London midday: FTSE nudges up, gilt yields ease

(Sharecast News) - London stocks were a smidgen higher by midday on Monday, with oil giants and defensives lending a hand and gilt yields easing.

The FTSE 100 was 0.1% firmer at 10,205.72 and sterling was up 0.2% against the dollar at 1.3357. Meanwhile, Brent crude and West Texas Intermediate were both up 0.9% at $110.26 and $106.34 a barrel, respectively, paring earlier gains following reports that Iran has responded to a new US proposal to end the war.

According to Reuters, Pakistan has shared ​with the US ‌a revised proposal from Iran to ​end the Middle East conflict.

When asked if it would take time to close the gaps, a Pakistani source told Reuters: "We don't have ‌much ⁠time," ​adding that ​both ⁠countries "keep changing their goalposts".

Oil prices had been trading higher still earlier in the session, after Trump warned over the weekend that Iran was running out of time for peace talks. The US president said on Truth Social that "the clock is ticking" for Iran and "they better get moving, fast, or there won't be anything left of them".

He added: "Time is of the essence."

On home shores, former health secretary Wes Streeting confirmed he would run for prime minister if a leadership contest is triggered. Investors were also reacting to news that Greater Manchester mayor Andy Burnham has been cleared to stand in the upcoming Makerfield by-election in a bid to become an MP and challenge Keir Starmer.

Looking to reassure markets, Burnham said in an interview over the weekend that he supports the current fiscal rules as well as a plan to get debt down.

At midday, the 10-year gilt yield was down three basis points at 5.149%, while the yield on the 30-year gilt was also three basis points lower, at 5.817%, having surged last week on the prospect of a potential leadership challenge from Burnham.

Kathleen Brooks, research director at XTB, said: "The key test for UK markets will be whether the 10-year yield can fall below the 5% level, and if the 30-year yield is trusting enough of Burnham to back away from 1998- level highs."

In equity markets, oil giants BP and Shell gushed higher.

Defensive stocks were also in demand, with utilities Centrica, National Grid and SSE among the top gainers, while tobacco companies Imperial Brands and British American Tobacco also rose.

On the downside, housebuilders were among the worst performers amid concerns about the impact of higher interest rates, with Barratt Redrow, Persimmon, Berkeley and Vistry all lower. Adding to the sector's woes, a report over the weekend suggested Vistry has ordered subcontractors to halt work on new developments to preserve cash.

Elsewhere, Anglo American fell after agreeing to sell its portfolio of steelmaking coal mines in Australia to UK mining company Dhilmar for up to $3.9bn in cash.

Whitbread was also down after activist hedge fund Corvex Management urged the Premier Inn owned to put itself up for sale.

Market Movers

FTSE 100 (UKX) 10,205.72 0.10%

FTSE 250 (MCX) 22,457.58 -0.61%

techMARK (TASX) 5,804.72 -0.48%

FTSE 100 - Risers

Centrica (CNA) 194.40p 2.75%

BP (BP.) 564.60p 2.39%

National Grid (NG.) 1,215.50p 2.31%

Shell (SHEL) 3,255.00p 2.18%

Imperial Brands (IMB) 2,874.00p 2.13%

Admiral Group (ADM) 3,342.00p 1.70%

SSE (SSE) 2,308.00p 1.63%

British American Tobacco (BATS) 4,940.00p 1.56%

Hiscox Limited (DI) (HSX) 1,855.00p 1.42%

Tesco (TSCO) 455.10p 1.36%

FTSE 100 - Fallers

3i Group (III) 2,054.00p -6.97%

Entain (ENT) 518.20p -3.08%

Smurfit Westrock (DI) (SWR) 2,779.00p -2.97%

Barratt Redrow (BTRW) 236.40p -2.91%

Persimmon (PSN) 1,024.00p -2.15%

Berkeley Group Holdings (The) (BKG) 3,182.00p -1.91%

Whitbread (WTB) 2,271.00p -1.69%

Mondi (MNDI) 739.20p -1.54%

Autotrader Group (AUTO) 485.30p -1.36%

Legal & General Group (LGEN) 261.20p -1.36%

FTSE 250 - Risers

Ocado Group (OCDO) 193.90p 3.48%

Ceres Power Holdings (CWR) 759.00p 3.40%

Lancashire Holdings Limited (LRE) 635.50p 2.50%

Harbour Energy (HBR) 302.60p 2.44%

THG (THG) 32.20p 2.35%

Applied Nutrition (APN) 214.25p 1.54%

Johnson Matthey (JMAT) 2,140.00p 1.42%

AEP Plantations (AEP) 2,230.00p 1.36%

Hochschild Mining (HOC) 608.50p 1.33%

Foresight Environmental Infrastructure Limited (FGEN) 77.00p 1.32%

FTSE 250 - Fallers

Vistry Group (VTY) 261.40p -5.32%

RTW Biotech Opportunities Ltd (RTW) 2.11p -4.09%

Wizz Air Holdings (WIZZ) 912.50p -3.95%

Ashmore Group (ASHM) 209.80p -3.49%

Marshalls (MSLH) 129.20p -3.22%

Morgan Sindall Group (MGNS) 4,360.00p -3.05%

Moonpig Group (MOON) 199.10p -3.01%

JPMorgan Japanese Inv Trust (JFJ) 772.00p -2.77%

C&C Group (CDI) (CCR) 107.20p -2.73%

Baltic Classifieds Group (BCG) 184.30p -2.49%