4th Nov 2026 07:00
(Alliance News) - Stocks in London are set to open lower on Wednesday as Democrats seized control of both chambers of the US Congress in a major setback for President Donald Trump, while renewed US strikes on Iran raised concerns over a return to full-scale conflict in the Middle East.
IG says futures indicate the FTSE 100 to open 45.0 points lower, 0.4%, at 10,593.43 on Wednesday. The index of London large-caps closed down 1.1% at 10,638.43 on Tuesday.
Democrats secured control of both the Senate and the House of Representatives in Tuesday's US midterm elections, handing Trump a major political defeat and giving the opposition control of Congress for the remaining two years of his presidency.
The party made gains in several traditionally Republican strongholds, winning Senate races in Texas, Ohio and Kansas, the latter of which had not elected a Democrat to the chamber in almost a century.
In Texas, Democrat James Talarico won the Senate race, while Gina Hinojosa was elected governor, marking two major statewide victories for the party in a state that has been a Republican stronghold for decades.
Trump acknowledged the defeat, saying Democrats "did a good job", while conceding that the war in Iran and the resulting rise in fuel prices had contributed to Republican losses.
Sterling was quoted at USD1.3460 early Wednesday, higher than USD1.3416 at the London equities close on Tuesday. Against the euro, sterling edged down to EUR1.1983 from EUR1.1986 a day prior.
The euro traded at USD1.1233 early Wednesday, higher than USD1.1197 late Tuesday. Against the yen, the dollar was quoted at JPY158.09 versus JPY158.44.
In the US on Tuesday, Wall Street ended mixed, with the Dow Jones Industrial Average down 0.4%, the S&P 500 up 0.4% and the Nasdaq Composite up 0.8%.
In Asia on Wednesday, the Nikkei 225 index in Tokyo was down 1.4%. In China, the Shanghai Composite rose 1.8%, while the Hang Seng index in Hong Kong gained 1.4%. The S&P/ASX 200 in Sydney was down 0.6%.
Gold was quoted at USD4,018.29 an ounce early Wednesday, higher than USD3,933.38 on Tuesday.
Brent oil was trading at USD104.18 a barrel early Wednesday, higher than USD103.24 late Tuesday.
Meanwhile, Trump confirmed that the US had launched strikes on Iran, prompting warnings from Tehran that a renewed conflict would benefit neither side.
The strikes came as Americans prepared to vote in the midterm elections, amid speculation that Washington could resume a broader military campaign against Iran once polling had concluded.
However, Trump played down suggestions that a renewed offensive was imminent, telling the Financial Times that the US appeared to be making progress in its dealings with Tehran.
"We seem to be getting everything we want," Trump said on Tuesday.
"I'm ready, we're ready. We're locked and loaded if we need to go, but there may be no reason for it."
Iran's chief negotiator in talks with Washington, Mohammad Bagher Ghalibaf, warned that the Islamic republic was "ready for battle with its finger on the trigger".
Deputy Foreign Minister Kazem Gharibabadi said Tehran retained the right to "legitimate self-defence" following the US strikes.
In Wednesday's corporate calendar, Marks & Spencer Group and Trainline report half-year results, while Smiths News publishes full-year results. Barratt Redrow, Coca-Cola HBC, JD Wetherspoon and Smith & Nephew issue trading statements.
In the economic calendar on Wednesday, Germany, the eurozone and the UK release composite purchasing managers' index figures, while eurozone consumer price inflation and Irish unemployment data are also due.
In the US, the ADP employment report, trade balance figures and composite purchasing managers' index are scheduled for release.
By Eva Castanedo, Alliance News senior economics reporter
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