FTSE Set for Loss as Oil Prices Surge on MidEast Tensions
The FTSE 100 was set to open lower on Wednesday due to rising oil prices and renewed Middle East tensions. Brent crude surged 3.9% to $87.37 a barrel, while West Texas Intermediate rose 3.9% to $82.31 after Iran launched an attack on US forces. The US Central Command said the US carried out strikes against Iran-aligned terrorists in Iraq.
The US and Saudi Arabia launched joint strikes against Tehran-backed militias in Iraq. Investors will be watching for the latest policy announcement from the US Federal Reserve, which is widely expected to keep the federal funds rate at 3.50% to 3.75%. Rabobank expects the funds rate to remain unchanged but notes that the Committee may discuss hikes over cuts.
A number of companies are set to report earnings, including Standard Chartered and Reckitt Benckiser. Greggs reported a rise in first-half profit and sales, citing growth in the grocery business and strong cost control. Reckitt Benckiser delivered a 'strong' second quarter with broad-based acceleration.