London pre-open: Stocks seen up as Trump announces Iran-Israel ceasefire

(Sharecast News) - London stocks were set to gain at the open on Tuesday after US president Donald Trump announced that a ceasefire between Israel and Iran has taken effect. The FTSE 100 was called to open around 45 points higher.

Ipek Ozkardeskaya, senior analyst at Swissquote Bank, said: "Middle East tensions suddenly waned after Iran fired missiles at a US air base in Qatar - having reportedly informed the US in advance. As a result, the missiles were intercepted. President Trump called Iran's move 'weak' and announced a few hours ago that Israel and Iran had reached a ceasefire agreement.

"A surprisingly swift development. Once again, Iran appears to have retaliated just enough to save face - without triggering broader escalation. Tensions will likely ease from here if Israel reciprocates. However, it remains unclear whether an actual ceasefire is in place, as missiles reportedly continue to be fired across the border. Iran has said it will stop if Israel does, but Israel has yet to make a formal statement."

In corporate news, recruiter SThree reported a drop in first-half net fees as it pointed to continued softness in new business across both the contract and permanent segments.

In the half year to 31 May, group net fees declined 14% to £159.1m in an "ongoing challenging trading environment".

Elsewhere, Rio Tinto announced a joint investment of $1.61bn with Hancock Prospecting to develop the Hope Downs 2 iron ore project in Western Australia's Pilbara region.

The mine is expected to produce 31 million tonnes of ore a year.

Drugmaker AstraZeneca said that Datroway has been approved in the US for patients with previously treated advanced EGFR-mutated non-small cell lung cancer.

AstraZeneca also noted that Datroway was the "first and only" TROP2-directed therapy approved for the treatment of lung cancer in the US.