4th Jun 2026 06:54
(Alliance News) - Stocks in London are set to open lower on Thursday, as investors assess developments in Middle East peace talks and a weaker session on Wall Street.
IG says futures indicate the FTSE 100 to open down 46.4 points, 0.5%, at 10,285.90 on Thursday. The index of London large-caps closed 0.4% lower at 10,332.30 on Wednesday.
Sterling was quoted at USD1.3424 early Thursday, lower than USD1.3435 at the London equities close on Wednesday. Against the euro, sterling fell to EUR1.1561 from EUR1.1574 a day prior.
The euro traded at USD1.1607 early Thursday, marginally higher than USD1.1606 late Wednesday. Against the yen, the dollar was quoted at JPY159.91 versus JPY159.96.
Israel and Lebanon agreed to implement a ceasefire, although both sides said it would require a "complete cessation" of fire by Iran-backed Hezbollah, according to a joint statement issued after US-led talks in Washington.
The two sides, which do not maintain formal diplomatic relations, also agreed to establish "pilot zones" in which the Lebanese armed forces would take exclusive control of territory "to the exclusion of all non-state actors".
The statement added that the parties would reconvene for further talks on political and security matters during the week of June 22, with the aim of reaching a comprehensive agreement.
Meanwhile, Iran's foreign minister said there had been "no tangible progress" in negotiations to end the Middle East conflict, as fresh US and Iranian strikes continued to test a fragile ceasefire.
US President Donald Trump struck a more optimistic tone, telling reporters at the White House that talks with Tehran could produce a result "over the weekend".
Trump also said he wants to separate negotiations relating to Lebanon and Hezbollah from those concerning the broader conflict between the US and Iran, although Tehran maintains the two issues are linked.
US Secretary of State Marco Rubio said Iran's stockpile of highly enriched uranium remained central to discussions and expressed hope that the latest round of Israel-Lebanon talks would help establish a security roadmap.
Meanwhile, the US House of Representatives has backed a resolution seeking to halt American military action in Iran – a symbolic move that deals a political blow to Trump as efforts to find a deal with Tehran stagnate.
In the wake of the flare-ups, four lawmakers from Trump's Republican Party joined Democrats on Wednesday to vote 215-208 in favour of the public rebuke.
The resolution was largely symbolic, as the US president can veto the measure if it gains Senate approval.
Brent oil was trading at USD97.00 a barrel early Thursday, lower than USD97.37 late Wednesday.
In corporate news, SpaceX, the rocket and satellite company led by Elon Musk, said it aims to raise around USD75 billion in what would be a record-breaking initial public offering.
According to a regulatory filing, the company plans to sell 555,555,555 shares at an initial price of USD135 each, implying a valuation of USD1.765 trillion.
If completed, the flotation would eclipse the previous IPO fundraising record set by Saudi Aramco, which raised USD25.6 billion in 2019.
In the US on Wednesday, Wall Street ended lower, with the Dow Jones Industrial Average down 1.2%, the S&P 500 down 0.7% and the Nasdaq Composite down 0.9%.
Investor sentiment was also weighed by the Federal Reserve's latest Beige Book, which showed US economic activity increased at a modest pace since April but that expectations for future growth remain subdued.
Economic activity expanded at a slight to moderate pace in 10 of the 12 Federal Reserve districts, while one reported a slight decline and another no change.
Businesses generally reported little change in their outlook for the next six months. Consumer spending remained mixed, with higher-income households proving resilient, while middle-income consumers were said to be "squeezing more life out of every dollar" and lower-income households faced growing financial strain.
Employment conditions showed little to no change across most districts.
In Asia on Thursday, the Nikkei 225 index in Tokyo was down 1.5%. In China, the Shanghai Composite was down 0.7%, while the Hang Seng index in Hong Kong fell 1.6%.
The S&P/ASX 200 in Sydney was down 1.2%, despite data showing Australia's trade position improved in April.
According to the Australian Bureau of Statistics, the country's goods trade balance swung to a surplus of AUD1.79 billion, about USD1.28 billion, from a revised deficit of AUD1.02 billion in March.
Exports rose 7.2% to AUD47.19 billion, while imports increased 0.8% to AUD45.40 billion.
Gold was quoted at USD4,473.40 an ounce early Thursday, higher than USD4,443.05 on Wednesday.
In Europe, the EU unveiled plans aimed at reducing dependence on US and Asian technology providers, including measures to favour European firms in the most sensitive public contracts involving cloud computing and artificial intelligence.
The "tech sovereignty" package forms part of a broader strategy to strengthen domestic manufacturing and narrow the gap with competitors in the US and China.
According to the European Commission, companies outside the bloc currently provide more than 80% of the EU's digital products, services, infrastructure and intellectual property.
The framework would introduce four levels of requirements, ranging from general obligations to store data within Europe to stricter rules covering sensitive sectors such as security and defence.
In Thursday's corporate calendar, Capital Gearing Trust, CMC Markets, Mitie Group and Ondine Biomedical all report full-year results.
In the economic calendar on Thursday, eurozone construction PMI and retail sales figures are due, alongside construction PMI readings from France and Germany.
Ireland releases GDP and unemployment data, while Switzerland reports CPI and unemployment figures. In the UK, new car sales and construction PMI data are scheduled, while the US publishes weekly initial jobless claims.
By Eva Castanedo, Alliance News reporter
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