London pre-open: Stocks to fall amid Middle East tensions

(Sharecast News) - London stocks were set to drop at the open on Friday amid escalating tensions in the Middle East, after Israel hit Iran's nuclear sites.

The FTSE 100 was called to open around 50 points lower.

Derren Nathan, head of equity research at Hargreaves Lansdown, said: "Tensions in the Middle East are running sky high as Israel launched a wave of airstrikes against Iran's nuclear development facilities overnight. The pre-emptive action comes just one day after the United Nations nuclear watchdog declared that Tehran is not complying with its obligations and Iranian officials threatened to open a new Uranium enrichment site.

"The US is not thought to be involved in the military action which threatens to scupper Washington's attempts to find a diplomatic solution to the nuclear question, where progress has been slow.

"It's no surprise FTSE 100 futures are pointing down this morning after the index crept to a record close of 8,884 yesterday as it shrugged off disappointing GDP data. Oil majors Shell and BP both felt the tailwind of rising oil prices, while precious metal producers Endeavour Mining and Fresnillo both had a good day. Risk is likely to remain off the table for now as the world braces for a response from Tehran, although recent history suggests Iran's capabilities to penetrate Israel's defences are limited."

On the UK corporate front, news was scarce, but drugmaker GSK said that its RSV vaccine, Arexvy, has been accepted for regulatory review by the European Medicines Agency to expand use in adults 18 years and older.

GSL said noted that Arexvy was the first RSV vaccine approved in the European Economic Area for the prevention of lower respiratory tract disease caused by RSV in adults aged 60 and older, and for those aged 50-59 years who are at increased risk for RSV disease.