London pre-open: Stocks to dip as Trump says 'clock ticking' on peace talks

18th May 2026 07:33

(Sharecast News) - London stocks were set to dip at the open on Monday as investors mulled the latest developments in the Iran war and the UK political landscape.

The FTSE 100 was called to open around 10 points lower.

Over the weekend, Trump warned Iran that the clock was ticking on peace talks. The US president said on Truth Social on Sunday: "For Iran, the clock is ticking, and they better get moving, fast, or there won't be anything left of them."

He added: "Time is of the essence."

There were also reports over the weekend that the US and Israel are preparing to resume joint attacks on Iran as soon as this week. According to the New York Times, citing two Middle East officials, the US and Israel are engaged in "intense preparations" for a potential resumption of hostilities.

They were reported to have said these were the most significant preparations since the ceasefire brokered by Pakistan in April was established.

On home shores, former health secretary Wes Streeting confirmed over the weekend that he would run for prime minister if a leadership contest is triggered.

Investors will also be reacting to news that Mayor of Greater Manchester Andy Burnham has been cleared to stand in the upcoming Makerfield by-election in a bid to become an MP and challenge Keir Starmer.

Kathleen Brooks, research director at XTB, said: "Risk sentiment remains weak on Monday. The souring of sentiment corresponded with an increase in the oil price, Brent crude is above $111 per barrel, as tensions remain high in the Middle East.

"Stock futures in Europe are pointing to a mildly lower open, while index futures in the US are also in the red. However, there is some underlying hope that the UK bond market may stabilise at the start of the week, after the man of the moment, Andy Burnham's comments about the UK's fiscal rules.

"It turns out that Andy Burnham might be in hock to the bond markets after all. UK yields could stage a recovery later today after Burnham retreated from some of his controversial remarks regarding the UK's Gilt market. In an interview over the weekend, Burnham, the Manchester Mayor who is vying to be the next Prime Minister, committed to sticking to Rachel Reeves' fiscal rules in an effort to reduce bond market jitters."

Brooks added: "Burnham stated clearly that he now supports fiscal rules and agreed that the UK needs a plan to reduce its debt burden. The markets might be sceptical of Burnham, however, his comments tell us two things: 1, the bond market holds significant sway over UK politicians, and 2, if he does manage to replace Starmer, and it is a big if, he could commit to keeping Rachel Reeves in place, and UK fiscal policy may not differ too much from what we already have."

In corporate news, Anglo American said it has agreed to sell its portfolio of steelmaking coal mines in Australia to private UK-registered mining company Dhilmar for up to $3.9bn.

The price comprises an upfront cash consideration of $2.3bn payable at completion and a price-linked earnout of up to $1.6bn.

Anglo said it will use the proceeds to reduce net debt.

Recruitment firm Hays said it has appointed interim chief executive Mark Dearnley to the post on a permanent basis.

Prior to being appointed interim CEO in February, Dearnley was Hays chief digital and technology officer, having joined from Inchcape.

Standard Chartered said it has appointed its head of investor relations as its permanent new chief financial officer with immediate effect.

Manus Costello will take over from interim finance lead Pete Burrill, who has been in the role since February following the abrupt exit of Diego De Giorgi. Standard Chartered also announced the appointment of Tanuj Kapilashrami as chief operating officer.