London’s FTSE 100 is expected to open higher on Tuesday, 10 November, as growing hopes of a diplomatic resolution to the US-Iran conflict, falling oil prices and a strong rebound on Wall Street support investor confidence across global financial markets.
Futures indicate that the FTSE 100 will gain around 69 points, or 0.6%, to 10,852.07 at the opening bell, extending Monday’s recovery when Britain’s blue-chip index closed 1% higher at 10,782.87.
The positive outlook follows a strong session on Wall Street, where the Dow Jones Industrial Average surged 2.2%, the S&P 500 climbed 2.4% and the Nasdaq Composite advanced 2.8% as investors returned to equities following last week’s sharp technology-led sell-off.
Brent crude fell to $90.74 a barrel, compared with $94.27 late Monday, as markets responded to further indications that Washington and Tehran could be moving towards a negotiated settlement.
US President Donald Trump suggested that diplomatic efforts were gaining momentum following talks with Qatar’s Prime Minister Sheikh Mohammed bin Abdulrahman Al Thani at the White House.
Qatar has played an important mediating role in efforts to end the conflict, which has disrupted energy markets and contributed to inflationary pressures across major economies.
Trump described the discussions as positive and suggested that Iran’s military capabilities had been substantially weakened, although he maintained that the United States remained prepared to resume military action if necessary.
The prospect of reduced tensions has encouraged investors to reassess the outlook for energy prices, with lower crude costs potentially benefiting airlines, transport companies and other businesses exposed to fuel expenditure.
However, a formal peace agreement has not been announced, and the risk of renewed hostilities remains.
Asian stock markets also advanced on Tuesday, with Japan’s Nikkei 225 climbing 2.9% following substantial volatility in recent sessions.
Hong Kong’s Hang Seng gained 0.5%, while China’s Shanghai Composite edged higher.
Australia’s S&P/ASX 200 rose 1.1%, despite weaker consumer confidence figures following the Reserve Bank of Australia’s latest interest rate increase.
The Westpac-Melbourne Institute consumer sentiment index declined 2.7% to 78.2 points in November, down from 80.4 in October, remaining well below the level associated with consumer optimism.
Meanwhile, China reported a narrowing of its trade surplus to $105.28 billion in October, compared with $133.53 billion in September, providing another indication of changes in international trading conditions.
Technology stocks remain under scrutiny despite Monday’s strong Wall Street recovery, particularly following developments involving Nvidia Chief Executive Jensen Huang.
Nvidia shares closed 4.3% lower on Monday, although they recovered approximately 1% in after-hours trading.
The chipmaker has launched an independent investigation following allegations concerning Huang’s relationship with a woman suspected of links to Chinese intelligence.
Trump subsequently said the FBI was investigating allegations of Chinese espionage, although he did not specify whether Huang himself was under investigation.
Nvidia has previously stated that it has no reason to believe company secrets or US national security information were compromised. The allegations remain under investigation, and no conclusions have been established.
The developments have added uncertainty to the semiconductor sector, which is already facing investor concerns over artificial intelligence valuations and the pace of data centre investment.
In currency markets, sterling strengthened to $1.3448 against the US dollar, compared with $1.3415 at Monday’s London close.
The pound also edged higher against the euro to €1.1978, while the euro advanced to $1.1228 against the dollar.
Gold traded at $4,121.10 an ounce, slightly above Monday’s $4,116.80, as investors continued monitoring geopolitical developments and monetary policy expectations.
Back in the UK, retail sales growth accelerated during October, according to figures from the British Retail Consortium and KPMG.
Cooler weather and government advice encouraging households to stockpile essential supplies helped support spending, although sales of more expensive items remained subdued as consumers delayed purchases ahead of Black Friday.
The figures suggest that consumer demand remains uneven, with households continuing to balance everyday spending against pressure from higher borrowing costs and inflation.
Tuesday’s corporate calendar includes half-year results from Vodafone Group, Oxford Instruments, DCC Energy and Caledonia Investments, alongside full-year figures from Avon Technologies.
Watches of Switzerland Group and Princes Group are also scheduled to issue trading statements.
Investors will additionally assess US small business confidence, ADP employment figures and the latest consumer price inflation data, which could influence expectations for the Federal Reserve’s future interest rate decisions.
The FTSE 100’s anticipated 69-point advance would extend Monday’s recovery and bring the index back towards 10,900, supported by improving international sentiment and falling energy prices.
The principal market drivers will be developments in US-Iran negotiations, the direction of global technology stocks and the latest US inflation figures, as investors assess whether the recent recovery can develop into a more sustained rally.
