Monday Morning Markets: FTSE Slips; Housing Data Disappoints and Hormuz Tensions Simmer

London’s benchmarks opened lower on Monday, tracking a soft tone across Europe.

The FTSE 100 and FTSE 250 are both down 0.2% in early trade, while on the continent the DAX slips 0.3%, the CAC 40 is flat and the Stoxx 50 is off 0.1%.

Fresh UK housing data was posted this morning, with Lloyds reporting the first annual fall in house prices since November 2023, with values down 0.4% year-on-year in August to an average £298,468, as elevated borrowing costs continue to weigh on buyer demand.

Investors are now looking ahead to Friday’s UK GDP print and US inflation figures.

Meanwhile, the US-Iran standoff around the Strait of Hormuz continues to rumble on, with Washington striking Iranian tankers and Tehran vowing to unveil a new “exclusion zone” for shipping in the coming days.

Despite the escalation, oil is little moved this morning, with Brent flat at $96.28 and WTI down 0.3% at $91.24. Spot gold ($4,415, -0.3%) and silver ($65.75, -0.7%) have also eased.

On stocks, Spire Healthcare (+2.94%) is the standout FTSE 250 mover after agreeing to a £1.03bn recommended takeover by a Toscafund-led consortium (with Three Hills and Ares) at 250p a share, a 66% premium to its pre-bid price, alongside board changes announced the same day.

IQE shares jumped after H1 revenue grew over 40% and it confirmed plans to move to the Main Market. Grainger also rose on a solid 11-month trading update, with occupancy above 96% and rental growth on track.

Elsewhere, Fresnillo (-3.08%) tracked softer precious metals prices, while consumer names Haleon (-2.30%) and Diageo (-2.02%) lagged.

In the FTSE 250, leisure and services names Hollywood Bowl (-5.68%), Rank Group (-4.48%) and Trustpilot (-3.54%) are among the session’s weakest performers, while Admiral, BP and Games Workshop lead the FTSE 100 gainers, and Ceres Power topps the 250.