16th Jun 2026 06:57
(Alliance News) - Stocks in London are set to open slightly higher on Tuesday, as optimism over a US-Iran peace deal continues to support risk appetite and push oil prices lower.
IG says futures indicate the FTSE 100 to open 11.1 points lower, 0.1% at 10,419.52 on Tuesday. The index of London large-caps closed down 0.4% at 10,430.62 on Monday.
Ipek Ozkardeskaya, senior analyst at Swissquote, said: "The week started on a positive note, as oil prices fell to levels last seen in the first weeks of the Iranian war, sending global yields lower and equities higher.
"The European Stoxx 600 advanced to a fresh ATH on the back of optimism that the end of the war would narrow the gap between the technology-heavy indices - which have amassed capital flows since the early days of the war - and industries more exposed to higher energy prices."
US President Donald Trump said ships were once again moving through the Strait of Hormuz and that the vital shipping route would be "completely open" by Friday, after Washington and Tehran announced a deal to end the Middle East war.
Iranian media reported on Monday evening that three oil tankers and two cargo vessels had already passed through waters previously affected by a US naval blockade.
The US, Iran and mediator Pakistan said the peace agreement will be formally signed in Switzerland on Friday. However, a senior US administration official said Trump, Vice President JD Vance and Iran's parliamentary speaker Mohammad Bagher Ghalibaf had already signed the text electronically.
Vance said Washington expects Iran will not impose tolls on vessels using the Strait of Hormuz, though the issue remains under discussion as part of the broader agreement. Iranian foreign ministry spokesperson Esmaeil Baqaei said Tehran intends to charge maritime service fees rather than tolls.
Brent oil was trading at USD82.69 a barrel early Tuesday, lower than USD83.18 late Monday.
Further details of the proposed agreement also emerged. A senior Trump administration official said the US has offered Iran access to a USD300 billion reconstruction fund, contingent on Tehran fulfilling its obligations under the framework deal.
The announcement came as US strategic oil stockpiles fell to their lowest level since 1983. The Strategic Petroleum Reserve dropped to 340.3 million barrels last week, down 8.9 million from the previous week, according to the US Department of Energy.
Sterling was quoted at USD1.3399 early Tuesday, lower than USD1.3436 at the London equities close on Monday. Against the euro, sterling fell to EUR1.1567 from EUR1.1580 a day prior.
The euro traded at USD1.1579 early Tuesday, lower than USD1.1604 late Monday. Against the yen, the dollar was quoted at JPY160.24, higher versus JPY160.18.
In the US on Monday, Wall Street ended higher, with the Dow Jones Industrial Average up 0.9%, the S&P 500 up 1.7% and the Nasdaq Composite up 3.1%.
SpaceX shares surged a further 20% after the company said it had raised a record USD85.7 billion. The second day of gains cemented the largest stock market debut in history, lifting the company's valuation above USD2.5 trillion and helping make founder Elon Musk the world's first trillionaire.
In Asia on Tuesday, the Nikkei 225 index in Tokyo was up 0.5%, after the Bank of Japan raised interest rates by 25 basis points to 1.0%, as expected.
The move takes Japanese interest rates to their highest level since 1995. The decision passed by a 7-1 vote, with Toichiro Asada the sole dissenter.
In China, the Shanghai Composite was down 0.3%, while the Hang Seng index in Hong Kong fell 1.6%. The S&P/ASX 200 in Sydney was marginally lower.
Gold was quoted at USD4,319.50 an ounce early Tuesday, lower than USD4,354.54 on Monday.
In Tuesday's corporate calendar, Accsys Technologies, Inspiration Healthcare Group, Tatton Asset Management and TPXimpact Holdings report full-year results, while SThree issues a trading statement.
In the economic calendar on Tuesday, the eurozone and Germany release ZEW economic sentiment surveys.
In the US, building permits, export and import prices and the Redbook index are due. The latest Federal Open Market Committee meeting also begins.
By Eva Castanedo, Alliance News reporter
Comments and questions to [email protected]
Copyright 2026 Alliance News Ltd. All Rights Reserved.