London stocks are set for a weaker start on Monday as investors weigh renewed uncertainty surrounding US-Iran peace negotiations alongside a rebound in oil prices ahead of a busy session of global manufacturing data.
Futures indicate the FTSE 100 will open around 25 points lower at 10,384.28, following a modest decline on Friday.
Market sentiment has been tempered by comments from Iran’s chief negotiator, Mohammad Bagher Ghalibaf, who warned that Tehran would not accept any agreement with Washington unless Iran’s rights were fully protected, underscoring the significant differences that remain between the two sides.
The remarks follow reports that US President Donald Trump has submitted a revised peace proposal to Iran, with negotiations continuing over key issues including Iran’s nuclear programme and the future of the Strait of Hormuz.
The renewed uncertainty pushed Brent crude higher to US$93.28 a barrel, reversing part of last week’s decline as traders reassessed the likelihood of a near-term diplomatic breakthrough.
Meanwhile, International Atomic Energy Agency chief Rafael Grossi revealed that Kazakhstan has indicated a willingness to store Iran’s enriched uranium stockpile should a broader nuclear agreement eventually be reached.
In currency markets, sterling edged lower against the dollar at US$1.3463, while the euro softened to US$1.1651. Gold eased to US$4,520 an ounce after recent safe-haven gains.
Investors will also be monitoring global manufacturing data throughout the day. Japan’s manufacturing sector remained firmly in expansion territory despite a modest slowdown, while China’s factory activity continued to grow for a sixth consecutive month. Australian manufacturing also remained positive, although higher energy costs and supply chain disruption linked to the Middle East conflict continued to weigh on business activity.
On Wall Street, US equities finished higher on Friday, with the Dow Jones Industrial Average gaining 0.7% and both the S&P 500 and Nasdaq Composite advancing 0.2%.
Attention will also focus on Paris, where President Emmanuel Macron hosts the annual “Choose France” investment summit, with major commitments expected in artificial intelligence, data centres and digital infrastructure.
