London stocks are expected to edge higher on Tuesday as investors await the latest UK economic growth figures, while uncertainty persists over Middle East diplomacy after Iran denied US claims that fresh nuclear negotiations are imminent.
Futures point to the FTSE 100 to open around 14 points higher, recovering some of Monday’s losses after the blue-chip index closed down 0.2%.
Market sentiment remains focused on developments in the Middle East after Iran rejected US President Donald Trump’s suggestion that talks would resume in Qatar, with Tehran insisting no negotiations with Washington are currently scheduled. Brent crude traded slightly higher at US$73.48 a barrel as geopolitical tensions continued to support oil prices.
Back in the UK, fresh figures from the British Retail Consortium showed shop price inflation remained unchanged at 1.2% in June, as intense competition and seasonal discounting helped offset broader inflationary pressures. Food inflation eased to 2.4%, while non-food inflation edged slightly higher.
Overnight, Wall Street finished firmly higher, with the Nasdaq rising 2.1%, the S&P 500 gaining 1.2% and the Dow Jones adding 0.6%, providing a positive lead for European markets.
In Asia, Japan’s Nikkei 225 climbed 1.5%, supported by steady employment data, although industrial production missed expectations. Chinese markets were mixed, with the Shanghai Composite higher while Hong Kong’s Hang Seng slipped.
Investors will also be watching the UK government’s long-awaited defence investment plan, which is expected to outline increased spending on drones, autonomous weapons and military capabilities.
Attention later in the session will turn to UK GDP data, alongside inflation figures from France and Germany, while corporate updates are due from J Sainsbury and Cake Box.
