LONDON MARKET EARLY CALL: FTSE 100 seen higher on Iran deal hopes

(Alliance News) - Stocks in London are set to open higher on Tuesday, as hopes for progress in US-Iran negotiations help ease oil prices and improve sentiment.

IG says futures indicate the FTSE 100 to open 34.0 points higher, 0.3%, at 10,372.95 on Tuesday. The index of London large-caps closed 0.7% lower at 10,338.95 on Monday.

US President Donald Trump said a framework agreement with Iran could be reached "over the next week", according to US broadcaster ABC News.

ABC reported that Trump told one of its correspondents in a phone interview that a memorandum of understanding to reopen the Strait of Hormuz and extend the current ceasefire could be completed and agreed within days.

"I still have to get a few more points," Trump said, according to ABC, adding that he had not yet signed off on the deal.

There has been no public confirmation from Iran that an agreement is imminent.

Trump also said Israel and Hezbollah had agreed to halt hostilities. He said he had spoken with Israeli Prime Minister Benjamin Netanyahu and held a "very good call", through unnamed representatives, with the Hezbollah militant group.

According to Trump, Netanyahu agreed to cancel a planned military raid on Beirut, while Hezbollah agreed that "all shooting will stop".

His comments came after Iran's Tasnim news agency reported that Tehran had suspended dialogue with mediators in protest at Israel's expanding offensive in Lebanon against Iran-backed Hezbollah.

Brent oil was trading at USD93.89 a barrel early Tuesday, lower than USD97.22 late Monday.

Sterling was quoted at USD1.3466 early Tuesday, higher than USD1.3447 at the London equities close on Monday. Against the euro, sterling was flat at EUR1.1570.

The euro traded at USD1.1638 early Tuesday, higher than USD1.1624 late Monday. Against the yen, the dollar was quoted at JPY159.73 versus JPY159.64.

In corporate news, Anthropic said it has confidentially submitted a draft S-1 registration statement to the US Securities & Exchange Commission as it moves towards a potential initial public offering.

"This gives us the option to go public after the SEC completes its review," the artificial intelligence company said. It added that the timing of any IPO will depend on market conditions and other factors, while the number of shares and pricing have yet to be determined.

In the US on Monday, Wall Street ended higher, with the Dow Jones Industrial Average up 0.1%, the S&P 500 up 0.3% and the Nasdaq Composite up 0.4%.

Back in the UK, a Treasury minister said it is "an inevitability" that Britain will eventually rejoin the European Union.

Spencer Livermore described a return to the bloc as his "personal view" during a parliamentary exchange, as this month marks 10 years since voters backed Brexit by 52% to 48%.

The comments came during a debate with former Conservative MP Craig Mackinlay, who argued the Labour government was benefiting from several "Brexit dividends", including tariff flexibility.

In Asia on Tuesday, the Nikkei 225 index in Tokyo was down 0.6%. In China, the Shanghai Composite was up 0.5%, while the Hang Seng index in Hong Kong gained 1.9%. The S&P/ASX 200 in Sydney was down 0.1%.

The yield on the US 10-year Treasury narrowed to 4.43% from 4.51%. The yield on the US 30-year Treasury narrowed to 4.95% from 5.01%.

Gold was quoted at USD4,525.98 an ounce early Tuesday, higher than USD4,472.82 on Monday.

In Tuesday's corporate calendar, British American Tobacco issues a trading statement, while GB Group reports full-year results. Gooch & Housego and Paragon Banking Group publish half-year results, while NewRiver REIT and Pennon Group release full-year figures.

In the economic calendar on Tuesday, Switzerland releases trade balance and retail sales data. France publishes its budget balance figures, while Spain reports unemployment data.

Elsewhere, UK money supply figures and eurozone inflation data are due.

By Eva Castanedo, Alliance News reporter

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