Stocks in London are expected to open higher on Monday as oil prices continue to climb ahead of a busy week of central bank meetings.
Futures indicate the FTSE 100 will open 49.1 points higher, up 0.5%, at 10,310.25. The index of London blue-chips closed 44.00 points lower, down 0.4%, at 10,261.15 on Friday.
Investors remain focused on developments in the Middle East conflict, particularly the security of the Strait of Hormuz, a key global oil shipping route.
US President Donald Trump warned that NATO could face a “very bad” future if allies fail to assist in reopening the waterway.
“If there’s no response or if it’s a negative response I think it will be very bad for the future of NATO,” Trump said.
He also suggested a planned summit in Beijing with Chinese President Xi Jinping could be delayed as Washington pushes Beijing to help address the situation.
“We’d like to know before,” Trump said, noting that China and several European countries depend more heavily than the US on oil shipments from the Gulf.
Meanwhile, officials from the US and China held trade talks in Paris on Sunday, according to China’s state news agency Xinhua.
Speaking to the Financial Times, Trump said he was seeking minesweepers and personnel capable of “knocking out some bad actors” along the Iranian coastline.
Oil prices reflected the heightened geopolitical tension. Brent crude traded at $104.78 per barrel on Monday morning, up from $101.57 on Friday.
On Wall Street Friday, US markets closed lower. The Dow Jones Industrial Average fell 0.3%, the S&P 500 dropped 0.6%, and the Nasdaq Composite declined 0.9%.
Asian markets were mixed on Monday. Tokyo’s Nikkei 225 slipped 0.2%, China’s Shanghai Composite was down 0.4%, while Hong Kong’s Hang Seng rose 1.5%. Australia’s S&P/ASX 200 eased 0.4%.
In commodities, gold edged lower to $5,022.50 an ounce, down from $5,043.40 late on Friday.
