18th Jun 2026 06:53
(Alliance News) - Stocks in London are set to open lower on Thursday, despite the formal signing of a US-Iran agreement to end the conflict in the Middle East.
IG says futures indicate the FTSE 100 to open 31.2 points lower, 0.3%, at 10,477.41 on Thursday. The index of London large-caps closed up 0.1% at 10,508.61 on Wednesday.
Sterling was quoted at USD1.3307 early Thursday, lower than USD1.3393 at the London equities close on Wednesday. Against the euro, sterling was unchanged at EUR1.1554.
Voters will go to the polls in Makerfield on Thursday in what could be one of the most consequential by-elections in British political history.
Andy Burnham is standing as Labour's candidate in the Greater Manchester constituency with the hope of returning to Parliament to oust Keir Starmer and replace him as prime minister.
Starmer said on Wednesday he was willing to offer the Mayor of Greater Manchester a "big" job in his government, should Burnham win when Thursday's votes are counted.
But allies of Burnham said he was not interested in the offer, insisting "the benefit Andy has is the wind of change for not having been associated with the government's failings".
The euro traded at USD1.1517 early Thursday, lower than USD1.1591 late Wednesday. Against the yen, the dollar was quoted at JPY160.59, up versus JPY160.25.
US President Donald Trump and Iran's president signed a deal intended to end the Middle East war, with Tehran agreeing to dilute its enriched uranium in exchange for large-scale economic relief.
Trump signed the memorandum of understanding during a dinner with French President Emmanuel Macron at the Palace of Versailles following the G7 summit, a US official told AFP.
"Just signed it," Trump told reporters as he emerged from the palace.
Iranian Foreign Ministry spokesperson Esmaeil Baqaei, quoted by state news agency IRNA, said the document "was finalised with the signatures of the presidents".
Pakistan Prime Minister Shehbaz Sharif said the agreement means Tehran will reopen the Strait of Hormuz "instantly" and that the US blockade of Iranian ports will end "immediately".
Under the agreement, Iran committed to dilute its enriched uranium while being allowed to resume oil sales. Washington agreed to waive some sanctions and facilitate the release of a USD300 billion reconstruction fund for Iran, supported by regional nations, once a final agreement is reached on Tehran's nuclear programme.
Oil prices continued to retreat following the breakthrough. Brent oil was quoted at USD77.57 a barrel early Thursday, lower than USD80.10 late Wednesday.
Back in the UK, labour market data are due at 0700 BST. The unemployment rate for the three months to April is expected to remain unchanged at 5.0%.
In the US on Wednesday, Wall Street ended lower, with the Dow Jones Industrial Average down 1.0%, the S&P 500 down 1.2% and the Nasdaq Composite down 1.3%.
The US Federal Reserve left interest rates unchanged and removed language indicating a bias toward future rate cuts in a significantly shorter policy statement than usual.
In the widely expected move, the Federal Open Market Committee maintained the federal funds rate target range at 3.50% to 3.75%. It marked the fourth consecutive hold and the decision was unanimous.
The meeting was also the first chaired by Kevin Warsh, who succeeded Jerome Powell after the latter's final FOMC meeting in April.
In a brief statement, the Fed said it will deliver price stability. In its updated Summary of Economic Projections, officials removed their previous expectation of a rate cut this year and indicated that a rate hike is possible, though not certain.
Of the 18 participants included in the projections, eight saw rates remaining unchanged, nine expected higher rates and one anticipated lower rates. Warsh abstained from the projections.
Warsh also announced four taskforces to review Fed operations, focusing on communications, the balance sheet, the use of data and productivity and employment.
Saying it was an honour to return to the Federal Reserve, Warsh said the FOMC's "north star" is to "get monetary right" in support of its dual mandate.
In Asia on Thursday, the Nikkei 225 index in Tokyo was up 1.8%. In China, the Shanghai Composite was down 0.2%, while the Hang Seng index in Hong Kong fell 2.0%. The S&P/ASX 200 in Sydney was down 0.4%.
Meanwhile, South Korea's benchmark Kospi index topped 9,000 points for the first time on Thursday on the back of a tech-fuelled rally led by chip titans Samsung Electronics Co and SK Hynix Inc.
The Kospi jumped 1.6% to a peak of 9,008.84 in afternoon trade.
Gold was quoted at USD4,317.70 an ounce early Thursday, lower than USD4,356.32 on Wednesday.
In Thursday's corporate calendar, Duke Capital, FirstGroup, Foresight Environmental Infrastructure and XPS Pensions Group report full-year results, while Tesco and Whitbread issue trading statements.
In the economic calendar on Thursday, eurozone current account and construction output data are due. In the UK, unemployment figures and an interest rate decision are scheduled.
In the US, investors will monitor initial jobless claims, the Philadelphia Fed manufacturing index, the Conference Board leading index and EIA natural gas stocks data.
By Eva Castanedo, Alliance News reporter
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