7th Jan 2026 06:50
(Alliance News) - Stocks in London are set to open lower on Wednesday, after the FTSE 100 reached another record close on Tuesday amid ongoing geopolitical uncertainty.
IG says futures indicate the FTSE 100 to open down 0.2% at 10,098.63 on Wednesday. The index of London large-caps closed up 118.16 points, 1.2%, at 10,122.73, a record closing peak.
Sterling was at USD1.3507 on Wednesday morning, up from USD1.3500 at the London equities close on Tuesday. The euro was slightly higher at USD1.1694 from USD1.1689. Against the yen, the dollar was lower at JPY156.34 versus JPY156.67.
"Focus, at large, remains primarily on geopolitical developments, given the ongoing uncertainty surrounding the situation in Venezuela, though there remain few signs of any escalation in tensions on that front for the time being," said Pepperstone analyst Michael Brown.
"That, in fact, is probably the biggest takeaway from the whole thing for the time being, and in turn should allow market participants to move past geopolitics as an issue in relatively short order, re-focusing on what remains a very strong fundamental bull case for risk assets."
The US will receive between 30 million and 50 million barrels of "sanctioned oil" from Venezuela's interim government, President Donald Trump said.
In a post on his Truth Social platform, Trump said the oil would be sold at market prices and that the proceeds would be controlled by him as president to ensure they were used "to benefit the people of Venezuela and the US."
Trump added: "I have asked Energy Secretary Chris Wright to execute this plan, immediately. It will be taken by storage ships, and brought directly to unloading docks in the US."
Meanwhile, Secretary of State Marco Rubio said the US is seeking to buy Greenland and that recent remarks about the island should not be interpreted as signalling a military invasion.
Rubio made the comments during a closed-door briefing with US lawmakers, people familiar with the discussion told the Wall Street Journal.
Elsewhere, Ukraine's Western allies agreed key security guarantees for Kyiv including a US-led monitoring mechanism and a European multinational force that would be deployed after a ceasefire in Russia's war against its neighbour.
French President Emmanuel Macron, UK Prime Minister Keir Starmer and Ukrainian leader Volodymyr Zelensky signed a declaration of intent that foresees the UK, France and other European allies deploying troops on Ukrainian territory.
German Chancellor Friedrich Merz, whose nation has been wary of contributing troops to a multinational force, said German forces could join to monitor a ceasefire, but based in a neighbouring country.
In the US on Tuesday, Wall Street ended higher, with the Dow Jones Industrial Average up 1.0%, while the S&P 500 climbed 0.6% and the Nasdaq Composite ended up 0.6%.
The yield on the 10-year US Treasury was at 4.16% on Wednesday, narrowed from 4.20% on Tuesday. The yield on the 30-year was at 4.85%, slimmed from 4.88%.
In Asia on Wednesday, the Nikkei 225 in Tokyo was down 1.0%. In China, the Shanghai Composite was 0.1% lower, while the Hang Seng Index in Hong Kong lost 1.3%. The S&P/ASX 200 in Sydney rose 0.2%.
Gold was down at USD4,445.20 an ounce early on Wednesday from USD4,485.16 late Tuesday. Brent oil was trading lower at USD59.96 a barrel from USD61.59.
Wednesday's local corporate calendar has a trading statement from retailer Topps Tiles.
The global economic calendar on Wednesday has eurozone inflation figures and a raft of construction PMIs.
In the US, the ISM services PMI will be published, along with ADP unemployment data and the JOLTS job vacancies report.
By Michael Hennessey, Alliance News reporter
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