FTSE 100 Cautious as European Markets Edge Higher; Sainsbury, Intertek Shares Fall

The FTSE 100 is flat on Monday morning as investor caution persists following reports that US President Donald Trump abandoned weekend plans to send envoys to Pakistan for talks with Iran, with Tehran also confirming no meetings between the two sides were scheduled.

The FTSE 250 is up 0.1%, Germany’s DAX has gained 0.3% and France’s CAC 40 is up 0.1%.

Oil prices have risen more than 2% on the geopolitical concerns, lifting BP and Shell 0.9% and 0.6% respectively. Whitbread leads the FTSE 100 risers at +2.6%, followed by Burberry at +1.3% and M&G at +1.1%.

On the downside, Entain is the biggest faller, dropping 3.6%. Intertek is down 3.3% after it revealed, following Friday’s close, that it rejected an improved takeover proposal from EQT, with the board concluding that the sweetened offer still fundamentally undervalues the company and its prospects.

Sainsbury’s has fallen 3.1% after Goldman Sachs downgraded the supermarket to ‘sell’ and cut its price target from 390p to 335p. While the bank acknowledged that Sainsbury’s full-year results were broadly in line with expectations, it flagged a more challenging outlook ahead, citing weakening consumer spending and intensifying competition in non-food retail as key headwinds.

Overall, the FTSE 100 has started the week cautiously, with traders so far reluctant to make significant moves amid continued uncertainty over the trajectory of the Middle East conflict.