Source: Sharecast
The FTSE 100 was called to open around 17 points lower. At 0726 BST, Brent crude was down 1.5% at $72.66 a barrel and West Texas Intermediate was off 1.2% at $69.53, falling back to pre-war levels as shipping through the Strait of Hormuz picked up.
Investors will also be mulling results overnight from Micron Technology.
Ipek Ozkardeskaya, senior analyst at Swissquote, said the company delivered strong results, but more importantly, comfortably beat Wall Street expectations on both the top and bottom lines, with revenue of nearly $41.5bn versus around $36bn expected, while adjusted earnings per share came in at $25.11 versus about $21 expected.
"Guidance for the current quarter also came in well above expectations: the company expects revenue of around $49-51bn versus roughly $45bn pencilled in by analysts," she added.
Looking to the rest of the day, all eyes will be on US personal spending figures for May, out at 1330 BST, along with first-quarter US GDD data.
"The focus will be on the PCE and core PCE figures - the Fed's preferred gauges of inflation," said Ozkardeskaya.
"Headline PCE is expected to rise above the 4% y-o-y mark in May, in line with the CPI figures released earlier this month, while core PCE is expected to have risen from 3.3% to 3.4% y-o-y. Both remain well above the Fed's 2% inflation target. A softer-than-expected set of figures could temper hawkish Fed expectations, alongside easing inflation expectations thanks to lower energy prices and let the tech stocks take a breather - and rebound.
"A stronger-than-expected set of numbers, however, could further embolden Fed hawks and reverse the post-Micron optimism, bringing back the unpleasant topic of rising borrowing costs at a time when Big Tech is taking on increasing amounts of debt to finance its AI ambitions."
In corporate news, easyJet has rejected the latest approach from US suitor Castlelake, the budget carrier confirmed, but agreed to continue discussions.
The airline has now rebuffed four proposals from the private equity firm for undervaluing the business. It also flagged "significant questions" about deliverability.
But it confirmed it had given Castlelake more time to access limited commercial information, in the hope it may lead to an increased offer. As a result, Castlelake now has until 1700 BST on 5 July to make a firm offer or walk away.
Aerospace and defence firm Chemring said it has secured two new US defence contracts worth a combined $345m, enabling the restart of sustained manufacturing at its Alloy Surfaces Company decoy facility in Philadelphia.
Chemring said it had signed a modification to an existing IDIQ contract under the Defense Production Act for the supply of pyrophoric airborne decoys. The award carries a maximum value of $300m over five years, with guaranteed minimum orders of $35m a year for the first three years. It also agreed a separate $45m OTA funding package to restart production and transfer ASC's intellectual‑property rights to the Department of War.
Infrastructure group Balfour Beatty said it had won a two-year contract worth £325m from Scottish and Southern Electricity Networks (SSEN) to deliver the Netherton Hub in Aberdeenshire, Scotland.
The Netherton Hub will strengthen the UK's national grid and enable renewable energy from northern Scotland to be transmitted efficiently to demand centres nationwide, the company said.