London equities were poised for a weaker start on Tuesday as elevated oil and gold prices reflected persistent geopolitical strain.
Futures suggest the FTSE 100 will open 62 points, or 0.6%, lower on Tuesday. The benchmark index of London blue-chips ended Monday’s session down 1.2% at 10,780.11.
In currency markets, sterling edged up to USD1.3362 early Tuesday from USD1.3360 at the close of London trading on Monday. The euro slipped to USD1.1665 from USD1.1672, while the dollar eased against the yen to JPY157.26 from JPY157.73.
On Wall Street, trading was mixed on Monday. The Dow Jones Industrial Average fell 0.2%, the S&P 500 was little changed, and the Nasdaq Composite gained 0.4%.
Asian markets were broadly lower on Tuesday. Japan’s Nikkei 225 dropped 3.3%. In China, the Shanghai Composite fell 1.5%, while Hong Kong’s Hang Seng Index declined 0.8%. Australia’s S&P/ASX 200 finished 1.3% lower.
Gold climbed to USD5,312.76 an ounce early Tuesday from USD5,288.00 on Monday. Oil prices climbed for a third consecutive session after Iran’s Revolutionary Guards announced plans to shut down the strategically crucial Strait of Hormuz. Brent crude, the global benchmark, surged by as much as 3.5 percent, pushing it back above the $80-per-barrel mark amid mounting concerns that worldwide oil and gas supplies could face significant disruption.
