Thursday Morning Markets: FTSE 100 Lags as Ceasefire Hopes Boost European Stocks

European markets are trading higher this morning, in contrast to the FTSE 100.

The UK blue-chip index is nursing a modest -0.3% decline while the DAX climbs +0.5%, the CAC 40 adds +0.7%, and the broader Stoxx 600 edges up +0.1%. 

However, London’s more domestically focused FTSE 250 is up +0.2% so far in the session.

The ceasefire effect

Overnight news of an Israel-Lebanon ceasefire agreement boosted sentiment, despite the fragility.

Brent crude has retreated to around $96.7 a barrel, pulling back from above $98 as traders priced out some of the Middle East war premium. 

For the DAX and CAC, cheaper energy is broadly welcome. For the FTSE 100, which has a weighting toward oil majors, the oil price slide can be somewhat of a drag. 

BP and Shell are among the early fallers, down -0.8% and -1.1%, respectively.

The biggest FTSE 100 gainer this morning is RELX, up over +3%. On Wednesday, Goldman Sachs initiated the stock at Buy.

In the FTSE 250, CMC Markets has surged more than 17% after the online trading and investment group reported a standout set of preliminary full-year results.

The geopolitical picture remains complicated. Overnight, the Republican-led House moved to constrain Trump’s war authority over Iran in a notable rebuke. However, reports note that it’s unclear how much legal force the House measure would have.

Meanwhile, the Iran conflict has drained US oil stocks to their lowest level since 2004, according to the FT.

Wall Street mixed

US index futures are somewhat mixed, with Dow futures ticking up 0.4%, S&P 500 futures sliding 0.3% and the Nasdaq futures declining 0.8%. 

Broadcom was a significant culprit, falling almost 13% premarket after a disappointing quarterly report rattled the AI infrastructure trade.

CrowdStrike is down 10.6% premarket after its results also disappointed investors.

Meanwhile…

SpaceX is reportedly pitching investors at a staggering $1.8 trillion valuation as it courts interest ahead of what would be the largest stock market debut in history. 

In passive investing, Vanguard’s S&P 500 ETF has become the first fund of any kind to surpass $1 trillion in assets. 

And in private markets, Partners Group is limiting withdrawals from its flagship PE fund, a reminder that liquidity in alternatives is never guaranteed.

Gold is quietly climbing as the dollar softens on peace hopes.