London stocks are set for a softer open on Wednesday as investors await the latest UK inflation data, with markets also digesting developments in the Middle East.
Futures indicate the FTSE 100 will open 11.9 points lower at 10,486.19. The index closed down 1.1% at 10,498.09 on Tuesday.
In currency markets, sterling edged up to USD1.3526 from USD1.3507 at the previous close, and ticked higher to EUR1.1509 against the euro. The euro also firmed slightly to USD1.1753, while the dollar eased against the yen to JPY159.19.
Geopolitically, Donald Trump extended the US ceasefire with Iran indefinitely to allow more time for negotiations, though he confirmed the naval blockade of Iranian ports will remain in place. The move followed a request from Pakistan, which is acting as a mediator, as talks hinge on Tehran submitting a formal proposal.
A White House official said Vice President JD Vance would not travel to Pakistan as planned, pending further developments.
Oil prices edged lower, with Brent crude at USD97.69 per barrel from USD98.03, while gold rose to USD4,769.60 per ounce from USD4,744.11.
On Wall Street, stocks closed lower on Tuesday, with the Dow Jones Industrial Average, S&P 500 and Nasdaq Composite all falling around 0.6%.
Asian markets were mixed. Japan’s Nikkei 225 rose 0.3% and China’s Shanghai Composite gained 0.3%, while Hong Kong’s Hang Seng Index dropped 1.4% and Australia’s S&P/ASX 200 fell 1.1%.
