Source: Sharecast
The FTSE 100 was called to open around 10 points lower.
Danske Bank said: "Deep partisan divisions have prevented Congress and the White House from reaching a funding agreement. The direct macroeconomic impact is expected to be limited, but markets are likely to focus on two key implications: potential delays in the publication of US economic data, particularly the September non-farm payrolls employment report, and the potential layoffs of public sector workers as highlighted by the White House.
"While these factors may not significantly alter the macroeconomic outlook, they could, all else being equal, modestly increase the likelihood of the Fed considering a rate cut in October."
On home turf, the latest data from Nationwide showed that house prices nudged higher in September, as the market continued to shake off wider economic uncertainty.
The average house price now stands at £271,995, having risen 0.5% month-on-month, reversing August’s 0.1% dip. Consensus had been for a 0.2% uplift.
Year-on-year, house prices rose by 2.2%, little changed on August’s 2.1% but ahead of forecasts for a 1.8% rise.
Robert Gardner, Nationwide’s chief economist, said: "Despite ongoing uncertainties in the global economy, underlying conditions for potential home buyers in the UK remain supportive.
"Unemployment is low, earnings are rising at a healthy pace, household balance sheets are strong and borrowing cost are likely to moderate a little further if Bank Rate is lowered in the coming quarters as we, and most other analysts, expect."
The Bank of England has adopted a cautious approach to monetary policy, as it tackles persistent above-target inflation. So far it has cut rates three times this year, to 4%.
Most analysts agree that the current rate-cutting cycle has not yet ended, but are divided as to when the next reduction will come.
Gardner added: "Providing the broader economic recovery is maintained, housing market is likely to strengthen gradually in the quarters ahead."
In corporate news, Taylor Wimpey reiterated its guidance for 2025 after a "robust" sales performance over the third quarter, but said it was mindful of various issues currently affecting customer sentiment, such as the impact of the delayed autumn budget.
The housebuilder said it remains on track to achieve 10,400 to 10,800 completions in the UK (excluding joint ventures) this year, and expects to hit its operating profit target of £424m, which was lowered in July.
Tate & Lyle warned that it expects a slowdown in market demand to weigh on its near-term performance, with interim group revenues now expected to be 3% to 4% lower in constant currency terms and underlying earnings seen a "high-single digit percent" lower.
For the six months ended 30 September, Tate & Lyle said revenue in the Americas was expected to be "slightly lower", reflecting "softer consumer demand", while Europe, Middle East, and Africa will see a mid-single digit percentage decrease.
Asia Pacific revenues were expected to be broadly in line.
For the full year, Tate & Lyle now expects both revenue and EBITDA to decline by a "low single-digit percent" compared to pro forma comparatives.
BHP Group said it will invest further in its Olympic Dam project in order to boost its copper base and production of the metal.
The miner will funnel roughly £411m into construction of a new tunnel to tap into copper deposits in the Southern Area of the mine, together with the infrastructure needed to expand ore processing.
The company's stated goal was to boost annual production of copper cathode from 322,000 tonnes in 2024 to 500,000 tonnes by early the next decade.