London markets look set for a firmer open on Monday, extending a strong rebound in the FTSE 100 after the index surged 17.5% from its April 7 low.
The rally included an impressive 16-session winning streak, underlining renewed investor confidence despite mounting geopolitical and economic uncertainty.
Futures point to the FTSE 100 opening 26 points higher at 10,259.27, after the benchmark closed 0.4% lower at 10,233.07 on Friday.
Investor sentiment remains heavily influenced by developments in the Middle East, with oil prices climbing sharply amid intensifying tensions between the US and Iran. Brent crude traded above USD105 per barrel early Monday, up from USD101.49 at the end of last week.
US President Donald Trump criticised Iran’s response to a US-backed proposal aimed at de-escalating regional conflict, describing Tehran’s position as “totally unacceptable.” Reports from Iranian state media suggest Tehran demanded compensation and formal recognition of its authority over the Strait of Hormuz, while also calling for an end to fighting across the region, particularly in Lebanon.
The renewed uncertainty surrounding negotiations has added to concerns over global energy supply disruption and broader market volatility.
Currency markets were also active. Sterling weakened against both the dollar and euro, with the pound trading at USD1.3581 and EUR1.1559 respectively. Meanwhile, the euro slipped slightly against the dollar, while the greenback strengthened versus the yen.
On Wall Street, US equities ended Friday higher, led by technology stocks. The Nasdaq Composite gained 1.7%, while the S&P 500 rose 0.8%. The Dow Jones Industrial Average closed marginally positive.
Asian markets were mixed on Monday. Japan’s Nikkei 225 fell 0.4%, while China’s Shanghai Composite rose 0.9%. Hong Kong’s Hang Seng was little changed.
Chinese economic data surprised to the upside, offering some support to global risk sentiment. Consumer inflation accelerated to 1.2% year-on-year in April, ahead of forecasts, while exports surged 14% and imports climbed 25%, signalling stronger-than-expected domestic and external demand.
Meanwhile, geopolitical tensions remained elevated in Eastern Europe after Russian President Vladimir Putin claimed the war in Ukraine was “winding down,” despite continued accusations of ceasefire violations between Moscow and Kyiv.
Safe-haven assets eased slightly, with gold prices falling to USD4,653 per ounce from Friday’s record levels above USD4,700.
