26th Oct 2026 07:02
(Alliance News) - Stocks in London are set to open higher on Monday as investors welcomed narrowing US Treasury yields while assessing developments in the Middle East and the UK's future relationship with the European Union.
IG says futures indicate the FTSE 100 to open 44.0 points, or 0.4%, higher at 10,734.36 on Monday. The index of London large-caps closed down 0.3% at 10,690.36 on Friday.
Sterling was quoted at USD1.3375 early Monday, marginally lower than USD1.3376 at the London equities close on Friday. Against the euro, sterling fell to EUR1.1916 from EUR1.1946 a day prior.
The euro traded at USD1.1219 early Monday, higher than USD1.1196 late Friday. Against the yen, the dollar was quoted at JPY156.95 versus JPY156.85.
In the UK, Prime Minister Andy Burnham has called for an "honest discussion" about restoring freedom of movement between the UK and the European Union as part of a wider reassessment of Britain's relationship with the bloc.
In an interview with the Sunday Times, Burnham said he wanted an evidence-based debate on options including rejoining the EU or entering the single market, both of which would require the restoration of free movement.
He suggested that migration during Britain's EU membership had differed from current patterns, with many European workers coming to the UK temporarily before returning home.
However, Burnham reiterated that he could not envisage recommending that Britain adopt the euro or join the Schengen borderless travel area.
Burnham is due to meet EU leaders at a summit in Brussels on November 20, where he plans to outline possible future arrangements.
Meanwhile, UK Chancellor John Healey is preparing to announce GBP20.4 billion in additional funding for the National Wealth Fund and British Business Bank in Wednesday's government budget, the Financial Times reported. The funding, spread over roughly five years, is expected to create and support 100,000 jobs in sectors including artificial intelligence, defence and green energy by 2035, according to the Treasury.
Brent oil was trading at USD114.84 a barrel early Monday, lower than USD116.34 late Friday.
US Central Command said on Sunday that American forces had helped Gulf countries export more than 1.5 billion barrels of crude oil through the Strait of Hormuz since the summer, despite Iran's blockade of the vital waterway.
"US forces reach the milestone of assisting Gulf partners in exporting more than 1.5 billion barrels of crude oil since summer," Centcom said in a statement on X.
It added that more than 3,000 commercial vessels had successfully transited the strait with US military support over the past six months, with more than 95% of ships navigating the waterway passing through safely.
"Today, primary transit routes in the Strait of Hormuz remain free and clear of Iranian sea mines thanks to incredible efforts by our people," said Centcom chief Admiral Brad Cooper, who was visiting US troops in the region.
Iran has sought to control shipping through the strait since the Middle East war began with US-Israeli strikes on February 28, requiring vessels to obtain permission to transit the waterway, through which around a fifth of global oil exports normally pass.
In the US on Friday, Wall Street ended lower, with the Dow Jones Industrial Average down 1.2%, the S&P 500 down 0.5% and the Nasdaq Composite down 0.2%.
Ukrainian President Volodymyr Zelensky said on Sunday that a trilateral meeting between Kyiv, Washington and Moscow would take place in November in an effort to revive stalled peace talks.
"We are ready to talk. If it's a territorial issue, it must be addressed at a leadership level. Other issues fall within the remit of the technical groups. All this can therefore be discussed in November," Zelensky told Ukrainian television.
His comments followed confirmation from Kremlin spokesman Dmitry Peskov on Friday that a trilateral meeting was planned for November in the United Arab Emirates, amid renewed diplomatic efforts by US President Donald Trump's administration.
Elsewhere, Trump announced that German carmaker Audi, a subsidiary of Volkswagen, plans to invest USD4.2 billion in its first US manufacturing plant, in Macon, Georgia, ahead of the November 3 midterm elections.
Audi confirmed the investment, saying the facility would create around 4,500 jobs and have an annual production capacity of 200,000 vehicles.
While Trump said construction would begin next month, Audi expects work to start in 2027, with production scheduled for the early 2030s.
The investment would establish North America as a third major pillar of Audi's global production network alongside Europe and China.
The announcement comes as Volkswagen faces pressure from US tariffs, Chinese competition and weak European demand, having agreed with unions in September to cut up to 100,000 jobs by 2030.
Ipek Ozkardeskaya, senior analyst at Swissquote, said: "The US 10-year yield is pushing lower again this morning, with gold finding support near USD4,000, suggesting that investors are kicking off the week with visible interest in safe-haven assets."
"But interestingly, major US and European indices point to a slightly positive start, with tech-heavy indices lagging slightly behind their peers," she added.
The yield on the US 10-year Treasury was quoted at 4.97%, narrowing from 5.02%, as prices climbed. The yield on the US 30-year Treasury fell to 5.30% from 5.33%.
Gold was quoted at USD4,008.50 an ounce early Monday, higher than USD3,996.30 on Friday.
In Asia on Monday, the Nikkei 225 index in Tokyo was down 0.8%. In China, the Shanghai Composite was flat, while the Hang Seng index in Hong Kong rose 0.5%. The S&P/ASX 200 in Sydney was up 0.2%.
Meanwhile, Brazilian President Luiz Inacio Lula da Silva secured a fourth term in office on Sunday after defeating right-wing senator Flavio Bolsonaro in a closely contested presidential election.
According to official results, Lula won 51.75% of the vote against 48.25% for Bolsonaro, the son of former president Jair Bolsonaro, overcoming a first-round defeat and a polling deficit ahead of the runoff.
The victory marked a dramatic comeback for the leftist leader, who turns 81 on Tuesday, and bucked a broader shift towards right-wing governments across several Latin American countries.
The election was overshadowed by controversy after Brazil's Supreme Court extended voting by two hours following complaints about public transport disruptions that prevented some voters from reaching polling stations.
Lula had requested the extension after alleging that buses had been withdrawn from service in several cities. Bolsonaro also sought additional voting time in some areas affected by heavy rain, but his campaign criticised the nationwide extension.
Bolsonaro refused to recognise Lula's victory on Sunday, citing the decision to extend polling hours.
In Monday's corporate calendar, Airtel Mobile Commerce reports half-year results, while Quadrise publishes full-year results.
In the economic calendar on Monday, Germany releases its latest ifo business climate index.
By Eva Castanedo, Alliance News reporter
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