London midday: Stocks fall amid fragile ceasefire

(Sharecast News) - London stocks had fallen into the red by midday on Thursday, while oil prices ticked up amid uncertainty over the US-Iran ceasefire, which is already breaking down.

The FTSE 100 was down 0.4% at 10,571.75. Brent crude was 4% higher at $98.53 a barrel, while West Texas Intermediate was up 5.3% at $99.43.

The mood was decidedly more wary following the previous day's relief rally as Iran said the ceasefire had already been violated by Israel following its worst attack on Lebanon since the start of the conflict.

Investors were also digesting reports that Iran has mined the vital Strait of Hormuz. According to charts published on Tehran-linked social media accounts, it has placed mines in a large area at the centre of the waterway.

Susannah Streeter, chief investment strategist at Wealth Club, said: "While overall there is still hope that the truce with Iran will hold, it's becoming clear just how complex achieving a longer-lasting deal in the Middle East will be. The US may have ceased attacks on Iran, but Israel has continued to strike Lebanon, prompting accusations from Tehran that this violates the terms of the ceasefire.

"That means, right now, that the Strait of Hormuz, the chokepoint for global energy supplies, remains largely obstructed, with oil tanker traffic suspended once again after Israel's renegade action. A delegation led by US Vice President JD Vance is heading to Iran this weekend to try and recover the situation and reopen the Strait to tankers.

"Even if shipments resume, the risks won't disappear overnight. Tankers may be forced to navigate mined waters and a heightened military presence, all of which will keep insurance premiums high and freight costs elevated."

On home shores, industry research showed the housing market faltered in March as the Iran war weighed heavily on sentiment.

According to the Royal Institution of Chartered Surveyors' latest residential market survey, both buyer enquiries and agreed sales fell sharply last month, while house prices tracked lower.

The new buyer enquiries balance lost 10 points to -39, the weakest since August 2023, with agreed sales tumbling to -34 from -13 in February. The house price balance came in at -23, compared to -14 a month previously.

Respondents flagged rising borrowing costs and a spike in geopolitical uncertainty, with conditions forecast to remain difficult. The short-term sales expectations balance plunged to -33 from -4 a month ago.

A net balance is the proportion of respondents reporting a rise minus those reporting a fall.

Tarrant Parsons, head of market research and analysis at Rics, said: "The mood across the UK housing market has shifted markedly over the past couple of months. What had been a cautiously improving picture for activity has been knocked off course by the wider macro fallout from the Middle East conflict, as the renewed deterioration in the mortgage rate outlook has proved particularly challenging."

In equity markets, Standard Life, Reckitt Benckiser, Croda and Lloyds Banking all fell as they traded without entitlement to the dividend.

British American Tobacco lost ground as it announced the appointment of Dragos Constantinescu as chief financial officer with effect from 1 September. He is currently serving as chief executive of Asahi Europe & International, having been with Asahi Breweries since 2019. Constantinescu also spent 16 years at BAT, where he held senior finance and general management roles.

Metlen Energy & Metals reversed earlier gains even as it posting better-than-expected annual earnings despite project cost overruns and delays.

On the upside, BP and Shell gushed higher as oil prices picked up again.

DCC rallied after an upgrade to 'outperform' from 'neutral' by BNP Paribas, while Wickes was lifted by an initiation at 'buy' by Berenberg.

Market Movers

FTSE 100 (UKX) 10,571.75 -0.35%

FTSE 250 (MCX) 22,192.79 -1.08%

techMARK (TASX) 5,856.88 -0.60%

FTSE 100 - Risers

BP (BP.) 575.50p 2.36%

DCC (CDI) (DCC) 5,075.00p 1.81%

London Stock Exchange Group (LSEG) 9,124.00p 1.76%

Severn Trent (SVT) 3,235.00p 1.35%

United Utilities Group (UU.) 1,383.00p 1.32%

Diploma (DPLM) 6,585.00p 1.23%

IG Group Holdings (IGG) 1,458.00p 1.11%

Vodafone Group (VOD) 118.90p 1.06%

SSE (SSE) 2,735.50p 1.05%

National Grid (NG.) 1,343.60p 0.86%

FTSE 100 - Fallers

Standard Life (SDLF) 704.00p -3.98%

Fresnillo (FRES) 3,500.00p -3.59%

Convatec Group (CTEC) 219.00p -3.11%

Reckitt Benckiser Group (RKT) 5,184.00p -2.99%

Croda International (CRDA) 2,915.00p -2.90%

Entain (ENT) 568.60p -2.70%

Compass Group 11 (CPG) 28.52p -2.42%

Lloyds Banking Group (LLOY) 99.97p -2.10%

Standard Chartered (STAN) 1,693.00p -1.92%

Barratt Redrow (BTRW) 262.80p -1.79%

FTSE 250 - Risers

Diversified Energy Company (DI) (DEC) 1,246.00p 4.01%

Energean (ENOG) 859.50p 3.43%

Ithaca Energy (ITH) 249.50p 3.18%

Wickes Group (WIX) 225.00p 1.81%

W.A.G Payment Solutions (EWG) 116.60p 1.39%

CMC Markets (CMCX) 370.50p 1.23%

AJ Bell (AJB) 524.00p 1.06%

Pennon Group (PNN) 562.00p 0.90%

Pantheon Infrastructure (PINT) 113.80p 0.89%

GCP Infrastructure Investments Ltd (GCP) 76.80p 0.79%

FTSE 250 - Fallers

Man Group (EMG) 244.40p -7.37%

SDCL Efficiency Income Trust (SEIT) 42.40p -6.81%

Ceres Power Holdings (CWR) 321.80p -6.22%

Savills (SVS) 814.00p -4.91%

Oxford Nanopore Technologies (ONT) 108.90p -4.89%

ITV (ITV) 75.85p -4.65%

Jupiter Fund Management (JUP) 159.00p -4.34%

Foresight Group Holdings Limited NPV (FSG) 359.00p -4.01%

Dr. Martens (DOCS) 63.80p -3.92%

Close Brothers Group (CBG) 423.80p -3.86%