18th Aug 2026 06:50
(Alliance News) - Stocks in London are set to open flat on Tuesday, but European peers lower, as Brent surges past the USD90 a barrel mark again as Middle East tensions remain elevated.
IG says futures indicate the FTSE 100 to open just 1.3 points lower at 10,719.00 on Tuesday. The index of London large-caps closed down 29.81 points, 0.3%, at 10,720.30.
The DAX 40 in Frankfurt is called down 0.5%, and the CAC 40 in Paris 0.4% lower.
Sterling fell to USD1.3537 on Tuesday morning, from USD1.3557 at the time of the London equities close on Monday. Versus the euro, it fell to EUR1.1693 from EUR1.1702.
The euro traded at USD1.1572, fading from USD1.1586. Against the yen, the dollar picked up to JPY159.68 from JPY159.34.
The euro had risen for three days on the spin versus the dollar, hitting a high of USD1.1614 on Monday, its best level in two months.
"Again, oil prices will remain critical for the US dollar's short-term direction, yet there are broader factors supporting the positive euro outlook," Swissquote analyst Ipek Ozkardeskaya commented.
"The softening Fed expectations versus a more cautious ECB – ready to tighten monetary policy further to keep inflation under control, but also the longer-term US debasement trade that weighs on the US dollar and longer-term US Treasuries."
The yield on the 10-year US Treasury widened to 4.74% on Tuesday morning from 4.71% late Monday afternoon. The 30-year yield stretched to 5.32% from 5.29%.
Gold fell to USD4,389.21 an ounce from USD4,423.12. A barrel of Brent surged to USD91.62 from USD89.07.
President Donald Trump threatened Monday to bomb Oman if it "gets in the way" of a US deal with Iran on the Strait of Hormuz and called for Tehran to surrender in a war that has become a growing political burden.
Control of the waterway, which Iran has effectively closed since the conflict began on February 28, remains at the heart of the deadlock between Tehran and Washington.
With whipsawing fuel prices and public opposition to the war weighing on Republicans ahead of November's midterm elections, Trump has faced mounting pressure to end a stalemate that has dragged on for nearly six months.
"If Oman gets in the way, we'll bomb the shit out of them," Trump told Fox News journalist Trey Yingst, referring to ongoing talks between Oman and Iran on control of the strait, which lies between the two countries.
In Tokyo on Tuesday, the Nikkei 225 was down 2.1%. In China, the Shanghai Composite was down 0.3%, while the Hang Seng Index in Hong Kong shed 0.5%. Sydney's S&P/ASX 200 was up 0.2%.
Quintex Intel analyst Stephen Innes commented: "Asia has walked into one of those sessions where the market feels like it is carrying a lit cigarette through a petrol station. Bonds are heavy, Brent is back above USD91/bbl, and the Middle East peace trade is fraying at exactly the wrong moment for a market that had grown comfortable with the idea that softer US data would automatically deliver lower yields, an easier Fed and another free pass for risk.
"Asian sovereign bonds followed Treasuries into the plunge tank, with Australia and New Zealand under pressure and Japanese yields extending their climb, while the US 30-year sits around 5.32%, back in 2007 territory."
BHP Group was up 2.4% in Sydney. It reported stronger annual earnings, lifted by higher prices and record output across key commodities.
The Melbourne, Australia-based diversified miner said attributable profit rose 9.0% to USD9.83 billion in the financial year ended June 30 from USD9.02 billion a year prior.
Revenue climbed 15% to USD58.76 billion from USD51.26 billion, with profit from operations surging 23% to USD23.87 billion from USD19.46 billion.
BHP lifted its total dividend by 56% to 172 US cents per share from 110 cents previously.
Tuesday's global economic calendar has UK jobs and average earnings figures, Worldpanel UK grocery market share data plus US industrial production data.
Tuesday's UK corporate calendar has half year results from Synectics and full year results from Cambridge Nutritional Sciences.
By Eric Cunha, Alliance News news editor
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