London stocks are set to open lower on Friday as investors digest the political fallout from Labour’s Makerfield by-election victory and continue to assess the implications of the US-Iran peace agreement.
FTSE 100 futures indicate the index will open around 30 points lower, down 0.3%, after the blue-chip benchmark ended Thursday’s session 1.0% weaker.
Sterling came under pressure overnight, slipping against both the US dollar and euro, while the dollar strengthened against the Japanese yen.
In UK politics, Andy Burnham secured a decisive victory in the Makerfield by-election, winning almost 25,000 votes and beating Reform UK’s Robert Kenyon by more than 9,000 votes. The result has fuelled speculation about Labour’s future leadership, with Burnham renewing calls for change within the party and leaving the door open to a potential leadership challenge.
Attention now turns to key UK economic releases, including retail sales and public sector borrowing figures. Consumer confidence remained weak in June, although the latest GfK survey held steady at minus 23, defying expectations for a further deterioration.
Wall Street closed higher on Thursday, with technology stocks leading gains. The Nasdaq rose 1.9%, the S&P 500 added 1.1% and the Dow Jones Industrial Average edged 0.1% higher. US markets are closed on Friday for the Juneteenth holiday.
Meanwhile, debate continues over President Donald Trump’s agreement with Iran. While supporters view the deal as a pragmatic step towards restoring stability and reopening critical energy routes, critics argue it could provide Tehran with significant economic benefits without securing stronger commitments on nuclear activity, missile development or regional influence.
Trump has defended the agreement, describing it as a pathway to peace while warning that military action remains an option should negotiations fail.
Brent crude recovered to just under $80 a barrel, while gold eased from recent highs. In Asia, Japan’s Nikkei 225 fell despite a modest rise in inflation, while Australia’s S&P/ASX 200 dropped more than 1%. Markets in mainland China and Hong Kong remained closed for public holidays.
Investors will also be watching corporate updates from Cordiant Digital Infrastructure and Record, alongside economic data from the UK and Germany later in the day.
