19th Jun 2026 06:54
(Alliance News) - Stocks in London are set to open lower on Friday, as investors assess the political fallout from Labour's Makerfield by-election result and continued debate over the US-Iran peace agreement.
IG says futures indicate the FTSE 100 to open down 30.4 points, 0.3%, at 10,369.30 on Friday. The index of London large-caps closed down 1.0% at 10,399.70 on Thursday.
Sterling was quoted at USD1.3176 early Friday, lower than USD1.3246 at the London equities close on Thursday. Against the euro, sterling fell to EUR1.1537 from EUR1.1541 a day prior.
The euro traded at USD1.1421 early Friday, lower than USD1.1477 late Thursday. Against the yen, the dollar was quoted at JPY161.40, higher versus JPY160.99.
In UK politics, Labour's Andy Burnham won the Makerfield by-election, paving the way for a potential challenge to Prime Minister Keir Starmer's leadership of the party.
Burnham secured almost 25,000 votes, defeating Reform UK's Robert Kenyon by more than 9,000 votes.
"Everyone knows that politics isn't working," Burnham said in his acceptance speech. "Tonight could, just could, be the turning point."
He also warned Labour that "this is a final chance to change... there will be no second chance".
Burnham has previously said he would seek to enter any Labour leadership contest, although he would need the backing of at least 81 Labour MPs to make the ballot.
Attention in the UK will also turn to economic data due at 0700 BST. Public sector net borrowing is expected at GBP18.5 billion for May, while retail sales are forecast to rise 1.9% on-year after showing no annual growth in April.
Separately, UK consumer confidence remained in negative territory in June. The GfK consumer confidence index was unchanged at minus 23, defying expectations for a decline to minus 24.
In the US on Thursday, Wall Street ended higher, with the Dow Jones Industrial Average up 0.1%, the S&P 500 up 1.1% and the Nasdaq Composite up 1.9%.
US financial markets are closed on Friday for the Juneteenth holiday.
On the geopolitical front, President Donald Trump's agreement with Iran has exposed divisions within the Republican Party, with some hawkish members arguing the deal falls short of the tougher terms previously promised by the White House.
Critics have raised concerns that the agreement could provide Iran with sanctions relief, renewed access to oil markets and the prospect of a USD300 billion reconstruction fund without firm commitments on uranium enrichment, ballistic missiles or support for regional proxy groups.
Trump has defended the agreement as a pragmatic step to reopen one of the world's most important energy routes. He stressed the deal is not yet final and warned the US could resume military strikes if negotiations break down.
Brent oil was quoted at USD79.95 a barrel early Friday, higher than USD77.04 late Thursday.
In Asia on Friday, the Nikkei 225 index in Tokyo was down 0.5%, despite data showing Japanese consumer price inflation edged higher in May.
According to the Statistics Bureau of Japan, consumer prices rose 1.5% year-on-year, accelerating from 1.4% in April. Core inflation excluding food and energy eased slightly to 1.8% from 1.9%, while inflation excluding fresh food matched expectations at 1.4%.
Markets in mainland China and Hong Kong were closed for public holidays marking the Dragon Boat Festival and Tuen Ng Day respectively.
The S&P/ASX 200 in Sydney was down 1.1%.
Gold was quoted at USD4,135.80 an ounce early Friday, lower than USD4,230.61 on Thursday.
In Friday's corporate calendar, Cordiant Digital Infrastructure and Record publish full-year results.
In the economic calendar on Friday, Germany producer prices, UK retail sales and UK public sector net borrowing data are due.
By Eva Castanedo, Alliance News reporter
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