10th Jun 2026 06:55
(Alliance News) - Stocks in London are set to open lower on Wednesday, as the US and Iran exchange strikes after an American helicopter was downed, ahead of closely watched US inflation data this afternoon.
IG says futures indicate the FTSE 100 to open down 8.5 points, 0.1%, at 10,218.83 on Wednesday. The index of London large-caps closed down 145.87 points, 1.4%, at 10,227.33 on Tuesday.
Sterling was at USD1.3390 on Wednesday morning, up from USD1.3381 at the London equities close on Tuesday. Against the euro, sterling rose slightly to EUR1.1585 from EUR1.1581.
The euro was a little higher at USD1.1553 from USD1.1551. Against the yen, the dollar edged up to JPY160.34 from JPY160.29.
Iran attacked US bases in Jordan and Bahrain on Wednesday, the latest salvo in tit-for-tat strikes with the US after the downing of a US helicopter over the Strait of Hormuz.
The worst fighting between Washington and Tehran since their April 8 ceasefire has cast further doubt on US President Donald Trump's earlier claim that negotiations were in their "final throes" before reaching an enduring settlement to end the Middle East war.
The fresh Iranian strikes came after the US carried out its own attacks on the Islamic republic in response to Tehran shooting down an American helicopter.
Iranian forces fired "long-range missiles" and "targeted and destroyed four major targets" in Jordan, including F35 fighter nests at an air base and the US command centre in Al-Azraq, the country's Revolutionary Guards said in a statement quoted by state-run IRNA news agency early on Wednesday.
In response, Brent crude was trading higher at USD91.44 a barrel on Wednesday morning from USD90.90 on Tuesday.
The incidents came after the US military said it had "completed" what Trump portrayed as a retaliatory assault on Iran over the downing of an Apache attack helicopter.
US Central Command, which oversees American forces in the Middle East, said on X that it had "struck Iranian air defense, ground control stations, and surveillance radar sites near the Strait of Hormuz with precision munitions from US Air Force and Navy fighter jets".
Later today, US inflation data will be closely watched by investors. Swissquote analyst Ipek Ozkardeskaya said: "A stronger-than-expected set of figures could echo what we saw on Friday following the US jobs data, sending bond yields higher and stock prices lower. The moves could be just as sharp, depending on the data. The market is so crowded with bulls right now that even a small fear could turn into a nightmare.
"Figures in line with expectations, or ideally softer than expected, on the other hand, could help avoid another risk selloff, but will hardly reassure those who watch the news beyond technology and AI regarding what’s to come."
In the US on Tuesday, Wall Street ended mixed, with the Dow Jones Industrial Average up 0.2%, while the S&P 500 fell 0.3% while the Nasdaq Composite lost 1.0%.
In Asia on Wednesday, the Nikkei 225 in Tokyo was down 2.3%. In China, the Shanghai Composite was 0.8% lower, while the Hang Seng Index in Hong Kong fell 1.2%. The S&P/ASX 200 in Sydney rose 0.3%.
Gold was lower at USD4,203.56 an ounce early on Wednesday from USD4,270.69 late Tuesday.
Wednesday's global economic calendar has an interest rate decision in Canada, plus inflation data in the US.
Wednesday's local corporate calendar has half-year results from water supplier Pennon and a trading statement from travel retailer WH Smith.
By Michael Hennessey, Alliance News reporter
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