26th Mar 2026 06:54
(Alliance News) - Stocks in London are set to open slightly lower on Thursday, as oil prices climb back above USD100 and tensions in the Middle East continue to dominate sentiment.
IG says futures indicate the FTSE 100 to open 20.9 points lower, 0.2%, at 10,085.94 on Thursday. The index of London large-caps closed up 1.4% at 10,106.84 on Wednesday.
Iran remained defiant as US President Donald Trump insisted that peace talks were under way, even as Tehran denied any negotiations.
Trump suggested Iranian officials may be reluctant to acknowledge talks for fear of reprisals at home, and reiterated that Iran was being "decimated" in the conflict, now in its fourth week, despite Tehran maintaining a grip on the vital Strait of Hormuz.
Iranian Foreign Minister Abbas Araghchi said the country has no intention of negotiating with the US and will continue its resistance. "At present, our policy is the continuation of resistance," he said on state television, adding: "We do not intend to negotiate – so far, no negotiations have taken place, and I believe our position is completely principled. Speaking of negotiations now is an admission of defeat."
Separately, an Iranian military official told local media that Tehran would target shipping in the Red Sea – a key route for global trade via the Suez Canal – if the US launches a ground invasion.
Oil prices moved higher again after dipping below USD100 on Wednesday, with Brent trading at USD104.43 a barrel early Thursday, higher than USD100.91 late Wednesday.
Michael Brown, senior research strategist at Pepperstone said: "As long as that relentless pace of news flow continues, it is understandable that participants aren't yet prepared to fully ramp up risk levels once more, not least considering that the entire landscape could deteriorate once more on the back of the next 'Truth Social' post.
"It's also understandable why, amid that relentless news flow, conditions remain so volatile, and ultimately why there was little by way of a concrete directional bias to trade throughout [Wednesday], with most assets moving sideways for the most part."
Sterling was quoted at USD1.3354 early Thursday, lower than USD1.3377 at the London equities close on Wednesday. Against the euro, sterling stood at EUR1.1558, unchanged from Wednesday.
The euro traded at USD1.1555 early Thursday, lower than USD1.1572 late Wednesday. Against the yen, the dollar was quoted at JPY159.49, up from JPY159.19.
The UK government said it will prioritise domestic suppliers for contracts linked to national security. In a statement, the Cabinet Office said sectors including shipbuilding, steel, artificial intelligence and energy infrastructure will be treated as strategically important, with new guidance to favour UK firms where necessary to protect national security.
This comes as confidence among UK consumers fell to record lows in March, according to the British Retail Consortium.
Sentiment on the economy dropped sharply to minus 53 from minus 30 in February, while views on personal finances fell to minus 17 from minus 6.
"Consumer confidence collapsed as the Middle East conflict raised the prospect of higher inflation in the months ahead," said BRC Chief Executive Helen Dickinson.
In the US on Wednesday, Wall Street ended higher, with the Dow Jones Industrial Average up 0.7%, the S&P 500 up 0.5% and the Nasdaq Composite up 0.8%.
In Asia on Thursday, equities were in negative territory.
The Nikkei 225 index in Tokyo was down 0.8%, as Japan began releasing another portion of its strategic oil reserves to cushion the impact of rising energy prices. The move follows the release of private-sector reserves earlier this week and a plan to deploy a month's worth of government stockpiles.
In China, the Shanghai Composite was down 1.2%, while the Hang Seng index in Hong Kong fell 2.0%. The S&P/ASX 200 in Sydney closed down 0.1%.
Gold was quoted at USD4,437.66 an ounce early Thursday, lower than USD4,554.59 on Wednesday.
In Europe, German Chancellor Friedrich Merz warned that negotiations on the long-term EU budget are unlikely to be concluded quickly.
Speaking in the Bundestag, he said intensive discussions are ongoing on both the size and structure of the medium-term financial framework, which will run from 2028 to 2034 and is expected to total around EUR2 trillion.
In Thursday's corporate calendar, Amaroq, Hostelworld Group, Mears Group, Next, Oxford BioMedica and Serica Energy all report full year results.
In the economic calendar on Thursday, Germany GfK consumer confidence, Spain GDP and US weekly jobless claims are due.
By Eva Castanedo, Alliance News reporter
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