24th Jun 2026 06:58
(Alliance News) - Stocks in London are set to open in the red on Wednesday, as Washington and Tehran disagree over the latter's plans for the Strait of Hormuz.
US Secretary of State Marco Rubio said that Washington would not accept Iranian tolls or fees on the Strait of Hormuz, after Tehran and Oman on Tuesday said in a joint statement that they would study the administration of the trade route and the costs to be charged for services, while insisting on their sovereignty over the strait.
Meanwhile in the UK, outgoing UK Prime Minister Keir Starmer has held face-to-face talks with his likely successor, Andy Burnham, as he pledged a "smooth transition" of power.
After PMQ's, Starmer is expected to fly to Berlin to meet German Chancellor Friedrich Merz, French President Emmanuel Macron, Italian Prime Minister Giorgia Meloni and Polish Prime Minister Donald Tusk, with talks expected to focus on continued support for Ukraine, the European role in resolving the Iran conflict and burden-sharing among NATO states.
The talks are two weeks before the NATO summit in Turkey.
IG says futures indicate the FTSE 100 to open down 37.6 points, 0.4%, on Wednesday. The index of London large-caps closed down 9.00 points, 0.1%, at 10,428.85 on Tuesday.
Sterling was quoted at USD1.3194 early Wednesday, lower than USD1.3198 at the London equities close on Tuesday. Against the euro, sterling rose to EUR1.1604 from EUR1.1595 a day prior.
The euro traded at USD1.1365 early Wednesday, lower than USD1.1382 late Tuesday. Against the yen, the dollar was quoted higher at JPY161.59 versus JPY161.54.
In the US on Tuesday, Wall Street ended lower as investors continued selling technology and artificial intelligence stocks, with the Dow Jones Industrial Average down 0.1%, the S&P 500 down 1.4% and the Nasdaq Composite down 2.2%.
In Asia on Wednesday, the Nikkei 225 index in Tokyo was down 0.4%. In China, the Shanghai Composite was up 0.1%, while the Hang Seng index in Hong Kong was up 0.5%. The S&P/ASX 200 in Sydney was up 0.2%.
Gold was quoted at USD4,079.18 an ounce early Wednesday, lower than USD4,134.67 on Tuesday.
Brent oil was trading at USD76.30 a barrel, lower than USD77.10 late Tuesday.
In Wednesday's corporate calendar, Berkeley, Liontrust and ProCook release full-year results.
In the economic calendar, Germany has business climate data and the US has building permits and current accounts.
By Emma Curzon, Alliance News reporter
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