FTSE 100 Poised for Modest Recovery Amid Ongoing Geopolitical Concerns

The UK stock market is expected to open higher on August 20, 2026, with the FTSE 100 poised for a modest recovery despite ongoing geopolitical concerns.

The index closed at 10,743.35 points on Wednesday, up 0.14%, ending a six-session losing streak and providing some relief to investors after recent weakness.

UK inflation rose to 2.9% in July from 2.6% in June, in line with market expectations, which could influence the Bank of England's interest-rate decisions.

Elevated oil prices, supported by uncertainty surrounding shipping through the Strait of Hormuz, are likely to continue supporting major energy companies such as BP and Shell.