London stocks have gained ground on Monday, with the FTSE 100 up 0.4% and the FTSE 250 gaining 0.6%.
The mood is positive across Europe, where Germany’s DAX has jumped 1.5%, the Euro Stoxx 50 has risen 1.2% and France’s CAC 40 has added 0.6%.
The driver is a de-escalation in the Middle East…
The U.S. paused its attacks on Iran for a second straight day on Sunday, with Tehran reciprocating, as mediators reportedly work to revive an interim ceasefire centred on easing restrictions for vessels transiting the Strait of Hormuz.
As a result, Brent crude has slumped 6.3% to $85.92 a barrel, while WTI has fallen 6.5%. The softer risk premium and weaker dollar lifted spot gold 1% and silver 2%.
Overall, it is a key week for markets…
Apple, Microsoft, Meta and Amazon all report, while central banks take centre stage with a Federal Reserve decision on Wednesday, the Bank of England on Thursday and the Bank of Japan on Friday.
Getting back to today,…JD Sports (LON: JD.) leads the FTSE 100, up 5.40%, with RELX (LON: REL) rising 4.01%.
Vodafone (LON: VOD) has gained 3.84% after a first-quarter update showed service revenue growth, including growth in Germany.
AstraZeneca (LON: AZN) is trading higher after also reporting half-year results, with revenue up 6% amid double-digit growth in Oncology and Rare Disease offsetting headwinds from Farxiga US loss of exclusivity and China volume-based procurement. Core earnings per share rose 11%.
The oil retreat has weighed on energy and commodity names, with BP (LON: BP.) falling 3.39%, Glencore (LON: GLEN) losing 2.20%, Centrica (LON: CNA) slipping 1.99% and Shell (LON: SHEL) dropping 1.56%.
In deal news, DCC Energy (LON: DCC) agreed a takeover by an Energy Capital Partners and KKR consortium worth up to 6,797 pence per share in cash.
Serica Energy (LON: SQZ) made a recommended £145.7 million cash offer for Pharos Energy at 33.6 pence per share, trumping a rival bid from Ratio Petroleum.
In the FTSE 250, GlobalData (LON: DATA) has risen 5.44%, Trainline (LON: TRN) has gained 3.90% on a buyback, and Trustpilot (LON: TRST) has added 3.83%.
Vesuvius (LON: VSVS) slumped 9.87% after a trading statement revealed the company has continued to be impacted by operational issues in its Steel division.
Elsewhere, oil fallers Harbour Energy (LON: HBR) and Ithaca Energy (LON: ITH) have dropped 6.17% and 6.13%, respectively.
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