27th Mar 2026 06:51
(Alliance News) - Stocks in London are set to open higher on Friday, as easing tensions in the Middle East after fresh US-Iran developments offer some relief to markets.
IG says futures indicate the FTSE 100 to open 48.8 points higher, 0.5%, at 10,020.97 on Friday. The index of London large-caps closed down 1.3% at 9,972.17 on Thursday.
US President Donald Trump said talks with Tehran are "going very well", as he extended a pause on plans to target Iranian energy sites.
After initially announcing a five-day pause on Monday, Trump said in a post on Truth Social: "As per Iranian Government request... I am pausing the period of Energy Plant destruction by 10 Days to Monday, April 6, 2026, at 8 PM."
Iran has not formally responded to the extension, but earlier said it was awaiting a US response to its conditions for a ceasefire.
At a cabinet meeting, special envoy Steve Witkoff confirmed the US had sent Iran a 15-point peace plan, while Trump warned the US would be Iran's "worst nightmare" if it did not agree to a deal.
Brent oil was trading at USD107.76 a barrel early Friday, lower than USD108.80 late Thursday.
Sterling was quoted at USD1.3343 early Friday, higher than USD1.3338 at the London equities close on Thursday. Against the euro, sterling stood at EUR1.1561, unchanged from a day prior.
The euro traded at USD1.1539 early Friday, lower than USD1.1563 late Thursday. Against the yen, the dollar was quoted at JPY159.61 versus JPY159.65.
In the UK, retail sales data for February are due at 0700 GMT, with consensus expecting a 0.8% month-on-month decline and a 2.1% year-on-year increase.
UK consumer confidence weakened in March, according to GfK, as concerns grew about the inflationary impact of the Middle East conflict.
The overall index fell to minus 21 from minus 19 in February. While the measure of personal finances over the past year held steady at minus seven, expectations for the next 12 months slipped to plus one from plus two.
Views on the broader economy over the past year improved slightly to minus 43 from minus 44, but expectations for the year ahead deteriorated to minus 37 from minus 31.
In the US on Thursday, Wall Street ended lower, with the Dow Jones Industrial Average down 1.0%, the S&P 500 down 1.7% and the Nasdaq Composite down 2.4%.
In Asia on Friday, the Nikkei 225 index in Tokyo was down 0.4%. In China, the Shanghai Composite was up 0.6%, while the Hang Seng index in Hong Kong was up 0.2%. The S&P/ASX 200 in Sydney closed up 0.7%.
US Secretary of State Marco Rubio said it is in the "interest" of all G7 nations to push for the reopening of the Strait of Hormuz, which remains blocked by Iran.
Speaking ahead of a G7 foreign ministers meeting near Paris, Rubio said: "It's in their interest to help." On his first overseas trip since US and Israeli airstrikes on Iran began on February 28, Rubio said there had been "progress" in talks, though he declined to give a timeline.
"There are intermediary countries that are passing messages, and progress has been made," he said, describing negotiations as an "ongoing process."
In the UK, FTSE Russell said it will lower the minimum free float requirement for non-UK incorporated companies from 25% to 10%, aligning them with UK-incorporated firms.
The change, effective from the June 2026 index review, aims to make UK indices more representative of the underlying economy.
The London Stock Exchange Group-owned index provider said the move brings requirements in line with the London Stock Exchange Main Market.
"We regularly review our index methodologies to ensure they continue to reflect the markets they are designed to track," said FTSE Russell Global Head of Policy David Sol.
Gold was quoted at USD4,466.79 an ounce early Friday, higher than USD4,383.70 on Thursday.
In Friday's corporate calendar, there are no UK company events scheduled for 0700 GMT.
In the economic calendar on Friday, UK retail sales are due at 0700 GMT. Later in the day, Spain consumer prices, Ireland retail sales and Canada budget balance data are scheduled.
By Eva Castanedo, Alliance News reporter
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