London pre-open: Stocks seen higher as investors eye US-Iran talks

(Sharecast News) - London stocks were set to gain at the open on Friday as investors continued to eye developments in the Middle East amid a fragile ceasefire and ahead of US-Iran talks this weekend in Islamabad.

The FTSE 100 was called to open around 20 points higher.

Danske Bank said: "Peace talks between the US and Iran, mediated by the Pakistani prime minister, are scheduled to begin on Saturday, but tensions remain high due to disagreements over the agenda.

"Iran insists on its ten-point plan, which White House Press Secretary Karoline Leavitt claims President Trump 'literally threw in the garbage'. Further complicating the situation are disputes over whether the ceasefire terms should extend to Lebanon, after Israel's deadly attacks there on Wednesday."

On Thursday, Benjamin Netanyahu told his cabinet to start direct talks with Lebanon "as soon as possible".

The Israeli prime minister said in a statement that the talks "will focus on disarming Hezbollah and establishing peaceful relations" between Israel and Lebanon. The announcement came a day after Israel launched its worst attack on Lebanon since the start of the conflict.

Investors will also be looking out for the US consumer price index for March later in the day.

On home shores, industry data showed that retail footfall ticked higher in March, boosted by the early timing of Easter.

According to the latest BRC-Sensormatic footfall monitor, total UK footfall rose by 2.4% in the five weeks from 1 March to 4 April. Easter Sunday fell on 5 April this year, whereas 2025's later timing meant the long weekend was included in BRC-Sensormatic's April reporting period.

The largest increase was seen at shopping centres, where footfall rose 2.6% year-on-year. Retail parks saw a 2.5% jump, while on high streets, footfall increased by 2%.

Andy Sumpter, retail consultant, EMEA, at Sensormatic, said: "March brought a welcome return to growth for UK retail footfall, the first positive month in nearly a year.

"On the surface, this marks an encouraging shift in momentum. However, the improvement needs to be viewed in context. Much of March's uplift was driven by an Easter boost; last year's comparison was also relatively weak due to the later timing of Easter, amplifying the apparent growth.

"Without the final week's Easter bump, March would likely have remained in negative territory."

Helen Dickinson, chief executive of the British Retail Consortium, said: "With Easter and the school holidays falling earlier this year, retailers were expecting a stronger boost to footfall than March delivered. Warmer weather might help sustain footfall in the months ahead, but without an Easter uplift in April, momentum is far from guaranteed."

She added that conflict in the Middle East was weighing "heavily" on both retailer and consumer confidence, and warned that further pressure on the cost of living would likely hit footfall.

In corporate news, student accommodation provider Unite Group held annual guidance and said 74% of beds for the new academic year had been reserved.

The company said it still expected occupancy and rental growth at the lower end of 93-96% and 2-3% ranges for 2026/27 and was on track to deliver guidance for �300-400 million of asset disposals in 2026 as it focused on a pivot to what it called "the strongest universities".

AO World confirmed it remained on track to meet full-year guidance, despite "material" cost headwinds.

Updating on year-end trading, the white goods retailer said total group revenue growth was expected to be around 11% in the 12 months to 31 March, with adjusted pre-tax profits slated to come in at the top end of its �45m to �50m range.

Mercantile Investment Trust reported a positive set of annual results, saying performance remained solid despite lagging its benchmark over the period.

Mercantile delivered a net asset value total return of 12.3% for the year to 31 January, compared with a 15.8% gain for its benchmark. Share price total returns for the period were 12.5%.

The trust said its performance for the year was supported by strong stock selection in industrials and selected financials, while investment banking, brokerage services and consumer discretionary holdings weighed on returns.