10th Jul 2026 06:58
(Alliance News) - Stocks in London are set to open little changed on Friday, as investors weigh developments in the Middle East alongside signs of weakening UK business confidence.
IG says futures indicate the FTSE 100 to open up 3.1 points, marginally higher, at 10,475.55 on Friday. The index of London large-caps closed 0.2% lower at 10,472.45 on Thursday.
Sterling was quoted at USD1.3424 early Friday, higher than USD1.3397 at the London equities close on Thursday. Against the euro, sterling rose to EUR1.1736 from EUR1.1717 a day prior.
The euro traded at USD1.1437 early Friday, higher than USD1.1432 late Thursday. Against the yen, the dollar was quoted at JPY161.64, down versus JPY162.37.
Traffic through the Strait of Hormuz has fallen sharply since Wednesday, particularly along the UN-backed Omani shipping route, analysts said, after vessels were attacked earlier this week and as the US and Iran exchanged fresh strikes.
Flows through the strategic waterway had climbed to their highest levels since the start of the conflict after the two sides agreed a truce in mid-June, although they remained around one-third of normal peacetime volumes.
That recovery now appears to have stalled. Just six commodity tankers had crossed the strait by 1430 GMT on Thursday, while 21 vessels transited the waterway on Wednesday, according to Kpler data.
Brent oil was quoted at USD76.43 a barrel early Friday, lower than USD77.03 late Thursday.
In the US on Thursday, Wall Street ended higher, with the Dow Jones Industrial Average up 0.3%, the S&P 500 up 0.8% and the Nasdaq Composite up 1.3%.
In Asia on Friday, the Nikkei 225 index in Tokyo was up 1.5%, after Japanese producer prices rose by more than expected in June.
According to the Bank of Japan, the preliminary producer price index increased 0.4% month-on-month, slowing from an upwardly revised 1.1% rise in May but exceeding the FXStreet-cited consensus forecast for a 0.3% increase.
In China, the Shanghai Composite was up 0.2%, while the Hang Seng index in Hong Kong rose 1.3%. The S&P/ASX 200 in Sydney closed up 0.3%.
Back in the UK, veteran politician Andy Burnham moved closer to becoming the country's next prime minister after hundreds of Labour MPs formally nominated him to succeed Keir Starmer as party leader.
Burnham appeared on course to become Labour leader unopposed after the party said 322 of its 403 MPs backed his candidacy on the first day of nominations.
"It is all starting to feel very real," Burnham said in a video posted on social media shortly after nominations opened. The process closes on July 16, with Burnham set to be confirmed as Labour leader the following day if no challenger emerges.
Separately, UK business confidence weakened in June, according to S&P Global, with a growing proportion of companies expecting output to contract over the coming year.
Business expectations fell to their lowest level since February 2025, as firms became increasingly reluctant to expand their workforce or capital investment. Net optimism for private sector output over the next 12 months declined to plus 26% in June from plus 36% in February.
Meanwhile, the decline in UK footfall deteriorated in June as shoppers preferred to stay indoors during the heatwave, data published by the British Retail Consortium and Sensormatic showed.
Total UK footfall was down 3.4% on-year in June, accelerated from a 2.6% fall in May.
Notably, High Street footfall fell by 6.2% in June, after a 1.5% decline in May.
Further, the number of new build developments coming to the UK market is the lowest since early 2017, data published by Rightmove showed.
The average two-year fixed mortgage rate stands at 4.92%, up from 3.53% four years ago, the online property portal said.
The number of new build housing developments coming to the market is at its lowest since January 2017, the company said, with higher mortgage rates continuing to pose a challenge for housing developers and estate agents.
The number of available homes for sale across new and existing homes was 85% higher than four years ago. Rightmove cautioned: "However, there are still not enough affordable homes in the right places."
Gold was quoted at USD4,112.30 an ounce early Friday, lower than USD4,126.64 on Thursday.
In Friday's corporate calendar, Hays and MJ Gleeson issue trading statements, while Schroder Real Estate Investment Trust reports full-year results.
In the economic calendar on Friday, Canada releases unemployment figures. France and Germany publish consumer price inflation data, while Switzerland reports consumer confidence.
By Eva Castanedo, Alliance News senior economics reporter
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