LONDON MARKET OPEN: Weak trade as Trump warns Iran "clock is ticking"

Mon, 18th May 2026 08:46

(Alliance News) - Stock prices in Europe opened largely lower on Monday, as a surge in the oil price on conflict worry intensified inflation fear.

The rate sensitive housebuilding sector was on the decline, while miners fell on underwhelming China data. Oil majors climbed, however, tracking Brent higher.

The FTSE 100 index traded just 1.12 points higher at 10,196.49. The FTSE 250 was down 146.12 points, 0.7%, at 22,450.02, and the AIM all-share lost 7.08 points, 0.9%, at 801.81.

The Cboe UK 100 was up 0.2% at 1,012.84, the Cboe UK 250 lost 0.2% at 19,375.97, and the Cboe small companies was flat at 18,427.71.

In Paris, the CAC 40 was down 0.9%, while the DAX 40 in Frankfurt declined 0.6%.

Sterling rose to USD1.3352 early Monday from USD1.3319 late Friday afternoon. Against the euro, it bought EUR1.1466, up slightly from EUR1.1462.

The euro rose to USD1.1637 from USD1.1622. Against the yen, the dollar rose to JPY158.89 from JPY158.68.

A barrel of Brent surged to USD110.75 on Monday from USD108.83 at the time of the London equities close on Friday.

US President Donald Trump issued a fresh warning to Iran on Sunday, saying it had to move quickly towards a peace deal or "there won't be anything left of them."

Washington, locked in conflict with Tehran since US and Israeli forces launched major strikes on the Islamic republic beginning February 28, has struggled to break an impasse and make any progress toward ending a war that has shaken the Middle East and sent energy prices climbing.

"For Iran, the Clock is Ticking, and they better get moving, FAST, or there won't be anything left of them," Trump wrote on his Truth Social platform. "TIME IS OF THE ESSENCE!"

The yield on the 10-year US Treasury stretched to 4.62% on Monday from 4.58% at the time of the London equities close on Friday. The 30-year yield widened to 5.14% from 5.12%.

Lloyds Bank analysts said yields are "reflecting greater inflation risks and the chance of an offsetting central bank response in rates".

Inflation worries kept a lid on housebuilders. Persimmon and Barratt Redrow fell 1.6% and 1.7%. Tracking oil higher, BP added 1.1%.

In the UK this week, economic data and events in Westminster are set to dominate the agenda. There are also

"The data docket will be full, with the March labour market report due on Tuesday, followed by April's inflation, public finance, and retail sales reports," analysts at Deutsche Bank commented.

The prospect of a leadership challenge to UK Prime Minister Keir Starmer is looming closer after Andy Burnham was cleared to run for selection in the Makerfield by-election.

Starmer's government will return to Westminster after a battle over reversing Brexit was ignited among the rivals vying to oust him as PM.

Wes Streeting, who resigned as health secretary last week, signalled he wanted to see Britain return to the EU as he announced on Saturday he would stand in any Labour leadership contest.

Supporters of Burnham are reportedly furious with Streeting, according to the Times, as they believe it is a deliberate attempt to raise the salience of Brexit in the leave-voting constituency of Makerfield, where the Greater Manchester Mayor hopes to stand as a parliamentary candidate.

Burnham sought to play down his own support for rejoining the trade bloc as he took part in a media blitz across the weekend.

In New York on Friday, the Dow Jones Industrial Average closed down 1.1%, the S&P 500 shed 1.2% and the Nasdaq Composite declined 1.5%.

In Tokyo on Monday, the Nikkei 225 ended down 1.0%. The Shanghai Composite in China ended 0.1% lower, while the Hang Seng Index in Hong Kong shed 1.2%. The S&P/ASX 200 slumped 1.5%.

China reported softer retail and industrial activity in April while unemployment eased, official data showed Monday.

According to the National Bureau of Statistics, the urban surveyed unemployment rate was at 5.2% in April from 5.4% in March.

Retail sales grew 0.2% year-on-year in April, missing the FXStreet-cited consensus forecast of 2.0% growth and easing from the 1.7% increase recorded in March.

Meanwhile, industrial production grew 4.1% on-year in April, below the 5.9% growth consensus and the 5.7% rise the previous month.

ING analysts commented: "China's domestic activity data disappointed across the board in April, signalling a second-quarter slowdown. Weaker growth and rising inflation could complicate policymaking in the coming months."

Miners fell in the wake of the data. China is a major buyer of minerals. Antofagasta fell 1.3%, while Anglo American was 1.8% lower.

Anglo said it has found a new buyer for a steelmaking coal portfolio. It has struck a deal to sell its portfolio of steelmaking coal mines in Australia to Dhilmar for up to USD3.88 billion in cash. Dhilmar will pay the miner USD2.3 billion upfront, and the deal has a price-linked earnout of up to USD1.58 billion.

"Our agreement for Dhilmar to acquire our steelmaking coal business in Australia is testament to the high quality of these assets and our people. Dhilmar's leadership brings considerable experience of operating major mining assets, including in steelmaking coal, in Southeast Asia and Canada," Anglo American Chief Executive Officer Duncan Wanblad said.

"This agreement represents another major step in the simplification of our portfolio ahead of completing our merger with Teck. Through this transaction, we will complete our exit from steelmaking coal, delivering aggregate cash proceeds of up to USD4.9 billion, given the prior completion of the sale of our interest in the Jellinbah mine for approximately USD1 billion."

Dhilmar is a privately-held mining company whose assets include the Eleonore gold mine in Canada, acquired from Newmont last year.

Anglo American added: "In parallel with the transaction, Anglo American continues to pursue the arbitration with Peabody in relation to its November 2024 agreement to acquire the steelmaking coal portfolio. Anglo American remains confident that the incident at Moranbah North relied upon by Peabody in support of its purported termination of its agreement did not constitute a material adverse change."

Peabody had backed out of a deal to acquire the portfolio last year.

Elsewhere in London, Advanced Medical Solutions slumped 22%. It "remains confident" in its prospects, after a suitor ruled out making a bid for the surgical dressings company.

TA Associates on Friday said it "does not intend to make an offer for AMS".

In response, AMS said: "The board of AMS remains confident in AMS' standalone prospects and strategy which it believes will continue to deliver sustainable growth and value creation for shareholders."

Last month, AMS confirmed talks with TA Associates, but stressed there can be no certainty that a firm offer will be made, nor as to the terms on which it might be made. Sky News has last month reported TA Associates was preparing an offer for AMS worth around 280 pence per share, or GBP600 million in total.

Gold rose to USD4,555.22 an ounce on Monday from USD4,544.53 late Friday afternoon.

By Eric Cunha, Alliance News news editor

Comments and questions to newsroom@alliancenews.com

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