London stocks are set for a weaker open on Thursday, as geopolitical tensions in the Middle East continue to weigh on sentiment ahead of key economic data releases.
Futures suggest the FTSE 100 will open 45.3 points lower, or 0.4%, at 10,431.16. The index closed down 0.2% at 10,476.46 on Wednesday.
In currency markets, sterling eased to USD1.3491 from USD1.3506 at the previous close, while holding steady against the euro at EUR1.1527. The euro slipped to USD1.1703, and the dollar edged higher against the yen to JPY159.51.
Geopolitical risks remain elevated. Iran said it will not reopen the Strait of Hormuz while the US naval blockade continues, describing it as a breach of the ceasefire. At the same time, Iranian Revolutionary Guard forces reportedly seized two container ships attempting to transit the strait.
Donald Trump is said to view the incident as outside the scope of the ceasefire, as the vessels were not American or Israeli. Despite tensions, reports suggest a second round of US-Iran talks could take place within days.
Oil prices continued to rise, with Brent crude climbing to USD103.10 per barrel from USD101.42, reflecting ongoing supply concerns.
In the UK, consumer sentiment remains deeply negative. Data from the British Retail Consortium showed expectations for the economy at a record low of -53, while views on personal finances fell further to -21.
On Wall Street, equities ended Wednesday higher, with the Dow Jones Industrial Average up 0.7%, the S&P 500 rising 1.1% and the Nasdaq Composite gaining 1.6%.
Asian markets were weaker on Thursday. Japan’s Nikkei 225 fell 0.9%, China’s Shanghai Composite dropped 0.3%, and Hong Kong’s Hang Seng Index declined 0.9%. Australia’s S&P/ASX 200 lost 0.7%.
In corporate news, Tesla Inc. reported stronger-than-expected adjusted earnings for the first quarter, with EPS of USD0.41 beating forecasts, despite revenue coming in slightly below expectations at USD22.39 billion.
Gold prices edged lower to USD4,712.00 per ounce from USD4,734.05.
