11th Mar 2026 06:59
(Alliance News) - Stocks in London are set to open lower on Wednesday as markets remain focused on developments in the Middle East, while investors also look ahead to US inflation data later in the day.
IG says futures indicate the FTSE 100 to open 23.5 points lower, 0.2%, at 10,388.74 on Wednesday. The index of London large-caps closed up 1.6% at 10,412.24 on Tuesday.
The US military said it had destroyed 16 Iranian mine-laying vessels "near the Strait of Hormuz," following reports Tehran had begun mining the strategic waterway, which has been virtually closed due to the Middle East conflict.
US forces eliminated multiple Iranian naval vessels, March 10, including 16 minelayers near the Strait of Hormuz," US Central Command said in a post on X that included footage of boats being struck by projectiles and exploding.
Brent oil was trading at USD87.40 a barrel early Wednesday, slightly lower than USD87.92 late Tuesday.
pek Ozkardeskaya, senior analyst at Swissquote, said: "Oil prices reversed their Asian session gains again yesterday, pulling US crude all the way down to the USD76pb mark as the International Energy Agency [IEA] announced that it could release a record amount of strategic reserves.
"The exact amount has not been disclosed yet, but it will reportedly be more than the 182 million barrels released after Russia's invasion of Ukraine in 2022. There is talk that it could be around 300–400 million barrels."
Oil prices have become a key driver of market sentiment, with investors closely monitoring developments in the region.
Meanwhile, confusion briefly emerged over tanker movements in the Strait of Hormuz after a senior US official suggested naval escorts had been deployed. The White House later clarified that no such operation had taken place.
"I can confirm that the US Navy has not escorted a tanker or a vessel at this time, though of course that's an option," White House Press Secretary Karoline Leavitt told a press briefing, after the energy secretary deleted a post claiming otherwise and Iran issued a denial.
Iran remained defiant as fresh explosions were reported in Tehran, insisting it was not seeking a ceasefire even as US President Donald Trump stepped up threats surrounding the strategic Strait of Hormuz. Israel has continued striking targets in Iran and Lebanon, saying it is "not done yet" in its campaign against Tehran, which has ruled out plans for a ceasefire or negotiations.
Sterling was quoted at USD1.3450 early Wednesday, lower than USD1.3458 at the London equities close on Tuesday.
The euro traded at USD1.1636 early Wednesday, lower than USD1.1648 late Tuesday. Against the yen, the dollar was quoted at JPY157.91, up versus JPY157.56.
In the US on Tuesday, Wall Street ended mixed after giving up earlier gains, with the Dow Jones Industrial Average down 0.1%, the S&P 500 down 0.2% and the Nasdaq Composite ended marginally higher.
February inflation figures from the US are also due later in the session. US consumer price index data for February is scheduled for release at 1230 GMT, with consensus expecting inflation to rise 2.4% year-on-year, unchanged from January.
Michael Brown, senior research strategist at Pepperstone, said: "The monthly US CPI figures are usually a standout event risk for markets to navigate, but participants continue to care little about incoming economic data, given the fluid geopolitical backdrop.
Hence, today's inflation report is unlikely to move the needle much, either from a market perspective, or in terms of the Fed policy outlook, given that the data was compiled before the recent energy price shock."
After the closing bell in New York, Oracle caught investors' attention. Shares in the company jumped 8.9% in after-hours trading as the cloud technologies-focused company dismissed worries that artificial intelligence could undermine software companies and addressed concerns about financing pressures, while delivering strong third-quarter results and raising its outlook for financial 2027.
In Asia on Wednesday, stock markets continued to rebound following Tuesday's gains. The Nikkei 225 index in Tokyo was up 1.4%.
Japan also set a new sales target for domestically produced microchips, aiming for an eightfold increase by 2040 compared with 2020 levels. The country currently holds less than 10% of the global chip market, but the government is investing heavily in new factories to boost its position. Data meanwhile showed Japan's producer prices edged lower in February. According to the Bank of Japan, the corporate producer price index fell 0.1% month-on-month in February, reversing a 0.2% rise in January and missing the FXStreet-cited consensus forecast for a 0.1% increase.
In China, the Shanghai Composite was up 0.3%, while the Hang Seng index in Hong Kong rose 0.1%. The S&P/ASX 200 in Sydney closed up 0.6%.
Back in the UK, the business outlook improved in February, according to a survey conducted before the war in Iran began at the end of the month. Data published by S&P Global showed UK companies expect a stronger increase in business activity over the coming year, supported by hopes of improving market confidence and new business opportunities.
The net balance of UK firms expecting an increase in activity over the next 12 months rose to plus 36%, up from plus 33% in October and from 25% a year earlier.
S&P Global said: "Expectations greatly improved among manufacturing firms, which survey members attributed to stronger exports and business expansion plans. Product innovation, AI investment, cost cutting initiatives and defence spending were also cited as tailwinds."
Gold was quoted at USD5,193.40 an ounce early Wednesday, lower than USD5,228.60 on Tuesday.
In Wednesday's corporate calendar, Balfour Beatty, Bodycote, Canal+, Legal & General and PensionBee report full year results, while Supermarket Income REIT publishes half year results.
In the economic calendar on Wednesday, Germany CPI, US CPI and the US monthly budget statement are due.
By Eva Castanedo, Alliance News reporter
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