1st Apr 2026 06:59
(Alliance News) - Stocks in London are set to open higher on Wednesday, following US President Donald Trump's latest optimistic comments on the Iran war.
"We're not going to be there too much longer. We're obliterating the s–t out of them right now, it's a total obliteration," Trump told the New York Post in an interview published on Tuesday.
He added: "My sole function was to make sure that they don't have a nuclear weapon. They're not going to have a nuclear weapon. When we leave the [Strait of Hormuz] will automatically open."
Meanwhile, Israel struck Iran's capital on Wednesday ahead of Trump's planned address to the American public on the month-long war he said could end within weeks.
The White House said he would give "an important update on Iran" to the nation at 2100 EDT Wednesday, 0200 BST Thursday.
Brent oil was trading at USD103.73 a barrel early Wednesday, lower than USD112.46 late Tuesday.
IG says futures indicate the FTSE 100 to open up 108.6 points, 1.1%, on Wednesday. The index of London large-caps closed up 1.6% at 10,127.96 on Tuesday.
Sterling was quoted at USD1.3262 early Wednesday, higher than USD1.3191 at the London equities close on Tuesday. Against the euro, sterling fell to EUR1.1459 from EUR1.1518 a day prior.
In UK news, Keir Starmer is expected to provide an update on the cost of living amid concerns over the amount energy bills could rise as a result of the Middle East conflict.
The UK prime minister is due to speak at a press conference later on Wednesday morning after he vowed to "protect the British people at home and abroad". In an interview with BBC Breakfast, meanwhile, Chancellor Rachel Reeves said any support the government offers would be based on household income, but refused to commit to immediate support for drivers.
The euro traded at USD1.1575 early Wednesday, higher than USD1.1452 late Tuesday. Against the yen, the dollar was quoted at JPY158.62, lower versus JPY159.53.
In the US on Tuesday, Wall Street ended higher, with the Dow Jones Industrial Average up 2.5%, the S&P 500 up 2.9% and the Nasdaq Composite up 3.8%.
"Hope that the Iran war could end soon fuelled optimism yesterday after Trump announced willingness to pull back, and Iran State News reported a phone call between a EU councillor and Iran President [Masoud Pezeshkian] suggesting 'necessary will to end the war' if guarantees are met," Swissquote's Ipek Ozkardkesaya noted.
In Asia on Wednesday, the Nikkei 225 index in Tokyo was up 5.0%. In China, the Shanghai Composite was up 1.3%, while the Hang Seng index in Hong Kong was up 2.3%. The S&P/ASX 200 in Sydney closed up 2.2%.
Gold was quoted at USD4,696.79 an ounce early Wednesday, higher than USD4,541.34 on Tuesday.
In Wednesday's corporate calendar, there are trading updates from Renew and Topps Tiles.
In the economic calendar on Wednesday, there are manufacturing PMI releases from the eurozone, France, Germany and the UK.
By Emma Curzon, Alliance News reporter
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