Market update: Defence and gold stocks in demand, FTSE 100 holds firm
09:48 , Graeme EvansBabcock International today extended its strong run as FTSE 100 investors weighed up potential beneficiaries of the government’s defence spending review.
The naval dockyards business rallied 5% or 43p to 979p, meaning the recently-promoted shares have lifted by more than 90% since the start of the year.
BAE Systems and Rolls-Royce both traded at fresh records early in the session before settling 24.5p higher at 1926p and up 4.8p at 871p respectively.
The gains, which also included a rise of 3% or 14.6p to 511.8p for Qinetiq in the FTSE 250 index, came as the UK announced it will build up to 12 new nuclear-powered attack submarines.
The government also pledged to increase defence spending to 2.5% of GDP by 2027 but stopped short of guaranteeing that it will rise to 3% by 2034.
In an otherwise lacklustre session for the FTSE 100 index, gold miners also provided interest after the price of the precious metal rose 2% to $3353 an ounce.
This reflected demand for safe haven assets after President Trump doubled existing tariffs on US steel and aluminium imports to 50%.
Fresnillo lifted 3% or 38p to 1201p and Endeavour Mining improved 66p to 2318p.
The FTSE 100 index stood 6.99 points higher at 8779.37 while the FTSE 250 index improved 15.36 points to 21,043.37.
Mid-cap risers included ME Group, which rallied 3% or 5.5p to 220p after the photobooth and laundry services business reported a 6% rise in half-year underlying sales.
The board continues to anticipate a record full-year profit of between £76 million and £80 million.
Babcock continues run in robust FTSE 100, Rolls higher
08:34 , Graeme EvansDefence stocks are in demand in the FTSE 100 index, led by Babcock International after the UK announced it will build up to 12 new nuclear-powered attack submarines.
The plan, which is part of today’s defence spending review, helped the naval dockyards business to rise by 34p to 970p. Its shares are up by more than 90% this year.
BAE Systems also lifted 36.5p to 1938p while Rolls-Royce added 12.4p to 878.6p.
The FTSE 100 index is 3.96 points higher at 8776.34, with GSK and Tesco among the other stocks in positive territory.
Drug maker set to ditch London listing
07:59 , Graeme EvansDrug maker Indivior is set to give up its London stock market listing.
Indivior, which has its UK headquarters in Slough, only moved its primary listing to Nasdaq last June and now wants to sever all share trading links with the City.
The Sublocade maker said 80% of its revenue is generated in America and that trading on Nasdaq accounts for approximately 75% of total volumes across both exchanges.
Indivior was spun out of its former parent company, the consumer products giant Reckitt Benckiser in 2014 as a free standing London listed company.
Brent Crude higher after OPEC+ supply update
07:41 , Graeme EvansThe price of Brent Crude today rose by more than 2%, despite plans by OPEC+ to increase output for a third successive month in July.
Saturday’s announcement of an additional 411,000 barrels a day was in line with expectations, helping to underpin the price at $64.28 a barrel this morning.
The commodity fell as far as $60 a barrel in early May, having been near to $75 prior to President Trump’s Liberation Day tariffs announcement.
Average house price up 0.5% in May - Nationwide
07:21 , Graeme EvansA 0.5% month-on-month improvement today lifted annual UK house price growth to 3.5% in May, up from April’s rate of 3.4%.
The research by building society Nationwide shows an average price of £273,427.
Despite global uncertainties, Nationwide chief economist Robert Gardner said underlying conditions for potential home buyers in the UK remain supportive.
He added: ““Unemployment remains low, earnings are rising at a healthy pace (even after accounting for inflation), household balance sheets are strong and borrowing costs are likely to moderate a little if Bank Rate is lowered further in the coming quarters as we, and most other analysts, expect.”
Vodafone seals Three tie-up
07:13 , Graeme EvansMobile phone giant Vodafone today announced the completion of its UK merger with Three.
The combined business, which is named VodafoneThree, is 51% owned by Vodafone and 49% by Three owner CK Hutchison Group Telecom Holdings.
VodafoneThree has pledged to invest £11 billion over the next 10 years as it looks to create one of Europe's most advanced 5G networks.
The chief executive is Max Taylor, who previously led Vodafone UK.
FTSE 100 set for solid start, Nikkei 225 down sharply
07:00 , Graeme EvansAsia markets are trading lower, with a stronger yen contributing to a 1.3% fall for Tokyo’s Nikkei 225 down by 1.4%.
The Hang Seng index lost 1.1% against a backdrop of renewed trade war fears after President Trump doubled levies on steel and aluminium imports to 50%.
The FTSE 100 index is seen near to its opening mark, having ended Friday’s session up 0.6% to 8772.
