Market update: Oil stocks limit FTSE 100 gains, easyJet up 6%
10:16 , Graeme EvansThe FTSE 100 index trailed European benchmarks today as weaker energy and safe haven stocks offset the boost of the Iran-Israel ceasefire announcement.
Frankfurt’s Dax rose 2% and the Cac 40 by 1.3% in Paris, whereas London’s top flight stood 0.35% or 31.13 points higher at 8789.17.
The top flight’s heavy energy exposure weighed on the performance following the biggest daily decline in Brent Crude price since 2022.
As fears of disruption in the Strait of Hormuz eased, the price stood at $69 a barrel compared with $79 following the weekend US attacks on Iran nuclear facilities.
The ceasefire announcement sent the price as low as $67 at one point before later rising after Israel accused Iran of violating the agreement.
The developments lifted British Airways owner IAG and easyjet shares by 6% as the sector benefited from an improved outlook for jet fuel and geopolitical risk.
The pair rose 18.6p to 327.3p and 31.8p to 538.4p respectively, while Holiday Inn hotels group IHG improved 202p to 8380p.
Other global stocks in demand included events business Informa, which lifted 24.2p to 809.2p, and transatlantic retailer JD Sports Fashion after a rise of 2.6p to 74.4p.
With the Hang Seng index in Hong Kong up 2%, Asia-facing bank Standard Chartered put on 27.5p to 1190p and HSBC lifted 20.1p to 880.4p.
On the fallers board, BP slid 5% or 19.65 366.75p as the return of Brent Crude to below $70 a barrel reignited concerns over the future of shareholder distributions.
Shell dropped 3% or 89.5p 2594.5p, alongside declines of 2% for British Gas owner Centrica and SSE.
BAE Systems also weakened 36p to 1844p, while defensively positioned stocks Imperial Brands and British American Tobacco reversed 1%.
The FTSE 250 index outperformed the blue-chip index with a gain of 0.8% or 178.05 points to 21,299.
Cruise ship operator Carnival rose 5% or 82p to 1622.5p while Ocado rallied 6.2p to 236.3p after Kantar figures showed the online grocer lifted market share.
Harbour Energy and Ithaca Energy were bottom of the FTSE 250 after falls of 7% and 6% respectively.
In the FTSE All-Share, STEM recruitment firm SThree jumped 21.5p to 245p after an in-line half year update showed a modest sequential improvement in trading.
The performance offered reassurance after last week’s profit warning by Hays.
Bunzl shares rise after reassuring update
09:35 , Graeme EvansFTSE 100-listed distribution group Bunzl today rose 36p to 2356p as acquisitions drove 4% revenues growth in the first half and margins met 7% guidance.
The update reassured two months after the company cut its profit forecast for 2025 and paused share buybacks due to tariff pressures in North America.
Chief executive Frank van Zanten said: “Alongside a macroeconomic backdrop that remains uncertain, the group is trading in-line with our expectations.
City firm Peel Hunt said: “This statement is likely to be well received following the shock warning earlier in the year.
“It looks increasingly like it was ‘one and done’, and the focus can now return to the long-term attractions of the compounding model.”
Ocado and Tesco make headway, grocery prices rise
08:58 , Graeme EvansOcado shares have risen 8p to 238.1p after Kantar research showed the online grocer increased its market share in the 12 weeks to 15 June.
Sales by Ocado’s Marks & Spencer joint venture lifted 12.2% versus a year ago for a 1.9% share of the market.
Tesco registered the biggest market share gain over the period, up to 28.1% from 27.6% previously. Sales lifted 7% on a year earlier.
Asda’s sales fell by 1.7% on a year ago, leaving it with a market share of 11.9%. Sainsbury’s improved to 15.2%.
Kantar added that grocery prices are now 4.7% more expensive than a year ago as supermarket inflation hit its highest level since last March.
Saga in talks over NatWest partnership
08:37 , Graeme EvansSaga is in final negotiations with lender NatWest over the launch of a range of personal banking products.
The group, which offers cruises and insurance services for people over 50, said a savings offering would be the first product set to launch under the tie-up.
In an AGM trading update, Saga said demand for holidays remained robust after booking revenues rose 14% and passenger numbers lifted 13% than a year earlier.
Shares fell half a penny to 171.1p.
Travel stocks surge in stronger FTSE 100, BP down 6%
08:28 , Graeme EvansIAG and easyJet shares have jumped 7% after the airline sector was boosted by a sharply lower oil price and easing of geopolitical risk.
The pair rose 21p to 329.7p and 37.2p to 543.8p respectively, while Holiday Inn hotels group IHG rallied 4% or 342p to 8520p in the wake of President Trump’s ceasefire Israel-Iran announcement.
Mining and banking stocks also benefited from the developments as Barclays added 3.5% or 11.2p to 329.85p, HSBC lifted 25.8p to 886.1p and Anglo American rose 66.5p to 2083.5p.
The FTSE 100 index improved 0.4% or 39.03 points to 8797.07, a performance held back by sharply weaker energy stocks.
BP slid 6% or 21.95p to 364.45p and Shell fell 109.5p to 2574.5p after the Brent Crude price returned to below $70 a barrel.
Gold miner Endeavour Mining also lost 3% or 74p to 2282p and BAE Systems weakened 57.5p to 1822.5p.
Wall Street futures higher, dollar weakens
07:33 , Graeme EvansBrent crude yesterday posted its biggest daily decline since 2022 as fears of supply disruption in the Strait of Hormuz eased.
Following Iran’s retaliation against US strikes and its subsequent ceasefire with Israel, the price fell another 2.5% to $68.34 a barrel.
This is near to the levels seen before Israel’s strikes against Iran on June 13.
The US dollar weakened after the outlook for interest rate cuts was boosted by the easing of inflationary pressures. The pound stood at $1.3591.
On Wall Street, futures trading suggests that leading US benchmarks are set for gains of about 1% later today.
Oil price falls back, Asia markets rally
07:01 , Graeme EvansThe price of Brent Crude has fallen sharply after President Trump last night announced a ceasefire between Iran and Israel.
The oil benchmark this morning traded at $68.78 a barrel, which compares with more than $79 in dealings early yesterday
The FTSE 100 index is set to open about 0.4% higher, having lost 16.61 points or 0.2% at 8758.04 by last night’s close.
On Wall Street, the S&P 500 index rose 1% and the Dow Jones Industrial Average and Nasdaq Composite by 0.9%.
In Asia, the Hang Seng index is 2% higher and the Nikkei 225 up by 1%.
