18th Mar 2026 06:58
(Alliance News) - Stocks in London are set to open higher on Wednesday, following a rise in Asian markets, as investors focus on developments in the Middle East and look ahead to the Federal Reserve rate decision later.
IG says futures indicate the FTSE 100 to open up 16.9 points, 0.2%, at 10,420.50 on Wednesday. The index of London large-caps closed closed up 85.91 points, 0.8% at 10,403.60 on Tuesday.
Sterling was at USD1.3366 on Wednesday morning, up slightly from USD1.3345 at the London equities close on Tuesday. The euro was marginally higher at USD1.1542 from USD1.1531. Against the yen, the dollar was lower at JPY158.72 versus JPY159.01.
Investors continued to watch the conflict in the Middle East ahead of the US Federal Reserve rate decision later in the day.
Pepperstone analyst Michael Brown said: "Markets seem to be becoming increasingly desensitised to incoming geopolitical news flow which, not to take anything away from the significant degree of human suffering that we continue to see, is a relatively common phenomenon when it comes to events such as the present Middle East conflict. Still, kinetic action continues, the Strait of Hormuz remains essentially impassable, and there has still been little-to-no apparent progress towards de-escalation, or any 'off-ramps' being taken.
"On this front, I appreciate that I may sound like a 'broken record', but it remains the assumption that the longer Hormuz remains blocked, the tighter commodity markets will become, hence the higher energy prices are likely to head."
Brown said the Fed is likely to stand pat tonight, maintaining the target range between 3.50% and 3.75%.
"That decision, though, is unlikely to be a unanimous one, with Governors Miran and Waller set to dissent in favour of a 25 basis point cut, in line with their January dissents, and Governor Bowman possibly joining them this time," Brown added.
Brent oil was trading lower at USD101.25 a barrel on Wednesday morning from USD101.95 on Tuesday.
Iraq said it had resumed limited oil exports of 250,000 barrels per day through the Turkish port of Ceyhan after the country's output plunged due to disruptions in the Strait of Hormuz.
The state-owned North Oil Company said it "has begun operating the Sarlo pumping station to resume pumping and exporting Kirkuk oil to the port of Ceyhan with an initial capacity of 250,000 barrels per day".
In the US on Tuesday, Wall Street ended higher, with the Dow Jones Industrial Average up 0.1%, the S&P 500 0.3% higher and the Nasdaq Composite advanced 0.5%.
In Asia on Wednesday, the Nikkei 225 in Tokyo was up 2.9%. In China, the Shanghai Composite was 0.4% higher, while the Hang Seng Index in Hong Kong gained 0.9%. The S&P/ASX 200 in Sydney was 0.3% higher.
Gold was higher at USD5,010.90 an ounce early on Wednesday from USD4,994.57 late Tuesday.
Prudential reported sharply stronger 2025 annual results, with higher profit and improved per‑share performance supported by broad growth across its Asian operations.
The London-based insurer focused on Asia said pretax profit increased 67% to USD4.94 billion in 2025 from USD2.95 billion the previous year.
Prudential declared a second interim dividend of 18.89 US cents per share, 16% higher from 16.29 cents a year earlier, lifting the total dividend by 16% to 26.60 cents from 23.13 cents.
Annual premium equivalent sales was USD6.66 billion, up 7.4% from USD6.20 billion a year prior.
BHP said that Brandon Craig will become chief executive officer, succeeding Mike Henry, who will step down on July 1, 2026.
The Melbourne, Australia-based diversified miner appointed Craig following a formal CEO succession process to find Henry's replacement. Craig serves as BHP's president for the Americas region, having previously led the company's Western Australia iron ore business.
On Wednesday's economic calendar, the US has its interest rate call, as well as producer inflation and factory orders. Canada also has its rate decision, and the eurozone has consumer inflation.
On Wednesday's UK corporate calendar, there are annual results from Softcat, Advanced Medical Solutions, Nexteq and others.
By Michael Hennessey, Alliance News reporter
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