17th Jul 2026 06:54
(Alliance News) - Stocks in London are set to open lower on Friday after a sharp sell-off across Asian markets, as escalating US-Iran tensions rattled investor sentiment.
IG says futures indicate the FTSE 100 to open down 43.2 points, 0.4%, at 10,529.04 on Friday. The index of London large-caps closed 0.5% higher at 10,572.24 on Thursday.
Sterling was quoted at USD1.3465 early Friday, lower than USD1.3483 at the London equities close on Thursday. Against the euro, sterling fell to EUR1.1768 from EUR1.3558 a day prior.
The euro traded at USD1.1441 early Friday, lower than USD1.1444 late Thursday. Against the yen, the dollar was quoted at JPY162.39 versus JPY162.43.
The conflict in the Middle East intensified overnight after deadly US strikes hit an airport, a railway station in the port city of Bandar Abbas and two bridges in southern Iran near the Strait of Hormuz, according to Iranian state media.
State broadcaster IRIB said three explosions were heard around Iranshahr airport in southeastern Iran, while Mehr News Agency reported that Bandar Abbas railway junction was also struck, leaving two people injured.
Iran responded by targeting US military infrastructure in Kuwait, saying it had deployed drones against US troop positions and logistical support centres. Bahrain and Qatar also reported attacks early Friday, highlighting the growing regional spillover from the conflict.
Brent oil was quoted at USD84.08 per barrel early Friday, down from USD84.75 late Thursday.
In Asia on Friday, the Nikkei 225 index in Tokyo tumbled 5.3%. In China, the Shanghai Composite fell 3.0%, while the Hang Seng index in Hong Kong dropped 2.4%. The S&P/ASX 200 in Sydney was down 0.7%.
In the US on Thursday, Wall Street ended lower, with the Dow Jones Industrial Average down 0.2%, the S&P 500 down 0.5% and the Nasdaq Composite down 1.5%.
In corporate news, Netflix shares fell 9.0% in after-hours trading after the streaming giant announced it would scale back the disclosure of viewership data while reporting second-quarter revenue that narrowly missed expectations.
The Los Gatos, California-based company said net income rose to USD3.40 billion in the quarter ended June 30 from USD3.13 billion a year earlier. Diluted earnings per share increased to USD0.80 from USD0.72, beating the LSEG consensus of USD0.79.
Revenue climbed to USD12.56 billion from USD11.08 billion but came in just below the USD12.59 billion consensus estimate. Operating margin eased to 33.4% from 34.1% a year earlier.
Meanwhile, China said it "firmly opposes" the UK government's decision to bring British Steel into full public ownership, urging Britain to abide by "international rules".
Chinese-owned Jingye Group, which acquired British Steel in 2020, lost control of the company after the UK government intervened last year. China's Commerce Ministry expressed its "strong dissatisfaction" after the legislation formally took effect on Wednesday, accusing Westminster of "forcibly" taking over the business under the pretext of national security.
Gold was quoted at USD3,988.22 an ounce early Friday, lower than USD4,014.58 on Thursday.
In Friday's corporate calendar, Bridgepoint Group reports half-year results, Burberry issues a trading statement and Taylor Maritime releases full-year results.
In the economic calendar on Friday, the eurozone releases CPI data, while the US publishes building permits, export and import prices, and industrial production figures.
By Eva Castanedo, Alliance News senior economics reporter
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