‘economic D-Day’ threat

Good morning, readers. The FTSE 100 prepares to open on Monday, with early trading forecasts a slight gain, according to IG futures. The index concluded last week at a high of 10,816 points, marking a 0.6% increase from Thursday's close. This positive outlook was tempered by a week filled with mixed trading, as investors weighed in on the latest US-Iran tensions and the US Treasury's efforts to curb a bond sell-off.

Borrowing costs in the US had hit their highest level since the 2008 financial crisis, reflecting concerns that the Trump administration's handling of public finances had faltered. Similar market volatility was observed in the UK and France. Iran's recent threats of "earthquake-like retaliation" against the United States, in response to President Trump's warning of an "economic D-Day" in Iran, added to the geopolitical uncertainty.

Dan Coatsworth, the head of markets at AJ Bell, noted that the global markets had lost momentum after a period of relative calm. The FTSE 100 outperformed many other indices, buoyed by resource stocks. Gold prices surged past $4,500, highlighting its role as a safe-haven asset and an effective hedge against inflation. As investors anticipate Nvidia's upcoming earnings results next week, market focus could shift back to corporate earnings.

However, the autumn season may bring a more cautious sentiment to the markets, as Federal Reserve Chair Kevin Warsh prepares to address the Jackson Hole meeting at the end of the month. Stay tuned for the latest market updates and analysis.