𝓤𝓷𝓲𝓽𝓮𝓭 𝓝𝓮𝔀𝓼

The FTSE 100 started the week on the back foot on Monday as hopes for a peace deal in the Middle East once more hung in the balance.

“Just when you think it is safe to go back in the water, the alarm is sounded again,” said Tom Stevenson, investment director, Fidelity International.

The FTSE 100 closed down 58.55 points, 0.6%, at 10,609.08. The FTSE 250 ended 265.71 points lower, 1.2%, at 22,940.21, and the AIM All-Share fell 1.77 points, 0.2%, to 808.34.

Friday’s optimism gave way to renewed fears that hostilities could resume in the Middle East war after Iran closed the Strait of Hormuz following its brief reopening.

“The market mood is very different at the start of the week compared to Friday,” said Kathleen Brooks, research director at XTB.

The price of crude oil had plunged Friday after Iran said it would again allow ships to pass through the key shipping route, the Strait of Hormuz.

But prices rose once more on Monday as Iran closed the waterway and said the US blockade and seizure of an Iranian cargo ship breached the two-week ceasefire.

Brent oil traded higher at 94.45 dollars a barrel on Monday afternoon, compared with 89.15 dollars at the time of the equities close in London on Friday.

Ms Brooks said the jump in oil prices and pull-back in stocks is a reminder that the current ceasefire that expires on Wednesday is “fragile”.

On Monday, Iran insisted it has no plan to attend a new round of negotiations with the US, although US President Donald Trump said he was sending negotiators to Pakistan for talks.

In European equities on Monday, the CAC 40 in Paris ended down 1.1%, and the DAX 40 in Frankfurt fell 1.2%.

In New York, the Dow Jones Industrial Average was down 0.1%, the S&P 500 was 0.3% lower, and the Nasdaq Composite declined 0.5%.

Strategists at HSBC and UBS remained bullish on equity markets despite the latest market unease.

“Our view remains that we have passed peak geopolitical risk. Both sides have a strong incentive to find a deal. That said, we have been urging investors to expect a bumpy road to a lasting peace,” said Mark Haefele at UBS.

While, Max Kettner at HSBC said: “Despite the recent rally across the risk asset spectrum our sentiment and positioning framework still sends a buy signal. In short: be quick.”

The yield on the US 10-year Treasury stretched to 4.26% on Monday compared with 4.24% on Friday. The yield on the US 30-year Treasury widened to 4.89% from 4.88%.

The pound eased to 1.3535 dollars on Monday afternoon from 1.3556 dollars on Friday. Against the euro, sterling firmed to 1.1486 euros from 1.1481 euros.

The euro traded lower against the greenback, falling to 1.1786 dollars on Monday from 1.1805 dollars on Friday. Against the yen, the dollar was trading higher at 158.58 yen, up from 158.08 yen.

On London’s FTSE 100, oil majors BP and Shell benefited from the rising oil price, up 2.9% and 2.5%, recouping some of Friday’s heavy falls, while British Airways owner IAG fell 2.2%.

On the FTSE 250, Renishaw led the risers, up 6.2%, as it raised full-year guidance reflecting buoyant demand and a further “substantial expansion of our order book”.

The Gloucestershire-based supplier of manufacturing technologies, analytical instruments and medical devices now expects revenue in the financial year to June of £775 million to £805 million, raised from guidance of £740 million to £780 million provided in February.

It projects adjusted pre-tax profit of £145 million to £165 million, lifted from £132 million to £157 million.

Plus500 gained 3.8% as it said customer income reached a five-year record high in the first quarter of 2026 as it forecast full-year revenue and earnings ahead of market expectations.

Reflecting a strong first quarter of 2026, the Israel-based trading platform operator said it expects 2026 revenue and Ebitda to be ahead of current market expectations which it put at 779.3 million dollars and 360.4 million dollars respectively.

Chief executive David Zruia said: “The group delivered an excellent performance in the quarter, with strong growth across key financial and operational metrics.”

Elsewhere, bid interest drove shares of Evoke and Advanced Medical Solutions higher.

William Hill owner Evoke jumped 4.1% after it said it is in discussions with US casino operator Bally’s Intralot regarding a possible all-share takeover offer worth more than £200 million.

Back in December, Evoke kicked off a strategic review, which it said could include a sale of the company, after the UK Government budget which the gambling firm warned would lift yearly duty costs by up to £135 million.

Meanwhile, Advanced Medical Solutions rose 16% as it confirmed it is in talks regarding a possible offer for the company, little more than 12 months after another potential suitor failed to secure a deal with the firm.

On Saturday, Sky News reported that Boston-based private equity firm TA Associates was preparing an offer for AMS worth around 280 pence per share, or £600 million in total.

On Monday, the Cheshire-based surgical dressings company confirmed the talks with TA Associates, but stressed there can be no certainty that a firm offer will be made.

In March 2025, AMS was the subject of bid interest from London-based mid-market private equity firm Montagu Private Equity LLP, although no formal offer materialised.

AJ Bell investment director Russ Mould noted the latest takeover talks mean that 20 firms on the UK stock market are already involved in bid discussions this year.

“Even though the would-be buyers are yet to set a price tag for five of the proposed transactions, the total value of bids on the table is already £29.3 billion, equivalent to the aggregate reached across all successful bids in 2025, and the largest sum at this stage for any year this decade,” he pointed out.

Mr Mould said the level of interest “suggests that would-be buyers still believe the UK stock market offers value”.

Gold traded at 4,806.14 dollars an ounce on Monday, down from 4,869.13 dollars at the same time on Friday.

The biggest risers on the FTSE 100 were Centrica, up 6.90p at 204.30p, BP, up 15.90p at 556.90p, Shell, up 78.50p at 3,274.50p, British American Tobacco, up 82.00p at 4,224.00p and SSE, up 47.00p at 2,516.50p.

The biggest fallers on the FTSE 100 were Metlen Energy & Metals, down 1.88p at 33.70p, Antofagasta, down 175.50p at 3,783.50p, Barratt Redrow, down 11.10p at 268.00p, Rolls Royce, down 48.20p at 1,262.40p and Fresnillo, down 120.00p at 3,662.00p.

Tuesday’s global economic calendar has UK unemployment and average earnings data at 7am, followed by US retail sales figures.

Tuesday’s local corporate calendar has a trading statement from miner Rio Tinto and half-year results from Primark owner Associated British Foods.

Contributed by Alliance News