Stocks in London are set to open higher on Wednesday, tracking gains in Asian markets as investors keep a close eye on developments in the Middle East and await the latest US interest rate decision.
Futures indicate London’s blue-chip index will rise by around 13 points, building on Tuesday’s gain. The index closed 85.91 points higher, up 0.8%, at 10,403.60 on Tuesday.
In currency markets, sterling strengthened slightly to $1.3366, up from $1.3345 at the previous close. The euro edged up to $1.1542, while the dollar weakened against the yen to ¥158.72.
Geopolitics remain firmly in focus. Analysts note that markets are becoming increasingly accustomed to the ongoing Middle East conflict, even as risks to energy supply persist—particularly with the Strait of Hormuz still effectively blocked.
Energy markets remain central to investor sentiment. Oil prices eased slightly, with Brent crude trading at $101.25 a barrel, down from $101.95 on Tuesday. Meanwhile, Iraq said it had resumed limited exports of 250,000 barrels per day via the Turkish port of Ceyhan, offering some relief to supply concerns.
Overnight, US markets also ended higher. The tech-heavy Nasdaq led the gains with a 0.5% increase, while the S&P 500 added 0.25% and the Dow Jones edged 0.1% higher.
Asian markets were broadly stronger. Tokyo’s Nikkei 225 surged 2.9%, while China’s Shanghai Composite rose 0.4% and Hong Kong’s Hang Seng Index added 0.9%. Australia’s S&P/ASX 200 gained 0.3%.
In commodities, gold moved higher to $5,010.90 an ounce, up from $4,994.57 late Tuesday.
