9th Oct 2026 06:58
(Alliance News) - Stocks in London are set to open higher on Friday as oil prices retreated after US President Donald Trump ruled out further strikes on Iran before next month's midterm elections, easing concerns over an escalation of the Middle East conflict.
IG says futures indicate the FTSE 100 to open 93.0 points higher, 0.9%, at 10,534.60 on Friday. The index of London large-caps closed down 0.2% at 10,441.60 on Thursday.
Brent oil was trading at USD102.72 a barrel early Friday, lower than USD105.57 late Thursday.
Oil prices fell after Trump ruled out attacking Iran before the US midterm elections on November 3, saying Washington was holding "productive discussions" with Tehran.
Trump's comments on his Truth Social platform followed a surge in crude prices on Thursday, driven by media reports suggesting Washington could launch fresh strikes against Iran ahead of the elections.
"I want to make it clear to everybody that, while Iran is in very bad condition, both Economically and Militarily, and while the Blockade will remain in full force and effect...we will not be attacking Iran at any time prior to the Midterm Elections," Trump wrote.
"We are having productive discussions with the Islamic Republic of Iran," he added, without providing further details.
Oil prices have remained elevated amid persistent tensions in the Strait of Hormuz, a vital route for global energy shipments, alongside escalating hostilities between Yemen's Houthis and Saudi Arabia.
Sterling was quoted at USD1.3245 early Friday, higher than USD1.3214 at the London equities close on Thursday. Against the euro, sterling fell to EUR1.1789 from EUR1.1799 a day prior.
The euro traded at USD1.1235 early Friday, higher than USD1.1198 late Thursday. Against the yen, the dollar was quoted at JPY158.08 versus JPY158.26.
In the UK, retail footfall fell faster in September as consumer confidence remained fragile, according to figures from the British Retail Consortium and Sensormatic.
Total UK footfall fell 2.9% year-on-year in September, worsening from a 1.7% decline in August.
High street footfall declined 3.0%, slightly less than August's 3.1% fall, while retail park footfall dropped 1.7%, compared with a 1.0% decline the previous month.
Shopping centre footfall fell 3.5%, a sharper drop than the 0.5% decrease recorded in August.
Across the UK, footfall declined 3.4% in England, 3.0% in Wales, 2.1% in Northern Ireland and 0.7% in Scotland.
Elsewhere, the EU's top trade official said it was crucial for ongoing negotiations with China to deliver "tangible outcomes", as the two sides sought to ease mounting trade tensions.
The talks follow months of friction between the EU and China, raising concerns about a potential escalation into a broader trade dispute.
"Building on three intensive months of engagement, we're working hard to rebalance EU-China trade," EU Trade Commissioner Maros Sefcovic said late Thursday after meeting Chinese Commerce Minister Wang Wentao in Beijing.
"It's crucial that the first phase of our talks under the Trade and Investment Consultations delivers tangible outcomes," Sefcovic said on X.
In the US on Thursday, Wall Street ended mixed, with the Dow Jones Industrial Average up 0.1%, the S&P 500 down 0.5% and the Nasdaq Composite down 1.3%.
In Asia on Friday, Tokyo's Nikkei 225 index was up 0.1%, as data showed Japanese household spending declined in August amid falling real incomes.
According to the Statistics Bureau of Japan, average monthly consumption expenditure among households of two or more people fell 3.1% year-on-year in real terms in August to JPY310,975, or USD1,967.13.
The decline followed a 3.6% fall in July and was smaller than the 3.6% decrease the FXStreet-cited consensus expected.
Average monthly household income fell 0.9% year-on-year in real terms to JPY616,704, easing from a 3.8% decline in July.
In China, the Shanghai Composite was down 0.2%, while the Hang Seng index in Hong Kong rose 1.5%. The S&P/ASX 200 in Sydney was up 0.6%.
Gold was quoted at USD4,199.37 an ounce early Friday, higher than USD4,116.87 on Thursday.
No major events are scheduled in Friday's corporate calendar.
Friday's economic calendar includes Ireland's industrial production figures and Canada's latest unemployment rate.
In the US, the University of Michigan releases its preliminary consumer sentiment index.
By Eva Castanedo, Alliance News senior economics reporter
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