LONDON MARKET OPEN: Stocks rise, Middle East remains volatile

Mon, 16th Jun 2025 08:54

(Alliance News) - Stock prices in London opened higher on Monday in London, ahead of a busy week for interest rate decisions.

The US Federal Reserve, the Bank of Japan and the Bank of England are all expected to hold rates steady at their respective meetings on Tuesday, Wednesday and Thursday, Swissquote's Ipek Ozkardeskaya said.

In the BoE's case, this is "despite growing concerns over the UK's fiscal path".

And US ambassador to Israel Mike Huckabee said an embassy building in Tel Aviv sustained minor damage from a nearby Iranian missile strike, reporting no injuries to US personnel.

AFP images showed gutted buildings in the coastal hub of Tel Aviv, after Israel's army warned people to take cover from incoming Iranian missiles. Huckabee said on X. He said the US embassy in Jerusalem would remain closed on Monday as orders to "shelter in place [are] still in effect".

The FTSE 100 index opened up 15.07 points, 0.2%, at 8,865.70. The FTSE 250 was up 35.67 points, 0.2%, at 21,209.00, and the AIM All-Share was up 1.00 points, 0.1%, at 762.43.

The Cboe UK 100 was up 0.3% at 883.84, the Cboe UK 250 was up 0.3% at 18,711.66, and the Cboe Small Companies was up slightly at 17,083.36.

On the FTSE 100, Entain jumped 7.0% after upgrading annual revenue and Ebitda guidance for its BetMGM business.

Glencore rose 1.4%. The miner confirmed that all regulatory closing conditions have been satisfied for the cash-and-share sale of its interest in Viterra to Bunge, which Glencore expects will close next month.

On the FTSE 250, Assura was 0.1% higher.

It noted Primary Health Properties' announcement on Friday revising the terms of its cash-and-share takeover offer. It said its board is reviewing the changes "and will continue to engage in extensive shareholder consultation". PHP was up 0.1%.

In smaller caps, Costain jumped 8.1%.

The construction and engineering firm announced its intention to launch a GBP10 million buyback programme, and confirmed that trading remains in line with the board's expectations for 2025.

In European equities on Monday, the CAC 40 in Paris was up 0.3%, while the DAX 40 in Frankfurt was up 0.3%.

The pound was quoted at USD1.3585 early on Monday in London, lower compared to USD1.3591 at the equities close on Friday. The euro stood at USD1.1579, higher against USD1.1560. Against the yen, the dollar was trading higher at JPY144.25 compared to JPY144.01.

In Asia on Monday, the Nikkei 225 index in Tokyo was up 1.3%. In China, the Shanghai Composite was up 0.4%, while the Hang Seng index in Hong Kong was up 0.7%. The S&P/ASX 200 in Sydney closed marginally higher.

In the US on Friday, Wall Street ended lower, with the Dow Jones Industrial Average down 1.8%, the S&P 500 down 1.1% and the Nasdaq Composite down 1.3%.

The yield on the US 10-year Treasury was quoted at 4.46%, widening from 4.42%. The yield on the US 30-year Treasury was quoted at 4.95%, widening from 4.90%.

Brent oil was quoted higher at USD74.76 a barrel early in London on Monday from USD73.61 late Friday.

"Some analysts argue that escalating conflict could ultimately dampen global growth and cap oil's upside," Ozkardeskaya said. "Others believe rising prices could encourage shale producers to boost output. Realistically, the risk of disruptions in the Strait of Hormuz – a critical chokepoint for a third of global oil flows – means the balance of risks remains tilted to the upside.

"Many experts warn that current tensions between Israel and Iran look more serious than in recent years, and that a broader conflict could send oil prices north of USD100 per barrel."

Gold was quoted lower at USD3.413.90 an ounce against USD3,427.50.

Still to come on Monday's economic calendar, the New York State manufacturing index is due in the afternoon.

By Emma Curzon, Alliance News reporter

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