23rd Jul 2026 06:59
(Alliance News) - Stocks in London are set to open lower on Thursday, ahead of the European Central Bank's interest rate decision.
The ECB is expected to leave interest rates unchanged, but policymakers will be weighing recently easing inflation against renewed energy price pressures caused by the collapse of the US-Iran ceasefire.
The US-Iran conflict, meanwhile, continues with a 12th night of airstrikes from the former, prompting the UK to withdraw remaining diplomatic staff from Iran.
US Central Command said late on Wednesday that the 12th night of attacks was designed to "further degrade Iran's ability to threaten civilian mariners and commercial vessels transiting regional waters". Announcing the end of the latest wave, they said US forces struck military targets including maritime capabilities, missile and drone storage facilities, coastal surveillance sites and air defence assets.
IG says futures indicate the FTSE 100 to open down 8.4 points, 0.1%, on Thursday. The index of London large-caps closed up 131.06 points, 1.2%, at 10,716.97 on Wednesday.
UK consumer sentiment climbed in July, numbers showed, as political uncertainty eased, though it still remains in negative territory.
Data from the British Retail Consortium-Opinium consumer sentiment monitor showed expectations for the state of the UK economy over the next three months increased to minus 37 points in July from minus 43 points in June.
Business rates will be cut by 20% for pubs, clubs and live music venues across England from April next year, the UK government has announced.
The discount will apply to nearly 32,000 hospitality businesses and is expected to save a typical pub some GBP1,100 annually, but will not be available to the very largest live music venues. It will be funded through a review of reliefs for businesses that "do not make a positive contribution to local communities," such as vape shops, No 10 said.
Sterling was quoted at USD1.3386 early Thursday, higher than USD1.3377 at the London equities close on Wednesday. Against the euro, sterling fell to EUR1.1706 from EUR1.1717 a day prior.
The euro traded at USD1.1430 early Thursday, higher than USD1.1410 late Wednesday. Against the yen, the dollar was quoted slightly lower at JPY163.08 versus JPY163.12.
In the US on Wednesday, Wall Street ended mixed, with the Dow Jones Industrial Average down 6.06 points, the S&P 500 down 0.1% and the Nasdaq Composite up 0.6%.
The US House of Representatives approved a USD95 billion budget framework on Wednesday, with most of the funding earmarked for the Pentagon to fund the war against Iran.
The plan includes USD73 billion for the armed forces and intelligence agencies, notably to fund operations linked to the war against Iran, as well as USD12 billion in aid for farmers affected by President Donald Trump's trade war.
In Asia on Thursday, the Nikkei 225 index in Tokyo was up 1.0%. In China, the Shanghai Composite was up 0.1%, while the Hang Seng index in Hong Kong was up 1.3%. The S&P/ASX 200 in Sydney was up 0.5%.
Gold was quoted at USD4,127.29 an ounce early Thursday, lower than USD4,157.48 on Wednesday.
Brent oil was trading at USD95.96 a barrel early Thursday, higher than USD93.74 late Wednesday.
Iran's Revolutionary Guards said Thursday they stopped three oil tankers from passing through the Strait of Hormuz, as the US and Iran vie for control over the vital waterway.
"Three oil tankers, provoked and tempted by the child-killing American army, were trying to pass through the mine-laid route south of the Strait of Hormuz, but after one of them exploded and caught fire, the other two quickly turned around and turned back," the Guards said in a statement quoted by Iranian state media.
Thursday's corporate calendar includes first-quarter results from Airtel Africa and BT, and half-year results from Centrica.
In the economic calendar on Thursday, the UK has the CBI business optimism index.
By Emma Curzon, Alliance News reporter
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