London stocks are expected to open lower on Wednesday as renewed US military action against Iran pushed oil prices higher, while investors assessed mixed economic data from China.
FTSE 100 futures point to a decline of around 40 points, more than reversing Tuesday’s 31-point gain, when the index closed at 10,529.39.
Brent crude rose to US$85.16 a barrel from US$84.00 late Tuesday as US forces carried out strikes against Iran for a fourth consecutive day and reimposed a naval blockade on Iranian ports.
US President Donald Trump also warned that strikes could be expanded next week to include power plants and bridges unless Tehran agreed to negotiate.
Wall Street ended higher overnight, with the S&P 500 up 0.4% and the Nasdaq Composite gaining 0.9%.
Asian markets were mixed. Japan’s Nikkei rose 1.2% and Hong Kong’s Hang Seng gained 1.6%, while the Shanghai Composite was marginally lower.
China’s economy grew 4.3% year-on-year in the second quarter, slowing from 5.0% in the first quarter and missing expectations for 4.5% growth.
Industrial production was stronger than forecast, rising 5.3%, while retail sales increased 1.0%.
Sterling strengthened slightly to US$1.3405, while gold eased to US$4,030 an ounce.
In corporate news, ASML reported a 27% rise in second-quarter net income to EUR2.92 billion and forecast 2026 net sales of between EUR43 billion and EUR45 billion.
Wednesday’s UK corporate calendar includes updates from Antofagasta, Barratt Redrow, Ferrexpo, Galliford Try, Rio Tinto and Workspace Group.
Investors will also watch US producer price inflation, the New York Empire State manufacturing index and the Bank of Canada’s interest rate decision.
