LONDON MARKET EARLY CALL: FTSE 100 to rise; UK jobless data to come

(Alliance News) - Stocks in London are set to open higher on Tuesday, building on Monday's sharp gain, as the US president hailed a "very positive development" in Iran talks.

IG says futures indicate the FTSE 100 to open 19.5 points higher, 0.2%, at 10,345.25 on Tuesday. The index of London large-caps closed up 128.38 points, 1.3%, at 10,323.75.

US President Donald Trump on Monday touted a "very positive development" in talks with Iran, which convinced him to postpone a planned military attack on the Islamic republic.

Trump said allies in the Middle East told him "they are getting very close to making a deal" that would leave Iran without nuclear weapons.

"It's a very positive development, but we'll see whether or not it amounts to anything," Trump said during a White House event.

A barrel of Brent fell to USD110.21 early Tuesday, from USD110.80 at the time of the London equities on Monday.

The pound rose to USD1.3408 on Tuesday morning, from USD1.3397 late Monday afternoon. Against the euro, it climbed to EUR1.1514 from EUR1.1506. The euro eased to USD1.1638 from USD1.1643.

Tuesday's economic calendar has UK unemployment data at 0700 BST. According to consensus cited by FXStreet, the jobless rate is expected to stay at 4.9% in the three months to March, where it stood in the period to February.

UK Prime Minister Keir Starmer will assemble his new-look Cabinet for the first time on Tuesday after insisting again that he would not "walk away" from Downing Street.

Tuesday's regular Cabinet meeting will be the first since Wes Streeting resigned as health secretary and called on the UK prime minister to quit last week.

It also follows Greater Manchester Mayor Andy Burnham's announcement that he intends to fight the Makerfield by-election.

Burnham has said a vote for him would be a vote to "change Labour", while Starmer has insisted he will not set out a timetable for his departure even if the mayor returns to Parliament.

Against the yen, the buck rose to JPY159.00 from JPY158.84.

Japan's economy grew faster than expected in the first quarter of 2026, Cabinet Office figures showed Tuesday.

According to preliminary estimates, Japan's annualised gross domestic product grew 0.5% quarter-on-quarter, beating expectations of a 0.4% rise, Cabinet Office data showed.

ING analysts commented: "This data, of course, reflects a period before the full effects of global energy shocks. For now, it demonstrates the economy’s resilience and indicates its ability to endure higher interest rates. The previous quarter’s growth was revised from 0.3% to 0.2%.

"We expect slower growth this quarter and next, mostly due to prolonged energy shocks. Domestic demand is likely to grow, but at a slower pace, while inventory and net exports may drag down overall growth. Government subsidies and firm wage growth should support consumption."

In Tokyo, the Nikkei 225 was down 0.5% in late trade. In China, the Shanghai Composite was up 0.2%. The Hang Seng Index in Hong Kong was 0.1% higher. The S&P/ASX 200 in Sydney shot up 1.0%.

In the US on Monday, performance on Wall Street was mixed with the Dow Jones Industrial Average up 0.3%, while the S&P 500 fell 0.1% and the Nasdaq Composite declined 0.5%.

The yield on the US 10-year Treasury was steady at 4.61% early Tuesday, where it stood at the time of the London equities close on Monday. The 30-year was unchanged at 5.14%.

Gold fell to USD4,536.11 an ounce from USD4,541.71.

Tuesday's local corporate calendar has full-year results from business services group DCC, half-year numbers from supplier of specialised technical products and services, Diploma, and electricals retailer Currys.

By Eric Cunha, Alliance News news editor

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