London stocks are set for a weaker open on Thursday as investors monitor renewed diplomatic efforts between the United States and Iran and digest improving UK consumer confidence and another mixed session on Wall Street.
FTSE 100 futures point to an opening decline of around 24 points, or 0.2%, after the index gained 0.3% on Wednesday to close at 10,461.63.
Market sentiment remains focused on developments in the Middle East after US Secretary of State Marco Rubio said technical negotiations between Washington and Tehran are expected to resume in Switzerland on either 29 or 30 June. Rubio also reassured Gulf allies that the United States would continue to safeguard their security interests, helping to support hopes of a lasting diplomatic resolution.
In the UK, fresh data from the British Retail Consortium showed consumer confidence improved modestly in June. Expectations for the UK economy over the next three months rose to -43 from -48 in May as easing tensions in the Middle East helped reduce concerns over energy prices and inflation.
Currency markets were relatively stable, with sterling edging higher against both the US dollar and the euro. Meanwhile, Brent crude extended its recent decline, falling to around $72.50 a barrel as traders continued to price in lower geopolitical risk following progress in US-Iran negotiations.
Wall Street finished mixed overnight. The Dow Jones Industrial Average gained 0.4%, while the S&P 500 slipped 0.1% and the Nasdaq Composite fell 0.4% as investors continued to rotate out of some technology stocks.
Asian markets delivered a mixed performance. Japan’s Nikkei 225 surged 4.4%, outperforming regional peers, while Hong Kong’s Hang Seng fell 1.7%. China’s Shanghai Composite edged 0.2% higher and Australia’s S&P/ASX 200 declined 0.4%.
Gold prices also continued to retreat, falling below $4,000 an ounce to $3,983.81 as demand for safe-haven assets eased.
Investors will be watching a busy corporate calendar, with full-year results due from Moonpig, Wise and Halfords.
