4th Mar 2026 06:54
(Alliance News) - Stocks in London are set to open higher on Wednesday, ahead of a busy day for final purchasing managers' index releases, and as conflict in the Middle East continues to escalate.
"Energy facilities, embassies, airports and other civilian targets are being hit from both sides — the US/Israel and Iran," Swissquote's Ipek Ozkardeskaya commented.
PMI releases are due from Germany, the eurozone, the UK and other regions.
IG says futures indicate the FTSE 100 to open up 46.2 points, 0.4%, on Wednesday. The index of London large-caps closed down 2.8% at 10,484.13 on Tuesday.
Sterling was quoted at USD1.3336 early Wednesday, higher than USD1.3305 at the London equities close on Tuesday.
The euro traded at USD1.1614 early Wednesday, higher than USD1.1585 late Tuesday. Against the yen, the dollar was quoted lower at JPY157.43 versus JPY157.80.
In the US on Tuesday, Wall Street ended lower, with the Dow Jones Industrial Average down 0.8%, the S&P 500 down 0.9% and the Nasdaq Composite down 1.0%.
"In the US, yesterday's session started deeply in the red, but sentiment improved as oil prices pulled back from earlier peaks — similar to Monday," Ozkardeskaya said. "The trigger was news that the US would escort and insure tankers through the Strait of Hormuz to partly offset potential energy disruptions. US indices retraced earlier losses to close with smaller declines than their European and Asian peers.
"That said, it doesn't change the broader picture, and selling pressure is unlikely to reverse unless tensions ease rapidly or energy prices fall sustainably."
In Asia on Wednesday, the Nikkei 225 index in Tokyo was down 3.8%. In China, the Shanghai Composite was down 0.8%, while the Hang Seng index in Hong Kong was down 2.8%. The S&P/ASX 200 in Sydney closed down 1.9%.
Brent oil was trading at USD83.65 a barrel early Wednesday, higher than USD83.06 late Tuesday.
Gold was quoted at USD5,151.15 an ounce early Wednesday, higher than USD5,114.94 on Tuesday.
In Wednesday's corporate calendar, there are full-year results from several firms including Vistry, Beazley and Metro Bank.
In the economic calendar on Wednesday, as well as the PMI releases, look out for unemployment and producer inflation data from the eurozone; US and Irish unemployment data; and consumer inflation from Switzerland.
By Emma Curzon, Alliance News reporter
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