(Alliance News) - Stocks in London are set to open lower on Tuesday, as markets weigh fresh developments in US-Iran negotiations and shifting oil prices.
IG says futures indicate the FTSE 100 to open down 13.6 points, 0.1%, at 10,307.49 on Tuesday. The index of London large-caps closed down 0.6% at 10,321.09 on Monday.
US President Donald Trump met with senior security advisers to discuss an Iranian proposal that could see the Strait of Hormuz reopened as broader negotiations continue, the White House said.
The plan, which would involve both sides lifting blockades ahead of further talks on Tehran's nuclear programme, is "being discussed", according to spokesperson Karoline Leavitt.
In response, Brent oil was quoted at USD102.62 a barrel early Tuesday, lower than USD108.92 late Monday.
However, US media reported that Trump remains sceptical of the proposal, with both the Wall Street Journal and the New York Times saying he has doubts about the sincerity of Iran's leadership. The draft reportedly outlines reopening the strait and ending the conflict, with nuclear negotiations to follow at a later stage.
Sterling was quoted at USD1.3528 early Tuesday, lower than USD1.3549 at the London equities close on Monday. Against the euro, sterling rose to EUR1.1550 from EUR1.1543 a day prior.
The euro traded at USD1.1712 early Tuesday, lower than USD1.1733 late Monday. Against the yen, the dollar was quoted at JPY159.08, down versus JPY159.27.
On the diplomatic front, the UK's King Charles III met Trump at the White House, marking the start of a high-profile state visit amid transatlantic tensions. The four-day trip coincides with celebrations of the 250th anniversary of US independence, with the White House saying it would "honor the long-standing and special relationship" between the two countries.
Meanwhile, Keir Starmer will lead talks on the economic fallout of the Iran crisis amid renewed calls from dozens of nations to reopen the Strait of Hormuz.
The UK prime minister will convene the meeting of the Middle East Response Committee with ministers and representatives from the Bank of England on Tuesday to discuss the ongoing economic impact of the war.
Ministers are expected to gather in one of the Cabinet Office briefing rooms.
In the US on Monday, Wall Street ended 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 revise their partnership, shifting from an exclusive to a non-exclusive arrangement. Microsoft's Azure will remain OpenAI's primary cloud provider, with intellectual property licensing extended to 2032.
Media reports said OpenAI will continue paying Microsoft a 20% revenue share through 2030, although payments will now be capped.
In Asia on Tuesday, the Nikkei 225 index in Tokyo was down 0.9%, after the Bank of Japan held its policy rate steady at 0.75%, in line with expectations. The decision passed by a 6-3 vote, with three members calling for a 25 basis point increase.
Additionally, Japan's unemployment rate unexpectedly climbed in March. According to the latest labour force survey from the Statistics Bureau of Japan, the jobless rate grew to 2.7% in March from 2.6% in February. The reading surpassed the FXStreet-cited consensus forecast that had anticipated no change from the previous month.
In China, the Shanghai Composite was down 0.2%, while the Hang Seng index in Hong Kong fell 1.0%. The S&P/ASX 200 in Sydney closed down 0.6%.
Back in the UK, shop price inflation eased in April, according to the British Retail Consortium.
Prices rose 1.0% on-year, slowing from 1.2% in March, while on a monthly basis prices fell 0.2%, a sharper decline than the 0.1% drop seen previously.
Non-food prices fell 0.1% annually and 0.6% on-month, while food inflation eased to 3.1% from 3.4%. Fresh food inflation slowed to 3.9%, while ambient food inflation edged up to 2.1%.
Gold was quoted at USD4,657.76 an ounce early Tuesday, lower than USD4,677.74 on Monday.
In Tuesday's corporate calendar, it is a busy day for updates in London, with Anglo American, Barclays and BP reporting first-quarter results, and WPP issuing a trading statement, among others.
In the economic calendar on Tuesday, 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, a busy slate includes ADP employment figures, the S&P/Case-Shiller home price index and the house price index, alongside Conference Board consumer confidence and the Richmond Fed manufacturing index.
By Eva Castanedo, Alliance News reporter
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