Market open:
The FTSE 100 on Tuesday may be playing catch-up after the long weekend, as large gains were seen in Europe at the start of the week but a final US-Iran ceasefire deal continues to remain out of reach.
European investors reacted with optimism yesterday after Donald Trump said a “memorandum of understanding” in talks to end the US and Israel’s war on Iran “has been largely negotiated”, sending Germany’s DAX and other indices up around 1.8-2%.
Today, FTSE futures are up around 23 points, but investors on spread-better IG are predicting around a 60-point fall.
For Wall Street, which was also closed for a public holiday on Monday, futures are currently pointing to mid-sized rises, with the Dow Jones and S&P 500 called 0.7% higher, and the Nasdaq 100 predicted to jump 0.9%.
The US launched strikes on southern Iran overnight, targeting missile launch sites and boats allegedly laying mines, in what Washington described as “defensive” action during the seven-week ceasefire.
This came despite a senior delegation of Iranian negotiators, including the foreign minister, parliament speaker and central bank chief, travelling to Qatar for fresh talks with the US over frozen financial assets and a possible wider deal.