21st Jul 2026 06:59
(Alliance News) - Stocks in London are set to open lower on Tuesday, ahead of UK unemployment, earnings and public sector finance data.
Elsewhere, the US State Department on Monday issued an alert urging American citizens around the world to "exercise increased caution" over the war with Iran, while Iran's Revolutionary Guards said on Tuesday they hit US military targets including air defence systems in Bahrain and Kuwait.
"The good news is that fresh reports suggest that a senior Iranian official said mediators had proposed a 10-day ceasefire to revive an interim US-Iran agreement, pulling oil slightly lower this morning," Swissquote's Ipek Ozkardeskaya commented. "The bad news is that risks remain tilted to the upside."
IG says futures indicate the FTSE 100 to open down 58.1 points, 0.6%, on Tuesday. The index of London large-caps closed down 75.61 points, 0.7%, at 10,524.76 on Monday.
Sterling was quoted at USD1.3446 early Tuesday, higher than USD1.3418 at the London equities close on Monday. Against the euro, sterling rose to EUR1.1767 from EUR1.1755 a day prior.
In UK political news, Prime Minister Andy Burnham "is already making waves," as IG's Chris Beauchamp put it.
Most recently, the government said on Tuesday it would remove VAT from domestic electricity bills from October 1, adding the measure will be funded by savings from the cancelled digital ID programme.
"Investors find themselves having to try and second guess the first wave of moves from the new PM, and hints about flexibility in the government's fiscal rules are one of the first suggestions of a step change in policy," Beauchamp said.
Meanwhile, in a Truth Social post, US President Donald Trump said: "I had a very good conversation with the new Prime Minister of the UK, Andy Burnham. We discussed many subjects, including the outstanding relationship we have had with the UK. We will be meeting in the not too distant future for topics of mutual interest."
He added: "The Prime Minister has got a big job ahead of him, but he will be able to do it and, of course, the USA will be there to help!"
The euro traded at USD1.1421 early Tuesday, lower than USD1.1441 late Monday. Against the yen, the dollar was quoted lower at JPY162.47 versus JPY162.56.
In the US on Monday, Wall Street ended lower, with the Dow Jones Industrial Average down 0.6%, the S&P 500 down 0.2% and the Nasdaq Composite down 0.6%.
In Asia on Tuesday, the Nikkei 225 index in Tokyo was up 2.4%. In China, the Shanghai Composite was up 0.8%, while the Hang Seng index in Hong Kong was down 0.2%. The S&P/ASX 200 in Sydney was down 0.2%.
Gold was quoted at USD4,065.89 an ounce early Tuesday, higher than USD4,011.08 on Monday.
Brent oil was trading at USD88.40 a barrel early Tuesday, higher than USD88.07 late Monday.
In Tuesday's corporate calendar, Mony releases half-year results.
In the economic calendar on Tuesday, the UK also has grocery market share data, and the eurozone and Germany have their ZEW economic sentiment surveys.
By Emma Curzon, Alliance News reporter
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