Market update: FTSE 100 in red as oil price rises, IAG down 2%
10:01 , Graeme EvansDonald Trump’s sudden exit from the G7 summit put markets on edge today as the FTSE 100 index fell back and oil prices resumed their ascent.
Amid the US president’s warning that “everyone should evacuate Tehran”, London’s top flight benchmark fell 0.4% or 36.93 points to 8838.29.
That reversed yesterday’s modest gains after it was reported that Iran is willing to resume nuclear talks with the US.
The price of Brent Crude this morning resumed its upward momentum, although the rise of 1% still left it $4 short of the $78 a barrel level seen on Friday.
BP and Shell benefited from the price rise as their shares lifted 2% or 6.5p to 389.2p and 1% or 26.5p to 2652p.
At the other end of the FTSE 100, the outlook for jet fuel costs and the geopolitical uncertainty meant British Airways owner IAG fell 2% or 7.7p to 319.6p.
Other fallers included Legal & General, which dropped 4p to 252.4p despite reiterating targets ahead of a City presentation on its asset management arm.
Plant hire business Ashtead was unchanged at 4382p after annual results showed record rental revenues but a 5% fall in bottom-line profit.
The FTSE 250 index dropped 25.17 points to 21,258.85, with construction services business Morgan Sindall the best performing stock.
It jumped 16% or 635p to 4475p after reporting that its performance is significantly ahead of guidance given at the start of May.
Ashtead profits fall ahead of US listing switch
09:27 , Graeme EvansSunbelt plant hire firm Ashtead today reported a dip in annual profit and revenues amid weaker demand for used construction gear in the US.
The FTSE 100 company said this was partly offset by higher rental revenues, although this growth also slowed amid pressure on the US construction sector.
Ashtead is due to shift its primary stock market listing to New York from the start of the year, while it also plans to change its name to Sunbelt.
Pre-tax profits slipped by 5% to two billion US dollars (£1.47 billion) for the year to 30 April.
FTSE 100 down 0.6%, Morgan Sindall up 15% in FTSE 250
08:27 , Graeme EvansEuropean markets are sharply lower amid the ongoing Iran-Israel conflict, with the FTSE 100 index down by 0.6% or 50.17 points at 8825.05.
Among the leading fallers in London, British Airways owner IAG reversed 3.5p to 323.8p and HSBC lost 7p to 868.6p.
US-focused plant hire business Ashtead dropped 65p to 4317p after posting annual results.
The FTSE 250 index is down 0.3% or 74.01 points at 21,210.01. Morgan Sindall rose 15% or 560p to 4400p after it said it was trading significantly ahead of previous expectations.
FTSE 250 construction firm upgrades guidance
07:44 , Graeme EvansConstruction services group Morgan Sindall today said its 2025 performance will be significantly ahead of the forecast it gave less than two months ago.
The upgrade follows strong activity levels in the company’s fit-out division, which trades under the Morgan Lovell and Overbury brands.
In the construction division, the operating margin is now expected to be in the middle of its medium-term target range of 3%-3.5% while revenues are also ahead of forecast.
The FTSE 250 group, which also owns the Lovell partnerships business, is due to report interim results on 29 July.
Today’s statement said: “Since its last trading update on 1 May, the group now anticipates that its full year results for 2025 will be significantly ahead of its previous expectations.”
Aviva deal for Direct Line nears completion
07:24 , Graeme EvansAviva today said its £3.7 billion takeover of Direct Line is expected to complete on 1 July.
Subject to a court hearing, share dealings in the enlarged company are due to begin at 8am on 3 July.
The companies announced on 23 December that they had reached an agreement on a cash and shares offer for FTSE 250-listed Direct Line.
Shareholders of the Churchill and Green Flag owner approved the deal on 10 March.
Following engagement with the Competition and Markets Authority, Aviva said it was confident of securing unconditional clearance by the phase 1 deadline on 10 July.
As a result, this means that all conditions relating to the receipt of regulatory and antitrust approvals have now been satisfied or waived.
FTSE 100 seen lower, oil price resumes rally
07:00 , Graeme EvansThe FTSE 100 index is seen lower while the oil price has risen in the wake of the latest developments in the Middle East.
Donald Trump warned “everyone should evacuate Tehran” as it was announced he would be departing the G7 leaders’ summit early.
IG Index futures point to the FTSE 100 falling 0.5% or 48 points, unwinding the top flight benchmark’s increase of 24.59 points yesterday.
Brent Crude is at $73.61 a barrel, an increase of 0.5% after falling to $70 at one point yesterday amid reports Iran is willing to resume nuclear talks with the US.
Asia markets have posted a mixed performance, with the Nikkei 225 up 0.5% and the Hang Seng index down by 0.5%.
