16th Apr 2026 06:52
(Alliance News) - Stocks in London are set to open lower on Thursday, as tensions in the Middle East persist despite ongoing diplomatic efforts and ahead of UK economic data.
IG says futures indicate the FTSE 100 to open 8.9 points lower, 0.1%, at 10,550.68 on Thursday. The index of London large-caps closed down 0.5% at 10,559.58 on Wednesday.
The US has tightened sanctions on Iran's oil industry as Tehran continues to enforce its closure of the Strait of Hormuz during the Middle East conflict.
The latest measures target oil transport infrastructure, with sanctions imposed on more than two dozen individuals, companies and vessels linked to shipping magnate Mohammad Hossein Shamkhani, the Treasury Department said. Shamkhani is the son of senior security official Ali Shamkhani, an adviser to Iran's supreme leader Ali Khamenei, both of whom were killed on February 28 at the start of US-Israeli strikes.
At the same time, Washington said it is discussing a possible second round of peace talks with Iran in Pakistan and expressed optimism about reaching a deal, even as Tehran threatened to shut down Red Sea trade unless the US lifts its naval blockade.
A Pakistani delegation has arrived in Tehran with a fresh message from Washington after President Donald Trump signalled talks could resume this week.
White House Press Secretary Karoline Leavitt said further negotiations would "very likely" take place in Islamabad, adding: "Those discussions are being had" and "we feel good about the prospects of a deal."
Brent oil was trading at USD94.93 a barrel early Thursday, lower than USD95.40 late Wednesday.
Separately, US Treasury Secretary Scott Bessent said Washington does not plan to extend a temporary waiver that allowed the sale of Russian oil already at sea. The Trump administration had introduced the measure in March as a short-term easing of sanctions imposed over Russia's invasion of Ukraine.
Sterling was quoted at USD1.3573 early Thursday, lower than USD1.3577 at the London equities close on Wednesday. Against the euro, sterling fell to EUR1.1495 from EUR1.1502 a day prior.
The euro traded at USD1.1807 early Thursday, higher than USD1.1805 late Wednesday. Against the yen, the dollar was quoted at JPY158.72, lower versus JPY158.97.
Back in the UK, attention turns to economic data due at 0700 BST. UK gross domestic product is expected to rise 0.1% month-on-month in February after being flat in January, while industrial output is forecast to increase 0.3% on-month, following a 0.1% decline in January.
In the US on Wednesday, Wall Street ended mixed, with the Dow Jones Industrial Average down 0.2%, the S&P 500 up 0.8% and the Nasdaq Composite up 1.6%.
In Asia on Thursday, equities were in positive territory, with the Nikkei 225 index in Tokyo up 2.2%.
In China, the Shanghai Composite was up 0.3%, while the Hang Seng index in Hong Kong rose 1.2%, after data showed the economy expanded faster than expected in the first quarter.
According to preliminary figures from the National Bureau of Statistics, China's gross domestic product grew 5.0% year-on-year, accelerating from 4.5% in the prior quarter and beating the FXStreet-cited consensus of 4.8%. On a quarterly basis, GDP rose 1.3%, in line with expectations.
The S&P/ASX 200 in Sydney closed down 0.4%, as Australian labour market and spending data painted a mixed picture. The unemployment rate held steady at 4.3% in March, matching expectations, while employment rose 0.1% and the number of unemployed fell 0.6%.
Meanwhile, Australian household spending increased 2.9% month-on-month in March, rebounding from a 0.5% decline in February, though growth is expected to slow ahead.
Gold was quoted at USD4,833.95 an ounce early Thursday, higher than USD4,802.65 on Wednesday.
In Thursday's corporate calendar, Ashmore Group, Dunelm Group, Hays and Rentokil Initial issue trading statements, while Tesco reports full year results.
In the economic calendar on Thursday, UK GDP, trade balance, industrial production and manufacturing production are due, alongside eurozone CPI, US weekly jobless claims, US industrial production and US EIA natural gas stocks.
By Eva Castanedo, Alliance News reporter
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