LONDON MARKET EARLY CALL: Stocks up as US-Iran peace hopes hang on

(Alliance News) - Stocks in London are set to open higher on Thursday, following US President Donald Trump's claim that a deal with Iran is "very possible".

"We've had very good talks over the last 24 hours, and it's very possible that we'll make a deal," Trump told reporters in the Oval Office, although he had earlier said on social media that if "Iran agrees to give what has been agreed to", the war would be over, but if not, the bombing would resume "at a much higher level and intensity".

Meanwhile, UK Prime Minister Keir Starmer is facing his own judgment day at the ballot box as millions head to polling stations to cast their vote in crucial elections.

Devastating results have been predicted for Starmer's Labour Party, with some 1,850 seats expected to be lost in councils across England, according to polling guru Robert Hayward.

Brent oil was trading at USD101.78 a barrel early Thursday, lower than USD102.12 late Wednesday. Gold was quoted at USD4,704.31 an ounce early Thursday, higher than USD4,692.73 on Wednesday.

IG says futures indicate the FTSE 100 to open up 14.3 points, 0.1%, on Thursday. The index of London large-caps closed up 2.2% at 10,438.66 on Wednesday.

The Iran war could cost the UK treasury up to GBP8 billion a year through higher debt interest payments and lower tax revenues, according to a report.

Inflation could peak as high as 5.8% if the conflict in the Middle East ends up in a prolonged stalemate, new modelling by the Institute for Public Policy Research indicates. Meanwhile, the think tank warned that real GDP growth could fall as low as 0.3%.

The IPPR urged the government to act to mitigate the risk of the US and Israel's war with Iran causing long-term damage to the UK economy and public finances.

Sterling was quoted at USD1.3597 early Thursday, lower than USD1.3602 at the London equities close on Wednesday. Against the euro, sterling softened to EUR1.1564 from EUR1.1566 a day prior.

The euro traded at USD1.1752 early Thursday, lower than USD1.1756 late Wednesday. Against the yen, the dollar was quoted higher at JPY156.36 versus JPY156.27.

In the US on Wednesday, Wall Street ended higher, with the Dow Jones Industrial Average up 1.2%, the S&P 500 up 1.5%% and the Nasdaq Composite up 2.0%.

In Asia on Thursday, the Nikkei 225 index in Tokyo was up 6.0%. In China, the Shanghai Composite was up 0.4%, while the Hang Seng index in Hong Kong was up 1.3%. The S&P/ASX 200 in Sydney was up 0.8%.

In Thursday's corporate calendar, there are first-quarter results from InterContinental Hotels, Shell and Lion Finance, and full-year results from JD Sports Fashion.

In the economic calendar on Thursday, there are construction PMI releases from the UK, France, Germany and the wider eurozone.

By Emma Curzon, Alliance News reporter

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