Stocks in London are set to open marginally higher on Wednesday, as investors monitor developments in US-Iran talks and await a busy slate of global PMI readings.
Futures indicate the FTSE 100 to open up 2.3 points, marginally higher, at 10,375.81 on Wednesday. The index of London large-caps closed 0.3% higher at 10,373.51 on Tuesday.
Meanwhile, US President Donald Trump said the US and Iran were speaking “continuously”, dismissing reports that Tehran had suspended contact with Washington over Israel’s attacks on Lebanon.
“Fake news reports that the Islamic Republic of Iran, and the USA stopped speaking a few days ago are false and erroneous,” Trump said on his Truth Social platform.
Trump added: “Where they lead, one never knows, but as I told Iran, ‘It’s time, one way or another, for you to make a deal. You’ve been doing this for 47 years, and it cannot be allowed to go on any longer!'”
Brent oil was trading at USD97.10 a barrel early Wednesday, higher than USD94.68 late Tuesday.
Sterling was quoted at USD1.3461 early Wednesday, lower than USD1.3475 at the London equities close on Tuesday. Against the euro, sterling rose marginally to EUR1.1579 from EUR1.1578 a day prior.
The euro traded at USD1.1624 early Wednesday, lower than USD1.1638 late Tuesday. Against the yen, the dollar was quoted at JPY159.89, unchanged from JPY159.89.
In the US on Tuesday, Wall Street ended [higher, with the Dow Jones Industrial Average up 0.5%, the S&P 500 up 0.1% and the Nasdaq Composite marginally higher.
In Asia on Wednesday, the Nikkei 225 index in Tokyo was up 2.9%.
Supporting sentiment, Japan’s cabinet approved a USD19 billion supplementary budget aimed at helping households cope with rising living costs linked to the Iran war.
In China, the Shanghai Composite was up 0.4%, while the Hang Seng index in Hong Kong was down 1.7%.
Data showed Chinese business activity strengthened in May as services growth accelerated despite a moderation in manufacturing activity.
According to S&P Global, the RatingDog China composite purchasing managers’ index rose to 54.0 points in May from 53.1 in April. The services PMI climbed to 54.4 points from 52.6, comfortably ahead of the FXStreet-cited consensus forecast of 52.3.
Meanwhile, the US Trade Representative proposed new tariffs on 60 economies for alleged failures to combat forced labour, as the Trump administration seeks to rebuild its trade agenda following recent legal setbacks. The proposed duties range from 10% to 12.5% and will undergo a public consultation process before any final decision is taken.
The S&P/ASX 200 in Sydney was up 1.0%.
Australian economic growth slowed in the first quarter, according to the Australian Bureau of Statistics.
Gold was quoted at USD4,462.20 an ounce early Wednesday, lower than USD4,503.10 on Tuesday.
