15th Jul 2026 06:53
(Alliance News) - Stocks in London are set to open lower on Wednesday as renewed US military action against Iran lifted oil prices further, while investors digested a fresh batch of Chinese economic data.
IG says futures indicate the FTSE 100 to open 29.2 points lower, 0.3%, at 10,500.19 on Wednesday. The index of London large-caps closed up 0.3% at 10,529.39 on Tuesday.
US President Donald Trump told Fox News he would expand US strikes on Iran next week to target power plants and bridges unless Tehran agreed to negotiate.
"We're going to knock out all their power plants. We're going to knock out all their bridges unless they get to the table and negotiate," Trump said.
Meanwhile, US forces carried out strikes against Iran for a fourth consecutive day and reimposed a naval blockade to prevent ships from sailing to or from the country's ports.
The renewed blockade came into force at 2000 GMT, an hour after the latest strikes began. A senior Iranian official said the move had effectively destroyed a deal reached with Washington to pause hostilities and allow peace talks to proceed.
"There are currently more than 20 US Navy warships and hundreds of military aircraft operating across the Middle East," US Central Command said in a post announcing the resumption of the blockade, adding: "American forces remain vigilant, lethal, and ready."
Brent oil extended its recent gains, trading at USD85.16 a barrel early Wednesday, higher than USD84.00 late Tuesday.
Sterling was quoted at USD1.3405 early Wednesday, higher than USD1.3396 at the London equities close on Tuesday. Against the euro, sterling rose to EUR1.1715 from EUR1.1709 a day prior.
The euro traded at USD1.1438 early Wednesday, higher than USD1.1432 late Tuesday. Against the yen, the dollar was quoted higher at JPY162.19 versus JPY161.96.
In the US on Tuesday, Wall Street ended higher, with the Dow Jones Industrial Average marginally higher, the S&P 500 up 0.4% and the Nasdaq Composite up 0.9%.
In Asia on Wednesday, the Nikkei 225 index in Tokyo was up 1.2%.
In China, the Shanghai Composite was marginally lower, while the Hang Seng index in Hong Kong rose 1.6%, despite data showing that the country's economic growth slowed in the second quarter.
According to the National Bureau of Statistics, gross domestic product increased 4.3% year-on-year in the second quarter, slowing from 5.0% growth in the first quarter and missing the FXStreet-cited consensus forecast of 4.5%.
Quarter-on-quarter, GDP rose 0.9%, matching expectations. Elsewhere, the urban unemployment rate edged down to 5.0% in June from 5.1% in May.
Industrial production accelerated to 5.3% annual growth from 4.5%, beating forecasts, while retail sales rose 1.0% after falling 0.6% in May, comfortably exceeding expectations.
The S&P/ASX 200 in Sydney was up 0.3%.
Back in the UK, Chancellor Rachel Reeves said Britain's relationship with the European Union remained the country's most important international partnership in what is expected to be her final major speech before leaving office.
Reeves said the UK had "no alliance" more important than its ties with the EU and argued Britain should be "much bolder" in strengthening relations with the bloc.
Defending her record after two years at the Treasury, she said the UK economy had "beaten the odds" under her stewardship and urged incoming Prime Minister Andy Burnham to balance "radical change" with economic credibility.
Gold was quoted at USD4,030.00 an ounce early Wednesday, lower than USD4,085.44 on Tuesday.
In early corporate news, Dutch semiconductor equipment supplier ASML forecast full-year 2026 net sales of between EUR43 billion and EUR45 billion.
Second-quarter net income rose 27% to EUR2.92 billion from EUR2.29 billion a year earlier, while total net sales increased 21% to EUR9.33 billion from EUR7.69 billion.
In Wednesday's corporate calendar, it is set to be a busy day for trading updates, with Antofagasta, Barratt Redrow, Ferrexpo, Galliford Try, Rio Tinto and Workspace Group among those reporting.
In the economic calendar on Wednesday, the eurozone releases industrial production data, while Spain publishes consumer price inflation and Ireland reports trade balance figures.
In North America, attention turns to US producer price inflation and the New York Empire State manufacturing index, alongside the Bank of Canada's interest rate decision and Canadian manufacturing sales and capacity utilisation data.
By Eva Castanedo, Alliance News senior economics reporter
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