8th Jul 2026 06:49
(Alliance News) - Stocks in London are set to open slightly lower on Wednesday as investors digest an escalation in the Middle East, with oil prices climbing after fresh US strikes on Iran.
IG says futures indicate the FTSE 100 to open 12.5 points lower, 0.1%, at 10,653.38 on Wednesday. The index of London large-caps closed 0.1% higher at 10,665.88 on Tuesday.
In the UK, the decline in permanent job postings eased markedly in June, while demand for temporary workers strengthened to its fastest pace in more than three years, according to the latest KPMG and Recruitment & Employment Confederation report compiled by S&P Global.
The permanent placements index rose to 49.1 points in June from 44.1 in May. The permanent salaries index increased to 53.1 from 52.2, marking the fastest pace of pay growth since January, while the temporary wages index climbed to 52.9 from 51.4.
Sterling was quoted at USD1.3355 early Wednesday, lower than USD1.3376 at the London equities close on Tuesday. Against the euro, sterling fell to EUR1.1693 from EUR1.1704 a day prior.
The euro traded at USD1.1416 early Wednesday, lower than USD1.1427 late Tuesday. Against the yen, the dollar was quoted at JPY162.30, higher versus JPY161.91.
US President Donald Trump praised his "chemistry" with Turkish President Recep Tayyip Erdogan as he arrived in Ankara for a Nato summit, while criticising European allies over their response to the Iran conflict.
"I was very disappointed with Nato," Trump said alongside Erdogan at the Turkish presidential palace. "Frankly, if it weren't held in Turkey, where my friend happens to be a very strong leader, a very strong person, it's possible that I wouldn't have attended."
Trump also said Washington would consider selling F-35 fighter jets to Turkey, after removing Ankara from the programme in 2019 following its purchase of a Russian missile defence system.
Meanwhile, the conflict in the Middle East intensified after US forces launched strikes on Iran following attacks on three commercial vessels in the Strait of Hormuz, the US military said.
Iranian state media reported multiple explosions around the strait, including on Qeshm Island, in Sirik and in the port city of Bandar Abbas. Iran's Revolutionary Guards said they had struck dozens of US military facilities in Bahrain and Kuwait in retaliation. The US action came shortly after Washington revoked a temporary sanctions waiver for Iranian oil, increasing pressure on Tehran as negotiations over a final settlement continue.
Oil prices reacted sharply to the escalation, with Brent crude quoted at USD76.51 a barrel early Wednesday, higher than USD73.88 late Tuesday.
In the US on Tuesday, Wall Street ended lower, with the Dow Jones Industrial Average down 0.3%, the S&P 500 down 0.5% and the Nasdaq Composite down 1.2%.
In Asia on Wednesday, the Nikkei 225 index in Tokyo was down 0.8%, despite data showing Japan's current account surplus widened in May.
According to the Ministry of Finance, the surplus rose 20% year-on-year to JPY3.968 trillion, around USD24.43 billion, from JPY3.321 trillion a year earlier. While below the FXStreet-cited consensus forecast of JPY4.121 trillion, it exceeded April's surplus of JPY3.908 trillion. Exports rose 15% on-year while imports increased 8.1%.
In China, the Shanghai Composite was down 0.1%, while the Hang Seng index in Hong Kong was up 2.7%. The S&P/ASX 200 in Sydney was down 0.5%.
Gold was quoted at USD4,126.60 an ounce early Wednesday, lower than USD4,144.14 on Tuesday.
The People's Bank of China bought more gold in June, extending the longest buying streak since at least 2015, Bloomberg reported Tuesday.
Bullion held by China's central bank rose by 480,000 troy ounces to 75.44 million ounces last month. The purchase is the biggest since October 2023, and brings the buying streak to 20 months. Gold fell 12% in June, breaking below USD4,000 an ounce and capping its biggest monthly loss since 2008.
In Wednesday's corporate calendar, Gym Group issues a trading statement, Jet2 reports full-year results, while SysGroup and Zigup release full-year results. Unite Group also issues a trading statement.
In the economic calendar on Wednesday, France releases current account data. In the US, wholesale inventories, EIA crude oil stocks and the minutes from the Federal Open Market Committee's latest meeting are due.
By Eva Castanedo, Alliance News senior economics reporter
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