23rd Jun 2025 06:57
(Alliance News) - The FTSE is called to open lower on Monday, but looks set to avoid a more dramatic fall, after the US's involvement in the Israel-Iran conflict.
IG says futures indicate the FTSE 100 to open 28.8 points lower, 0.3%, at 8,745.85 on Monday. The index of London large-caps closed down 17.15 points, 0.2%, at 8,774.65 on Friday. It lost 0.9% over the course of last week.
President Donald Trump said US air strikes on Sunday had "completely and totally obliterated" Iran's main nuclear enrichment facilities, and warned of more attacks to come if Tehran does not seek peace.
In a televised address to the nation from the White House after the US joined Israel's air campaign against Tehran, Trump called the US attacks a "spectacular military success."
Iran will defend itself by all means necessary, its foreign minister said.
SPI Asset Management analyst Stephen Innes noted oil climbed, but the "panic button" stayed untouched in markets.
A barrel of Brent rose to USD78.03 early Monday, from USD76.49 at the time of the London equities close on Friday. Gold faded to USD3,354.29 an ounce from USD3,366.36, but had traded as high as USD3,373.54 earlier on Monday. Brent also faded from intraday highs, having earlier bought USD79.31.
Innes added: "The initial bid was pure reflex—machines chasing healing risk premium—but the fade was classic crude: traders ran the tape, priced the probabilities, and realized Tehran hadn't closed the gates of Hormuz just yet. The chart looked less like breakout territory and more like a classic range trade — hot air above USD79, with gravity pulling back toward USD77.
"Gold, the perennial panic proxy, didn't flinch—it surged like a paranoid prepper at a flash sale, sniffing last week's highs as geopolitical risk finally gave the yellow metal a real reason to stretch. War drums always grab Gold's attention, and this weekend's B-2 strike was a clarion call, yet that bounce is also fading, with risk stabilizing around the thought that Iran's war-mongering response rhetoric is more bark than bite."
US Secretary of State Marco Rubio urged China to help deter Iran from shutting down the Strait of Hormuz, a crucial trade route through which one-fifth of global oil output passes.
Sterling fell to USD1.3428 early Monday, from USD1.3467 at the time of the London equities close on Friday. The euro declined to USD1.1512 from USD1.1521. Against the yen, the dollar surged to JPY147.23 from JPY145.89.
The yield of the US 10-year Treasury narrowed to 4.39% from 4.40%. The yield on the 30-year was unmoved at 4.91%.
In Tokyo, the Nikkei 225 was down 0.2%, with a weaker yen limiting its losses. In Sydney, the S&P/ASX 200 was down 0.3%. In China, the Shanghai Composite was up 0.5%, while the Hang Seng Index traded up 0.3%.
Monday's global economic calendar has flash composite PMI readings from the eurozone at 0900 BST, the UK at 0930 and the US at 1445.
By Eric Cunha, Alliance News news editor
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