London midday: FTSE pares gains as investors mull US-Iran standoff, Starmer speech

(Sharecast News) - London stocks had pared gains by midday on Monday, along with oil prices, after Donald Trump slammed Iran's response to a US peace proposal and as investors mulled a speech by beleaguered Prime Minister Keir Starmer.

The FTSE 100 was 0.1% higher at 10,247.04, while Brent crude was up 2.3% at $103.65 a barrel.

Over the weekend, Iran sent its response to a US proposal for peace talks via Pakistan. The response reportedly focused on ending the war on all fronts, including Lebanon, and made demands for compensation for war damages and an end to the US naval blockade.

It also included demands for recognition of Iranian sovereignty over the Strait of Hormuz, guarantees against further attacks and the lifting of sanctions.

However, the US president said on Truth Social that he did not like Tehran's proposal, calling it "totally unacceptable".

Susannah Streeter, chief investment strategist at Wealth Club, said: "The squabbling between the US and Iran over the baseline for a resolution to the war is now becoming the new normal. Investors are largely shrugging off the latest skirmishes and accusations from both sides that their proposals fall far short of expectations.

"London's FTSE 100 has opened higher at the start of the week, helped by another rise in the share prices of energy companies, which remain the big beneficiaries of the conflict. As hopes have been dashed again for some kind of diplomatic breakthrough, oil prices have risen again. Brent crude broke through the $105 a barrel mark, as the prospects of a longer energy crunch increase. While there's some expectation that a major reignition of the war is less likely, given the US claims a ceasefire is still in place, severe supply constraints of commodities are set to continue with the Strait of Hormuz impassable."

On home shores, investors mulled a speech by prime minister Keir Starmer, who insisted he would not walk away from Number 10 but acknowledged that the UK would go down "a very dark path" if the government did not start to do better.

In equity markets, Airtel Africa surged after shareholder Bharti Airtel said it considering a reorganisation of its subsidiary companies' shareholding frameworks, including Airtel.

Compass Group shot higher as it boosted its full-year outlook following a robust first half. The catering giant now expects annual organic operating profit growth of more than 11%, up from previous guidance for around 10%, after underlying interim revenues rose 9% to $25bn and profits jumped 12% at $1.8bn.

British Airways and Iberia owner IAG flew higher as JPMorgan said it remained 'overweight' the shares after a "good" first quarter, driven by strong pricing. The bank also said it expects robust earnings and free cash flow this year despite the impact from higher fuel.

Vodafone gained ahead of full-year results on Tuesday.

On the downside, Victrex fell as it posted a decline in first-half underlying pre-tax profit and said it was cutting its workforce by around 10%.

F&C Investment Trust tumbled but the drop was technical and due to a 4 for 1 share split becoming effective.

Market Movers

FTSE 100 (UKX) 10,247.04 0.14%

FTSE 250 (MCX) 22,803.65 -0.20%

techMARK (TASX) 5,905.00 -0.34%

FTSE 100 - Risers

Airtel Africa (AAF) 412.20p 12.70%

International Consolidated Airlines Group SA (CDI) (IAG) 410.00p 6.34%

Metlen Energy & Metals (MTLN) 37.51p 3.28%

Compass Group 11 (CPG) 30.37p 2.64%

British American Tobacco (BATS) 4,333.00p 1.57%

Vodafone Group (VOD) 120.35p 1.52%

Hiscox Limited (DI) (HSX) 1,641.00p 1.17%

DCC (CDI) (DCC) 5,800.00p 1.04%

Aviva (AV.) 625.20p 1.03%

NATWEST GROUP (NWG) 584.80p 0.93%

FTSE 100 - Fallers

F&C Investment Trust (FCIT) 332.50p -74.85%

JD Sports Fashion (JD.) 72.16p -3.68%

Flutter Entertainment (DI) (FLTR) 7,288.00p -3.55%

Babcock International Group (BAB) 1,019.00p -3.14%

Entain (ENT) 531.20p -2.99%

Autotrader Group (AUTO) 508.60p -1.97%

Weir Group (WEIR) 2,448.00p -1.92%

BAE Systems (BA.) 1,901.00p -1.87%

Melrose Industries (MRO) 502.40p -1.80%

Burberry Group (BRBY) 1,186.00p -1.78%

FTSE 250 - Risers

Shawbrook Group (SHAW) 332.00p 2.63%

RTW Biotech Opportunities Ltd (RTW) 2.20p 2.33%

AEP Plantations (AEP) 2,020.00p 2.32%

Ithaca Energy (ITH) 268.20p 2.25%

The Renewables Infrastructure Group Limited (TRIG) 70.50p 2.17%

Helios Towers (HTWS) 239.40p 1.96%

International Workplace Group (IWG) 191.00p 1.65%

Diversified Energy Company (DI) (DEC) 1,168.00p 1.39%

Gamma Communications (GAMA) 933.00p 1.33%

FirstGroup (FGP) 166.40p 1.21%

FTSE 250 - Fallers

Aston Martin Lagonda Global Holdings (AML) 45.02p -4.00%

WH Smith (SMWH) 492.80p -3.09%

Oakley Capital Investments Limited (DI) (OCI) 460.50p -3.05%

B&M European Value Retail (BME) 168.80p -2.70%

Oxford Biomedica (OXB) 628.00p -2.47%

Travis Perkins (TPK) 521.00p -2.34%

Genuit Group (GEN) 252.60p -2.24%

Raspberry PI Holdings (RPI) 705.00p -2.22%

ICG Enterprise Trust (ICGT) 1,344.00p -2.18%

Coats Group (COA) 82.70p -2.01%