London open: FTSE nudges down ahead of new US sanctions on Iran

(Sharecast News) - London stocks nudged lower in early trade on Monday after the US said it would unveil the toughest ever sanctions on Iran and as investors eyed earnings from Nvidia and a hotly-anticipated speech by new Federal Reserve chair Kevin Warsh at the Jackson Hole Symposium this week.

At 0830 BST, the FTSE 100 was down 0.1% at 10,811.44, while Brent crude was 1.7% weaker at $92.81 a barrel and West Texas Intermediate was 2.1% lower at $85.21 after US Treasury Secretary Scott Bessent said the US will announce the toughest sanctions in history against Iran on Monday.

"At dawn begins an economic D-Day - the single greatest financial offensive ever marshaled against an adversary," Bessent said on X.

Richard Hunter, head of markets at Interactive Investor, said: "This week is set up to provide a stern test of investor mettle. An announcement is expected later from the US government on plans for a severe economic war on Iran, where sanctions have become the norm but other punitive measures are expected. Any retaliatory action from Iran could then put further pressure on the oil price, while also perhaps confirming that the US has decided to switch from military to economic force to achieve its aims.

"The remainder of the week then throws several potential volleys at investors. A consumer confidence survey on Tuesday will provide the latest forward indicator on what is a vital cog in the US economic wheel, while on Wednesday there will be a GDP release as well as the Federal Reserve's preferred measure of inflation, the Personal Consumption Expenditures index, will likely confirm that the headline rate remains well above the 2% target.

"After hours on the same day, Nvidia releases its latest numbers where another set of blockbuster earnings seem almost guaranteed, but where the rising wall of expectations could limit any positive reaction and in any event seem likely to lead to a volatile market reaction.

"The week is then rounded off with the Jackson Hole symposium, where comments from new Fed Chair Warsh will be scrutinised.

"With such a weight of concentration on the multitude of US events due this week, the UK opened as something of an investor sideshow. The FTSE100 once more hugged the flatline, with no discernible trends among an equilibrium of opposing forces as well as lighter volumes."

Corporate news was scarce as the summer lull well and truly kicked in ahead of the Bank Holiday weekend, but Shell was in focus following a report it has drawn interest from potential bidders, including ExxonMobil and LyondellBasell, for its US chemical assets. According to the Financial Times, the assets could fetch up to $8bn.

Elsewhere, GSK nudged lower despite saying that its experimental hepatitis B drug had received its first global approval in Japan, while `Jemperli has been granted priority review by the US Food and Drug administration as a potential treatment for rectal cancer.

Diploma gained after an upgrade to 'overweight' from 'neutral' at JPMorgan.

Market Movers

FTSE 100 (UKX) 10,811.44 -0.05%

FTSE 250 (MCX) 24,701.28 -0.07%

techMARK (TASX) 6,154.75 -0.22%

FTSE 100 - Risers

Antofagasta (ANTO) 3,970.00p 1.66%

Airtel Africa (AAF) 333.20p 1.65%

IG Group Holdings (IGG) 1,353.00p 1.50%

3i Group (III) 2,932.00p 1.49%

Halma (HLMA) 3,560.00p 1.42%

Abrdn (ABDN) 246.00p 1.40%

Diploma (DPLM) 7,285.00p 1.18%

Weir (WEIR) 2,828.00p 1.07%

Entain (ENT) 543.20p 1.04%

JD Sports Fashion (JD.) 85.34p 1.04%

FTSE 100 - Fallers

AstraZeneca (AZN) 12,118.00p -0.90%

Autotrader Group (AUTO) 542.20p -0.84%

Melrose Industries (MRO) 467.50p -0.78%

Informa (INF) 893.60p -0.78%

Experian (EXPN) 2,931.00p -0.74%

Kingfisher (KGF) 318.90p -0.65%

Scottish Mortgage Inv Trust (SMT) 1,455.00p -0.58%

BP (BP.) 546.20p -0.55%

GSK (GSK) 1,910.50p -0.50%

HSBC Holdings (HSBA) 1,510.80p -0.43%

FTSE 250 - Risers

Oxford Nanopore Technologies (ONT) 174.40p 3.00%

Diversified Energy Company (DI) (DEC) 1,098.00p 2.43%

Trainline (TRN) 201.40p 2.38%

Rank Group (RNK) 114.00p 2.33%

Neuberger Private Equity Partners Limited (NBPE) 1,498.00p 1.49%

Playtech (PTEC) 397.20p 1.33%

Globaldata (DATA) 85.30p 1.30%

Jupiter Fund Management (JUP) 163.80p 0.99%

Johnson Matthey (JMAT) 2,296.00p 0.97%

Pan African Resources (PAF) 137.10p 0.96%

FTSE 250 - Fallers

Baltic Classifieds Group (BCG) 201.00p -4.08%

Avon Technologies (AVON) 1,770.00p -2.96%

Kainos Group (KNOS) 1,260.00p -2.78%

SDCL Efficiency Income Trust (SEIT) 35.30p -1.94%

Templeton Emerging Markets Inv Trust (TEM) 314.50p -1.87%

Rightmove (RMV) 508.20p -1.82%

Fidelity China Special Situations (FCSS) 259.00p -1.71%

Oxford Biomedica (OXB) 518.00p -1.52%

Big Yellow Group (BYG) 887.50p -1.39%

VinaCapital Vietnam Opportunity Fund Ltd. (VOF) 434.00p -1.36%