London stocks are expected to open marginally higher on Tuesday, as investors balance rising inflation pressures with ongoing geopolitical uncertainty.
Futures indicate the FTSE 100 will edge up just 3.5 points to 10,131, following a 1.6% gain on Monday.
UK shop price inflation showed a slight uptick, with prices rising 1.2% year-on-year in March, up from 1.1% in February, according to the British Retail Consortium. The increase reflects rising supply chain costs linked to the Middle East conflict, adding to concerns about persistent inflation.
Geopolitics remain firmly in focus. Donald Trump reiterated threats against Iran’s energy and infrastructure assets if a deal is not reached soon, while also claiming the US is engaged in talks with Iranian parliamentary speaker Mohammad Bagher Qalibaf.
Meanwhile, UK financials are in the spotlight after the Financial Conduct Authority confirmed it will proceed with a motor finance redress scheme, expected to cost lenders around £9.1 billion. Major institutions including Lloyds Banking Group, Barclays, and Santander are among those exposed.
Globally, markets remain mixed. Wall Street closed unevenly overnight, while Asian equities traded mostly lower, reflecting continued caution.
With oil still elevated—Brent hovering around $107 a barrel—and gold prices rising, markets continue to be shaped by the interplay of inflation risks and geopolitical developments.
