2nd Sep 2026 06:58
(Alliance News) - Stocks in London are set to open lower on Wednesday as renewed military action between the US and Iran pushed oil prices higher and weighed on sentiment across global markets.
IG says futures indicate the FTSE 100 to open 10,750.88 points lower, 0.4%, at 10,750.88 on Wednesday. The index of London large-caps closed down 0.3% at 10,789.28 on Tuesday.
Brent oil was trading at USD95.35 a barrel early Wednesday, higher than USD92.48 late Tuesday.
US forces struck Iran's Revolutionary Guards in response to what Washington said were attempted attacks on commercial shipping and American troops, with President Donald Trump vowing a forceful response to any retaliation.
Iranian state television reported several explosions in the country's south along the strategic Strait of Hormuz.
Trump said the "large and powerful" strikes were "in retaliation for the Iranians' failed attempt at adding sea mines to the Strait" and for "the Iranians shooting eight missiles, all successfully knocked down, at our Military Base in Jordan."
"If the failed Nation of Iran retaliates for this very justified attack, they will be hit again at a much harder and higher level," he added.
Meanwhile, Iran's Revolutionary Guards said they had carried out a ballistic missile attack on a US base in Jordan, according to Iranian news outlet Tasnim.
The Guards said they launched an "intense ballistic missile attack" on the US Marine Corps' Camp Titin base. Jordan's military said it intercepted 10 ballistic missiles fired from Iran, while three landed in remote areas. No injuries were reported.
Sterling was quoted at USD1.3502 early Wednesday, lower than USD1.3527 at the London equities close on Tuesday. Against the euro, sterling fell to EUR1.1660 from EUR1.1669 a day prior.
The euro traded at USD1.1580 early Wednesday, lower than USD1.1593 late Tuesday. Against the yen, the dollar was quoted at JPY159.93 versus JPY160.07.
In the US on Tuesday, Wall Street ended lower, with the Dow Jones Industrial Average down 0.8%, the S&P 500 down 0.7% and the Nasdaq Composite down 1.0%.
In Asia on Wednesday, the Nikkei 225 index in Tokyo fell 2.7%. In China, the Shanghai Composite lost 0.7%, while the Hang Seng index in Hong Kong was down 0.5%.
In Asia on Wednesday, the Nikkei 225 index in Tokyo fell 2.7%. In China, the Shanghai Composite lost 0.7%, while the Hang Seng index in Hong Kong was down 0.5%.
The S&P/ASX 200 in Sydney fell 0.9%, despite data showing Australia's economy grew faster than expected in the second quarter.
According to the Australian Bureau of Statistics, gross domestic product increased 0.4% in the three months to June 30, accelerating from 0.3% growth in the previous quarter and beating the FXStreet-cited consensus forecast of 0.3%.
On an annual basis, GDP rose 2.1%, slowing from 2.5% in the year to March but exceeding the consensus forecast of 1.8%.
Gold was quoted at USD4,323.94 an ounce early Wednesday, lower than USD4,364.48 on Tuesday.
Meanwhile, G20 finance leaders concluded their two-day meeting with a statement backed by every participant except China, as Washington insisted the presence of a Russian minister had not affected discussions.
US Treasury Secretary Scott Bessent said the broad support for the chair's statement showed "there has been no impact" from Russia's attendance. The statement called for "free, safe, and predictable navigation through the Strait of Hormuz", a section from which China dissented.
In Wednesday's corporate calendar, AEP Plantations, Cairn Homes, Ecora Royalties and TT Electronics report half-year results.
In the economic calendar on Wednesday, Ireland releases unemployment data, the US publishes the ADP employment report for August and factory orders for July and Canada announces its latest interest rate decision.
By Eva Castanedo, Alliance News senior economics reporter
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