London stocks are expected to open lower on Monday as renewed tensions in the Middle East pushed oil prices sharply higher and weighed on investor sentiment.
Futures indicate the FTSE 100 will open around 25 points, or 0.2%, lower at 10,472.49. The blue-chip index closed 0.2% higher at 10,497.29 on Friday.
Brent crude climbed to US$79.39 a barrel in early trading, up from US$75.86 late Friday, as investors assessed renewed hostilities between the US and Iran and conflicting claims over the status of the Strait of Hormuz.
US President Donald Trump said the strategically important waterway was open, contradicting statements from Iran that it had once again been closed following the latest escalation.
The US military also said it had completed a fresh round of strikes against Iranian military targets aimed at preventing further attacks on shipping in the Strait of Hormuz.
US Central Command said the strikes targeted air-defence systems, coastal radar sites, missile and drone capabilities and small boats.
Currency markets were softer for sterling, which traded at US$1.3380 early Monday, down from US$1.3419 at Friday’s London close.
Against the euro, the pound eased to EUR1.1730 from EUR1.1737.
The euro slipped to US$1.1403 from US$1.1434, while the dollar strengthened against the yen to JPY162.04 from JPY161.49.
Back in the UK, Chancellor Rachel Reeves is expected to unveil a package of measures aimed at boosting small business growth in her Mansion House speech on Tuesday.
The measures are expected to include a £6.5 billion expansion of the government’s Growth Guarantee Scheme, which provides a 70% state guarantee on commercial loans to small and medium-sized businesses.
The British Business Bank estimates the expanded scheme could support around 33,000 businesses over the next three years.
The government is also expected to extend the maximum loan term from six years to 10 years, increase the turnover eligibility threshold to £54 million from £45 million and introduce further support for companies seeking to expand exports.
On Wall Street, US markets closed higher on Friday. The Dow Jones Industrial Average rose 0.3%, the S&P 500 gained 0.4% and the Nasdaq Composite added 0.3%.
In corporate news, Apple has filed a lawsuit against OpenAI in a California federal court, alleging that the artificial intelligence company orchestrated a campaign to obtain Apple trade secrets and confidential information to accelerate development of its consumer hardware business.
The lawsuit names OpenAI, its hardware subsidiary io Products, chief hardware officer Tang Yew Tan and engineer Chang Liu as defendants.
Apple alleges that former employees were recruited to provide information relating to unreleased technologies, products and manufacturing processes.
OpenAI has rejected the allegations, saying it has no interest in other companies’ trade secrets and remains focused on developing its own technology.
In Asia, markets were mostly weaker on Monday.
Japan’s Nikkei 225 fell 2.6%, while China’s Shanghai Composite dropped 1.3%. Hong Kong’s Hang Seng rose 0.3%, while Australia’s S&P/ASX 200 was marginally lower.
Gold was quoted at US$4,064.00 an ounce, down from US$4,101.39 on Friday.
