Market update: Oil price steady, FTSE 100 benefits from China optimism
09:57 , Graeme EvansOil prices and the FTSE 100 index today held steady in a session when China’s latest retail sales figures offered some support to jittery global markets.
Brent Crude continued to trade near to $74 a barrel, having closed 7% higher on Friday amid fears over the impact of Israel-Iran conflict on supplies through the Strait of Hormuz.
The elevated level helped BP shares to rise another 3.7p to 390p in today’s session while Shell added 35p to 2666p as the FTSE 100 index edged up by 29.53 points to 8880.16.
Wall Street is also set to open higher later as benchmarks including S&P 500 index look set to recover some of the 1%-plus falls of Friday’s session.
As well as events in the Middle East, traders are focused on this week’s round of monetary policy announcements.
These include Wednesday's economic projections and comments of Federal Reserve chair Jerome Powell when he unveils an expected no-change interest rates decision.
Inflation data has been better than expected but this has been offset by the recent spike in oil and potential for future price increases from tariffs.
The Bank of England announces its latest decision a day later on Thursday, with economists expecting no change in the base rate at 4.25%.
The price of gold has reflected geopolitical uncertainty but fell back slightly to $3416 an ounce in today’s session. This impacted the price of Endeavour Mining, which fell 50p to 2350p as the worst performing FTSE 100 stock.
Other top flight risers included Standard Chartered, which put on 2.5% or 28.5p to 1174p after China recorded a 15-month high for retail sales growth in May.
The optimism over the world’s second largest economy helped to lift Anglo American by 36.5p to 2150p and Asia-focused insurer Prudential by 11.6p to 899.2p.
Ladbrokes owner Entain was the best performing blue-chip stock, up 8% or 63p to 814.4p after upgrading its guidance for US joint venture BetMGM.
In the FTSE 250 index, Metro Bank shares rose 12% or 13.4p to 125.6p after the Financial Times reported that the lender is the subject of bid interest from Pollen Street Capital.
Peel Hunt eyes progress after wider full-year loss
09:02 , Graeme EvansInvestment bank Peel Hunt today reported a wider annual loss but said the new financial year has started more positively.
It said: “We are seeing a rotation out of US assets into Europe and greater institutional positivity towards the UK.
“Equity capital markets activity in the UK remains generally subdued but could gain traction should macroeconomic conditions continue to stabilise.
“Meanwhile our M&A franchise remains highly active with a strong pipeline of transactions.”
Revenue for the year to 31 March rose 6% year-on-year to £91.3 million, despite ongoing low levels of equity capital markets activity and the challenging market conditions of February and March.
The loss of £3.5 million widened from £3.3 million, mainly due to one-off restructuring costs. On an adjusted basis, the group posted a profit of £800,000.
China-focused stocks support FTSE 100, oil giants higher
08:23 , Graeme EvansThe FTSE 100 index is 20.52 points higher at 8871.15, with China’s 15-month high for retail sales growth among the factors supporting sentiment.
Asia-focused Standard Chartered rose 3% or 34.5p to 1180p and Prudential cheered 2% or 17.6p to 905.2p after China’s retail sales lifted 6.4% year-on-year.
BP gained 5.45p to 391.8p and Shell added 39p to 2670p after the price of Brent Crude rose by another 0.9% to $74.90 a barrel.
Entain shares improved 6% or 42.6p to 794p as the Ladbrokes owner published upgraded guidance for its North American business BetMGM.
Among the fallers, GSK weakened 19.5p to 1492p and consumer goods group Haleon dropped 6.2p to 389.9p.
Bank policymakers continue wait-and-see approach
08:00 , Graeme EvansThe Federal Reserve and Bank of England are expected to keep interest rates on hold later this week.
The US central bank, which is under pressure from President Trump to cut borrowing costs, is also due to publish its summary of economic projections.
These are likely to show weaker growth and higher inflation, with the median dot plot pointing to one interest rate cut this year.
Ahead of Wednesday’s announcement, Deutsche Bank said: “Federal Reserve chair Jerome Powell's press conference is likely to emphasise uncertainty and a wait and see approach.
“The recent spike in oil will just add to all of this even if recent inflation data has been better than expected.
“Future price increases from tariffs loom in the background even if their initial impact has taken a bit longer to show up than expected.”
The Bank of England announces its latest decision a day later on Thursday, with economists expecting no change in the base rate at 4.25%.
Entain lifts BetMGM guidance
07:29 , Graeme EvansFTSE 100-listed Ladbrokes owner Entain today upgraded guidance for its North American joint venture BetMGM.
It said trading in the current quarter has been similar to the 34% year-on-year net revenue growth delivered in the opening three months of the year.
The performance reflects strong momentum across both iGaming and online sports.
Full-year net revenues are now expected to be at least $2.6 billion, up from the previous guidance range of $2.4 billion-$2.5 billion.
Underlying earnings are now forecast to be at least $100 million, up from the previous guidance to be earnings positive.
The business is jointly owned with MGM Resorts International.
Oil price edges higher, Asia markets strengthen
07:12 , Graeme EvansThe price of Brent Crude is near $74.60 a barrel, having surged by 7% on Friday amid fears of Middle East supply disruption.
Today’s rise of 0.5% was accompanied by a slight fall in the price of gold, which stands near to a record high of $3420 an ounce.
The FTSE 100 index is seen opening flat, having closed fallen by 0.4% at 8850.63 on Friday after Israel launched air strikes on Iran. Leading US benchmarks lost more than 1%.
Asia markets are in positive territory this morning, with the Nikkei 225 up by 1% and the Hang Seng index 0.2% higher.
