London stocks are set for a modestly higher open on Friday, with markets remaining cautious as attention centres on potential US-Iran peace talks.
Futures indicate the FTSE 100 will open 13.6 points higher, or 0.1%, at 10,603.59. The index closed up 0.3% at 10,589.99 on Thursday.
In currency markets, sterling edged lower to USD1.3517 from USD1.3532 at the previous London close, and slipped to EUR1.1474 against the euro. The euro strengthened slightly to USD1.1782, while the dollar rose to JPY159.49 against the yen.
Geopolitics remain a key driver. Donald Trump said the US and Iran are “very close” to reaching a peace agreement, adding he would consider travelling to Pakistan to formalise a deal. He noted that Tehran had agreed to hand over its enriched uranium stockpile as negotiations progress.
Trump also credited Shehbaz Sharif and Asim Munir for facilitating talks, while defending recent military action as necessary.
Separately, a 10-day ceasefire between Israel and Lebanon has come into effect, with Trump signalling hopes of hosting further diplomatic talks between the two nations.
Oil prices eased slightly, with Brent crude trading at USD98.06 per barrel, down from USD98.39 on Thursday.
Back in the UK, Chancellor Rachel Reeves said the government continues to engage “constructively” with the US despite tensions linked to the Iran conflict, emphasising the mutual benefits of last year’s trade agreement.
On Wall Street, equities closed higher on Thursday. The Dow Jones Industrial Average rose 0.2%, the S&P 500 gained 0.3%, and the Nasdaq Composite added 0.4%.
In corporate news, Netflix shares fell 9.6% in after-hours trading after the company announced that co-founder and chair Reed Hastings will step down in June and issued softer-than-expected second-quarter revenue guidance.
Despite the reaction, Netflix reported strong first-quarter results, with net income rising to USD5.28 billion from USD2.89 billion and revenue increasing 16% to USD12.25 billion, driven by subscriber growth, pricing gains and advertising. The company maintained its full-year revenue forecast of USD50.7 billion to USD51.7 billion, alongside a 31.5% operating margin outlook.
Asian markets were weaker on Friday. Japan’s Nikkei 225 fell 1.0%, while China’s Shanghai Composite dipped 0.2% and Hong Kong’s Hang Seng Index declined 1.3%. Australia’s S&P/ASX 200 closed 0.2% lower.
Gold prices edged down to USD4,797.95 per ounce from USD4,802.13, as risk sentiment showed tentative signs of stabilisation.
