24th Jun 2025 06:50
(Alliance News) - London's FTSE 100 is called to open higher on Tuesday, as geopolitical risk eases, while oil prices plunged.
IG says futures indicate the FTSE 100 to open 39.7 points higher, 0.5%, at 8,797.74 on Tuesday. The index of London large-caps closed down 16.61 points, 0.2%, at 8,758.04 at the start of the week.
Iran's state broadcaster early on Tuesday confirmed the ceasefire with Israel announced by US President Donald Trump, just as Israel reported incoming rocket fire from Iran.
The enemy had been "forced" into a ceasefire, it said during a live broadcast on state television on Tuesday. Trump said that Iran and Israel had reached a ceasefire agreement.
In response, Iranian Foreign Minister Abbas Araghchi wrote on the platform X that there was at that time no agreement on a ceasefire or the cessation of military operations.
However, if Israel were to end its "illegal aggression" against the Iranian people by 4:00 am Tehran time, "we have no intention to continue our response afterwards," Araghchi wrote.
He later added that military operations had "continued until the last minute, at 4:00 a.m."
A barrel of Brent tumbled to USD69.01 on Tuesday morning, from USD76.39 at the time of the London equities close on Monday. Gold fell to USD3,337.84 an ounce from USD3,387.65.
Iran on Monday said that it attacked American forces stationed at Qatar's Al Udeid Air Base.
The attack came shortly after Qatar closed its airspace as a precaution amid threats from Iran.
In Tokyo, the Nikkei 225 was up 1.1% in afternoon trade, while the S&P/ASX 200 traded 0.9% higher. In China, the Shanghai Composite was up 1.0%, while the Hang Seng Index in Hong Kong shot up 1.8%.
ActivTrades analyst Anderson Alves said Iran's strike was "widely interpreted as symbolic and intended to avoid further escalation".
"Equities could rally with broad sectoral gains led by Technology and Industrials. However, Energy may lag due to a sharp reversal in oil prices. Attention will also turn to recent dovish remarks from Fed officials, signalling a potential rate cut at the July meeting," Alves added.
A key US central bank official called Monday for an interest rate cut as early as July if inflation effects from President Donald Trump's sweeping tariffs remain limited.
The comments by Federal Reserve vice chair for supervision Michelle Bowman came days after Fed Governor Christopher Waller said the bank could lower rates as soon as next month – amid differences among officials on how they should respond to levies.
"Should inflation pressures remain contained, I would support lowering the policy rate as soon as our next meeting in order to bring it closer to its neutral setting and to sustain a healthy labour market," Bowman said in prepared remarks for a conference in Prague.
In its policy meeting this month, the Fed held its benchmark lending rate at a range between 4.25% and 4.50%, keeping it unchanged so far this year. The next meeting is on July 30.
The yield on the 10-year US Treasury widened to 4.34% early Tuesday UK time, from 4.31% at the time of the closing bell on the London Stock Exchange on Monday. The 30-year yield stretched to 4.87% from 4.84%.
Sterling rose to USD1.3566 from USD1.3501, the euro bought USD1.1605, up from USD1.1545 and against the yen, the dollar fell to JPY145.42 from JPY146.37.
In New York on Monday, the Dow Jones Industrial Average rose 0.9%, the S&P 500 added 1.0% and the Nasdaq Composite climbed 0.9%.
Tuesday's global economic calendar has US consumer confidence data at 1500 BST.
Tuesday's local corporate calendar has a trading statement from distribution and outsourcing company Bunzl.
By Eric Cunha, Alliance News news editor
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