9th Jul 2026 06:56
(Alliance News) - Stocks in London are set to open higher on Thursday, despite fresh military escalation in the Middle East, as investors also assess the latest Federal Reserve minutes.
IG says futures indicate the FTSE 100 to open 50.0 points higher, 0.5%, at 10,539.04 on Thursday. The index of London large-caps closed 1.7% lower at 10,489.04 on Wednesday.
Al Carns has ruled himself out of the Labour leadership race, paving the way for Andy Burnham to become UK prime minister.
Though nominations for the leadership contest open on Thursday and prospective candidates technically have time to get the necessary 81 MP backers, the former armed forces minister is thought to be the last viable challenger who was considering whether to put himself forward.
In the absence of any other candidates, former Greater Manchester mayor Burnham will be formally declared Labour leader at a special conference on July 17.
He is expected to become prime minister on July 20.
The US launched fresh strikes on Iran after President Donald Trump vowed to respond "hard" to Iranian attacks on ships in the Strait of Hormuz.
While ordering the retaliation, Trump said he expected the latest military flare-up to be short-lived and left the door open to further negotiations. US Central Command said the strikes were intended to degrade Iran's ability "to threaten freedom of navigation" through the strategic waterway.
Iran's Mehr news agency reported explosions in the port cities of Bandar Abbas, Konarak and Chabahar. Before ordering the strikes, Trump declared the ceasefire with Iran was over, prompting Pakistan, Qatar and the UN to call for de-escalation. Trump also warned US bombing would intensify if Tehran continued attacking vessels in the Strait of Hormuz.
Iran's chief negotiator, Mohammad Bagher Ghalibaf, said the strait would reopen only under "Iranian arrangements".
"The US still has not learned that bullying and breaking its promises no longer come without consequences...Let me be clear: If you strike, you will be struck," he wrote on X.
Iran's Revolutionary Guards said they had retaliated by striking US military bases in Bahrain and Kuwait with missiles and drones, targeting what they described as key infrastructure. They also warned attacks could expand to other US bases across the region if American strikes continued.
Brent oil was trading at USD78.36 a barrel early Thursday, lower than USD80.00 late Wednesday.
Sterling was quoted at USD1.3406 early Thursday, higher than USD1.3358 at the London equities close on Wednesday. Against the euro, sterling fell to EUR1.1721 from EUR1.1722 a day prior.
The euro traded at USD1.1432 early Thursday, higher than USD1.1398 late Wednesday. Against the yen, the dollar was quoted at JPY162.36, lower versus JPY162.68.
In the US on Wednesday, Wall Street ended mixed, with the Dow Jones Industrial Average down 1.1%, the S&P 500 down 0.3% and the Nasdaq Composite up 0.2%.
Attention also remained on monetary policy after minutes from the Federal Reserve's latest meeting showed officials were divided over the future path of interest rates.
The minutes showed all policymakers backed leaving rates unchanged in June. Many participants said the appropriate federal funds rate would be within or slightly below the current range by year-end.
However, many others believed rates should end the year above current levels. A few officials argued that persistently elevated inflation could eventually warrant higher rates, although none supported raising them at the June meeting.
In Asia on Thursday, the Nikkei 225 index in Tokyo was up 1.3%. In China, the Shanghai Composite was 0.1%, while the Hang Seng index in Hong Kong was down 1.0%. The S&P/ASX 200 in Sydney was down 0.4%.
Gold was quoted at USD4,075.60 an ounce early Thursday, higher than USD4,022.15 on Wednesday.
Back in the UK, house prices remained under pressure in June, although the latest survey from the Royal Institution of Chartered Surveyors pointed to tentative signs of stabilisation.
The net balance for house prices improved to minus 33% in June from a revised minus 34% in May. Economists had expected a reading of minus 30%.
In Thursday's corporate calendar, Brooks Macdonald and Hostelworld are due to issue trading updates, while Severn Trent is reporting first-quarter results.
In the economic calendar on Thursday, European Central Bank President Christine Lagarde is due to speak.
Germany releases trade balance data, while Ireland publishes consumer price inflation figures.
In the US, initial jobless claims, existing home sales and EIA natural gas stocks are scheduled.
By Eva Castanedo, Alliance News reporter
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