The FTSE 100 is expected to open higher on Monday, buoyed by renewed hopes for US-Iran diplomacy and a sharp fall in oil prices.
Futures point to London’s blue-chip index opening around 35 points higher at 10,900.95, after ending Friday down 0.3% at 10,868.05.
Brent crude has dropped to US$83.32 a barrel, from US$90.12 on Friday, after US President Donald Trump said fresh negotiations with Iran will begin on Monday, raising hopes of easing tensions in the Middle East.
In corporate news, the Financial Times reported that AstraZeneca and Bristol-Myers Squibb have held discussions over a potential US$400 billion merger, which would rank among the largest pharmaceutical deals ever proposed.
Asian markets were mixed overnight. Japan’s Nikkei 225 fell 1.2% after the US and Japan jointly intervened to strengthen the yen, while weaker-than-expected Chinese manufacturing data weighed on sentiment. The Shanghai Composite fell 0.8%, although Australia’s S&P/ASX 200 edged 0.2% higher.
Wall Street ended Friday on a positive note, with the Dow Jones gaining 0.5%, the S&P 500 rising 0.7%, and the Nasdaq adding 1.0%.
Investors will also be watching a busy day of manufacturing PMI releases across Europe, the UK and the US, while UK-listed companies Senior, Clarkson and FDM Group are due to report half-year results.
