LONDON MARKET CALL STARTED: FTSE 100 spotted lower; oil slows down in Iran talks

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(Alliance News) – Stocks in London are expected to open lower on Tuesday, as markets weigh in on the US-Iran talks and rising oil prices.

IG says futures show the FTSE 100 will open up 13.6 points, or 0.1%, at 10,307.49 on Tuesday. London’s broad-caps index closed up 0.6% at 10,321.09 on Monday.

US President Donald Trump has met with top security advisers to discuss an Iranian proposal that could see the Strait of Hormuz reopened as broader talks continue, the White House said.

The plan, which would involve both sides removing obstacles ahead of further talks on Tehran’s nuclear program, is “still being discussed”, according to spokeswoman Caroline Leavitt.

In response, Brent oil was quoted at USD102.62 a barrel early Tuesday, down from USD108.92 late Monday.

However, US media reported that Trump remained skeptical of the proposal, with the Wall Street Journal and New York Times saying he had doubts about the integrity of Iran’s leadership. The draft reportedly outlines the reopening of the strait and de-escalation, with nuclear talks to follow later.

Sterling was quoted at USD1.3528 early Tuesday, below the USD1.3549 London shares closed on Monday. Against the euro, sterling rose to EUR1.1550 from EUR1.1543 the previous day.

The euro traded at USD1.1712 early Tuesday, down from USD1.1733 late Monday. Against the yen, the dollar was quoted at JPY159.08, down from JPY159.27.

On the diplomatic side, the UK’s King Charles III met with Trump at the White House, marking the start of a high-level state visit amid transatlantic tensions. The four-day visit coincides with the 250th anniversary of US independence, and the White House says it will “honour the long and special relationship” between the two countries.

Meanwhile, Keir Starmer will lead talks on the economic fallout from the Iran crisis amid renewed calls from many countries to reopen the Strait of Hormuz.

The UK prime minister will convene a meeting of the Middle East Response Committee with ministers and representatives of the Bank of England on Tuesday to discuss the ongoing economic impact of the war.

The ministers are expected to meet in one of the briefing rooms at the Cabinet Office.

In the US on Monday, Wall Street ended up mixed, with the Dow Jones Industrial Average down 0.1%, the S&P 500 up 0.1% and the Nasdaq Composite up 0.2%.

In corporate news, Microsoft and OpenAI have agreed to review their relationship, moving from an exclusive to a non-exclusive arrangement. Microsoft’s Azure will remain the primary cloud provider for OpenAI, with the intellectual property license extended to 2032.

Media reports said that OpenAI will continue to pay Microsoft a 20% revenue share until 2030, although the payments will now be phased out.

In Asia on Tuesday, the Nikkei 225 index in Tokyo fell 0.9%, after the Bank of Japan kept its policy rate steady at 0.75%, in line with expectations. The resolution was passed by a vote of 6-3, with three members seeking an increase of 25 points.

Additionally, Japan’s unemployment rate rose unexpectedly in March. According to the latest labor survey from the Statistics Bureau of Japan, the unemployment rate increased to 2.7% in March from 2.6% in February. The reading exceeded the consensus forecast quoted by FXStreet which had expected no change for last month.

In China, the Shanghai Composite fell 0.2%, while the Hang Seng index in Hong Kong fell 1.0%. The S&P/ASX 200 in Sydney closed up 0.6%.

Back in the UK, retail inflation eased in April, according to the British Retail Consortium.

Prices rose 1.0% on the year, down from 1.2% in March, while monthly prices fell 0.2%, a sharper decline than the 0.1% decline previously seen.

Non-food prices fell by 0.1% year-on-year and 0.6% month-on-month, while food inflation eased to 3.1% from 3.4%. Fresh food inflation eased to 3.9%, while food price inflation eased to 2.1%.

Gold was quoted at USD4,657.76 an ounce early Tuesday, down from USD4,677.74 on Monday.

In the business calendar of Tuesday, it is a busy day of renewal in London, when Anglo American, Barclays and BP report the results of the first quarter, and WPP releases a trading statement, among others.

On Tuesday’s economic calendar, UK grocery market share data from Worldpanel is due.

Elsewhere in Europe, Spain releases unemployment and retail sales figures, while Ireland publishes producer price data.

In the US, the busy slate includes the ADP employment figures, the S&P/Case-Shiller home price index and the house price index, as well as the Conference Board’s consumer confidence and the Richmond Fed’s manufacturing index.

By Eva Castanedo, Alliance News reporter

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