25th Mar 2026 06:52
(Alliance News) - Stocks in London are set to open higher on Wednesday, as optimism over potential de-escalation in the Middle East offsets ongoing volatility in oil prices.
IG says futures indicate the FTSE 100 to open 59.8 points higher, 0.6%, at 10,024.96 on Wednesday. The index of London large-caps closed up 0.7% at 9,965.16 on Tuesday.
US President Donald Trump struck an optimistic tone on the prospects for a negotiated deal with Iran, even as Israel and Tehran continued to exchange strikes and Washington was reported to be deploying additional troops to the region.
Trump, whose rhetoric has shifted in recent days from threatening major attacks to suggesting the conflict is nearing an end, said the US was "in negotiations right now" with Iran, although Tehran has not confirmed formal talks.
He also said Iran's remaining leadership had offered the US a "prize", a remark he linked to energy flows through the Strait of Hormuz, which Iran has largely restricted in response to US and Israeli strikes, driving up global oil prices.
Reports also suggest the US has presented Iran with a 15-point proposal to end the war, including strict limits on its nuclear programme and the reopening of the Strait of Hormuz.
The New York Times, citing unnamed officials, said the plan was delivered via Pakistan, which has offered to mediate. Israel's Channel 12 reported that both sides could agree to a month-long ceasefire during which negotiations would take place.
Brent oil was trading at USD100.31 a barrel early Wednesday, lower than USD103.95 late Tuesday. Prices continue to fluctuate around the USD100 mark, having fallen as low as USD97.07 earlier in the session.
Iran, meanwhile, said "non-hostile vessels" may transit the Strait of Hormuz if they comply with safety and security requirements set by relevant authorities.
In a statement circulated by the International Maritime Organisation, Iran said that vessels linked to the US, Israel or other parties involved in the conflict would not qualify for safe passage.
In London, UK CPI, PPI and RPI data for February are due at 0700 GMT, with consensus expecting CPI to rise 0.4% month-on-month after a 0.5% fall in January.
Sterling was quoted at USD1.3384 early Wednesday, lower than USD1.3394 at the London equities close on Tuesday. Against the euro, sterling fell to EUR1.1544 from EUR1.1551 a day prior.
The euro traded at USD1.1593 early Wednesday, higher than USD1.1591 late Tuesday. Against the yen, the dollar was quoted at JPY158.98, higher versus JPY158.82.
In the US on Tuesday, Wall Street ended lower, with the Dow Jones Industrial Average down 0.2%, the S&P 500 down 0.4% and the Nasdaq Composite down 0.8%.
In Asia on Wednesday, equities were in positive territory. The Nikkei 225 index in Tokyo was up 2.9%. In China, the Shanghai Composite was up 1.1%, while the Hang Seng index in Hong Kong rose 0.3%.
The S&P/ASX 200 in Sydney closed up 1.9%, as Australia's consumer price inflation eased slightly in February. Data from the Australian Bureau of Statistics showed CPI rose 3.7% year-on-year, down from 3.8% in January and below the FXStreet-cited consensus of 3.8%. Trimmed mean inflation, excluding volatile items, held steady at 3.3%.
Gold was quoted at USD4,547.40 an ounce early Wednesday, higher than USD4,421.77 on Tuesday.
In Wednesday's corporate calendar, EnQuest, Franchise Brands, Kenmare Resources, Headlam Group, Luceco, Pharos Energy, TT Electronics and Wag Payment Solutions known as Eurowag all report full year results, while Norman Broadbent reports half year results.
In the economic calendar on Wednesday, UK CPI and PPI, Spain PPI, Germany's Ifo business climate index, and US export and import prices are due.
By Eva Castanedo, Alliance News reporter
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