UK Stock Market Forecast Today (August 7): FTSE 100 Expected to Start in Cautious Mode Ahead of US Jobs Data- Check Stocks to Watch Today

FTSE 100 is expected to open slightly lower as investors remain cautious ahead of US jobs data, rising oil prices, and mixed corporate developments.

By: Nisha Srivastava
Last Updated: August 7, 2026 12:46:37 IST

UK Stock Market Forecast Today (August 7, 2026): UK equity markets are expected to open somewhat weaker on Friday, August 7, 2026, with FTSE 100 futures suggesting a decline of about 12 points (0.1%) to 10,855.89. Market participants are exhibiting great caution as they look ahead to the much-anticipated US non-farm payroll employment data due to be released later in the day.

UK Stock Market Forecast Today (August 7)

The FTSE 100 is likely to open on a cautious note today after ending Thursday slightly lower, with losses in major ex-dividend stocks offsetting optimism over progress toward reopening the Strait of Hormuz. The index was dragged down by declines in heavyweight companies including Lloyds, Barclays, Relx, and Reckitt Benckiser, which traded without entitlement to their latest dividend payments. Relx fell more than 4%, while defensive stocks such as AstraZeneca and Unilever also added pressure.

London Stock Market Forecast Today (August 7): FTSE 100 Market Outlook

The London Stock market sentiment may continue to be a mix of sentiments for investors analyzing new corporate news and international signals. The rise of more than 5.5% in shares of Diageo due to the announcement of a restructuring strategy and a target of saving up to $1 billion in costs in three years helped, whereas Persimmon was up more than 3% due to better-than-expected results. On the other hand, Tritax Big Box declined by 4% after placing £350 million in stocks for financing data centers’ expansion.

In terms of today’s trading, investors are likely to analyze international stock trends, oil prices, UK corporate news, bond yields, and geopolitics related to the Middle East region. Despite positive expectations concerning easing of the situation in the Strait of Hormuz, inflation worries and energy prices might limit gains on the FTSE 100 index.

UK Stock Market Forecast Today (August 7): UK Stocks to Watch Today

The FTSE 100 Index is expected to begin trading 12 points lower, down 0.1%, at 10,855.89 today after ending the previous session with a marginal decline of 0.2% at 10,867.89. Market sentiment is being influenced by a rise in Brent crude prices to $83.71 per barrel, newly announced US tariffs on polysilicon imports, and investor focus on the upcoming US nonfarm payrolls data. Despite these global pressures, the UK equity market remains relatively stable, supported by stronger-than-anticipated July services PMI figures, which indicate continued resilience in the domestic economy.

Stocks to Watch in the UK Market Today

  • EasyJet: The airline’s shares remain in focus after reports of an agreed £5.7 billion takeover deal, making it one of the key stocks to watch during today’s trading session.
  • Diageo: The spirits giant gained more than 5.5% in late trading yesterday after announcing a major restructuring programme aimed at improving efficiency and delivering $1 billion in cost savings.
  • Persimmon: The housebuilder is attracting investor attention after reporting a 13% increase in first-half home completions along with a positive outlook, supporting expectations of further share momentum.

UK Stock Market Forecast Today (August 7): What Should Investors Know?

The UK stock market is set for a cautious opening as rising Brent crude prices and the impact of recent ex-dividend moves among major blue-chip companies put pressure on investor sentiment. The FTSE 100 Index is targeting the key 11,000 mark, with recent strong corporate earnings providing support. However, concerns over global economic conditions and upcoming US labour market data are keeping investors cautious, creating a mixed outlook for the near-term direction of the index.

Disclaimer: The information provided in this article is for informational purposes only and should not be considered as financial advice. The Sunday Guardian suggests that readers must consult with a certified financial advisor before making any investment or money-related decisions. The stock market involves significant risk. 

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