London stocks are expected to open modestly higher on Monday after the United States and Iran agreed to halt military strikes and resume diplomatic talks, easing concerns over disruption to global energy supplies.
Futures point to the FTSE 100 to open around 6 points higher after the index ended Friday down 0.2% at 10,508.02.
Investor sentiment has been supported by reports that Washington and Tehran have agreed to suspend hostilities and meet in Qatar on Tuesday to continue negotiations over the Strait of Hormuz, one of the world’s most important oil shipping routes.
Two senior US officials told American media that both sides had agreed to stop “kinetic activity” for now, while vessels would be allowed to move freely through the strategic waterway as diplomatic discussions continue.
Despite the improved geopolitical backdrop, Brent crude edged higher to around US$72.70 a barrel, while gold slipped as investors reduced demand for traditional safe-haven assets.
Burnham outlines economic vision
In UK politics, Labour leadership frontrunner Andy Burnham is expected to unveil an ambitious programme centred on economic devolution, infrastructure investment and regional growth.
Speaking in Manchester, Burnham will outline plans for what he describes as a “10-year mission” to boost living standards through reindustrialisation, housing and infrastructure, while proposing a significant transfer of powers from Whitehall to local communities.
Trump renews tariff warning
Meanwhile, US President Donald Trump has warned that European exports could face 100% tariffs if countries proceed with digital services taxes targeting American technology companies.
Posting on Truth Social, Trump said any nation introducing such taxes would immediately face punitive tariffs on goods exported to the United States.
Markets
Asian markets were mixed overnight. Hong Kong’s Hang Seng rose 1.9%, while China’s Shanghai Composite gained 0.7%, although Japan’s Nikkei 225 slipped 0.8%.
On Wall Street on Friday, the Dow Jones Industrial Average fell 0.1%, while both the S&P 500 and Nasdaq Composite also finished modestly lower.
Investors will also be watching Monday’s economic calendar, which includes UK mortgage approvals, eurozone economic sentiment data and the Dallas Federal Reserve manufacturing survey in the United States.
