10th Mar 2026 06:56
(Alliance News) - Stocks in London are set to open higher on Tuesday, as oil prices retreat and global equities rebound after US President Donald Trump suggested the war with Iran could end soon.
IG says futures indicate the FTSE 100 to open 66.1 points higher, 0.6%, at 10,315.62 points on Tuesday. The index of London large-caps closed down 0.3% at 10,249.52 on Monday.
Oil slid and stocks rebounded after comments from Trump and reports that G7 countries could discuss a possible release of strategic oil reserves. Brent oil fell to USD93.76 a barrel early Tuesday, from USD100.02 late Monday.
US President Donald Trump said the war against Iran would be a "short-term excursion," while insisting that the US and Israel "haven't won enough" against Tehran. Trump's comments at a gathering of congressional Republicans at his golf club in Doral, Florida cast further uncertainty over his timeline after he said in a CBS News interview that the conflict was "very complete, pretty much".
Trump also said he will waive some sanctions on oil due to market turmoil following the US and Israeli attacks on Iran. "We're also waiving certain oil-related sanctions to reduce prices," Trump told reporters after talks with Russian President Vladimir Putin while referencing Chinese President Xi Jinping. "We're going to take those sanctions off till this straightens out."
Sterling was quoted at USD1.3456 early Tuesday, higher than USD1.3396 at the London equities close on Monday.
The euro traded at USD1.1560 early Tuesday, lower than USD1.1593 late Monday. Against the yen, the dollar was quoted at JPY157.53, lower versus JPY158.13.
In the US on Monday, Wall Street ended higher, with the Dow Jones Industrial Average up 0.5%, the S&P 500 up 0.8% and the Nasdaq Composite up 1.4%.
In Asia on Tuesday, equities rebounded from very steep losses on Monday. The Nikkei 225 index in Tokyo was up 2.6%. In China, the Shanghai Composite was up 0.5%, while the Hang Seng index in Hong Kong was up 2.0%.
Japan's gross domestic product increased 1.3% on an annualised basis in the fourth quarter of 2025, revised Cabinet Office data showed.
The latest reading marked a stark increase from February's initial estimate of 0.2% GDP growth and also surpassed the FXStreet-cited consensus forecast of a 1.2% rise. GDP grew 0.3% quarter-on-quarter in the final three months of 2025, matching consensus and exceeding the initial estimate of 0.1% growth.
Meanwhile in China, the country's trade surplus sharply beat expectations in the combined January to February period, official data showed. China routinely combines January and February trade figures to offset volatility caused by the moving Lunar New Year holiday.
According to figures from the General Administration of Customs, China's trade balance surged 87% to USD213.62 billion in the two-month period from USD114.14 billion in December.
The S&P/ASX 200 in Sydney closed up 1.1%, supported by improving consumer sentiment. Consumer sentiment in Australia improved in March but remained in pessimistic territory as the escalating conflict in the Middle East sparked concerns, survey data showed. The Westpac–Melbourne Institute consumer sentiment index rose 1.2% to 91.6 points in March from 90.5 in February.
Australian wage growth also eased slightly in the three months to February but held steady on an annual basis, Commonwealth Bank of Australia said. According to the latest CommBank wage insights series, wages in Australia rose 0.7% in the three months to February, slowing from a 0.8% increase in the three months to January.
Back in London, UK retail sales growth last month retreated below 12-month average rates, the British Retail Consortium and KPMG reported, although shoppers provided a "bright spot" in the lead-up to Valentine's Day.
Total sales increased 1.1% annually in the four weeks ended February 28, according to the BRC-KPMG retail sales monitor, unchanged from growth of 1.1% for the same month in 2025, but below the 12-month average growth of 2.3%
However, inflation will be higher than expected throughout 2026 as the conflict in the Middle East pushes up energy prices, the British Chambers of Commerce has warned.
Economists at the business group also warned that UK economic growth will slow and unemployment will continue rising, in a downbeat outlook for the government. The BCC's latest economic report said the geopolitical situation remains "highly uncertain" but could "change the economic outlook considerably".
Gold was quoted at USD5,175.80 an ounce early Tuesday, higher than USD5,104.20 on Monday.
In Tuesday's corporate calendar, Costain Group, Genuit Group, Persimmon, Rotork, Somero Enterprises and Spirax Group all report full year results.
In the economic calendar on Tuesday, Germany trade balance, France trade balance, the US NFIB business optimism index, US ADP employment figures and US existing home sales are due.
By Eva Castanedo, Alliance News reporter
Comments and questions to [email protected]
Copyright 2026 Alliance News Ltd. All Rights Reserved.