London open: FTSE nudges up as Ithaca Energy, BT Group gain

(Sharecast News) - London stocks were just a smidgen higher in early trade Monday as optimism over last week's weaker-than-expected US non-farm payrolls report - which raised expectations the Federal Reserve will keep rates on hold at its meeting `this month - gave way to concerns about the energy crisis.

At 0840 BST, the FTSE 100 was just 0.1% firmer at 10,470.65. At the same time, Brent crude was down 0.6% at $101.62 a barrel and West Texas Intermediate was 1.2% lower at $89.98 after G7 leaders agreed to release 100m barrels of crude and diesel over the next four months and after the International Energy Agency said members have so far released around 325m barrels of oil from the 400m barrels pledged in March.

Susannah Streeter, chief investment strategist at Wealth Club, said: "The Footsie started on the front foot in early trade, but lost ground as worries about the repercussions of the energy crisis reverberate again. The Middle East remains mired in uncertainty, keeping crude costs elevated and piling pressure on companies and consumers around the world.

"Unrest in Spain and France underlines the difficult position governments are facing as they try to alleviate living costs while providing the essential services demanded by citizens. Mass protests in Spain over housing costs have led to fresh political instability, with a snap election now called, after parliament rejected emergency measures designed to ease the crisis. High energy bills have added to the pressure on households, highlighting how the cost of the energy shock can quickly spill over into wider political and social tensions."

Streeter said "this appears to be overshadowing earlier optimism triggered by Friday's softer US jobs report". She pointed out that while Brent crude has dipped back slightly it is still trading above $101 a barrel, more than 40% higher than before the conflict broke out.

"There's a feeling that the situation could have been worse by now, but much will depend on the security of energy supplies from the Middle East," she said. "The situation is still tense, with Iran backed Houthis attacking dozens of sites owned by Saudi Arabia's oil giant Aramco. Yemen has launched a major operation push back against the group, but its tentacles have spread far and wide across the region.

"The Strait of Hormuz remains a major flashpoint with the attack on another tanker on Sunday is keeping worries bubbling about the potential for further disruption to supplies, particularly if shipping companies become increasingly reluctant to risk sending vessels through the crucial chokepoint."

In equity markets, Ithaca Energy rallied after agreeing with Suncor to buy a portfolio of conventional offshore oil assets located in shallow waters off the East Coast of Newfoundland and Labrador, Canada, for up to $1.1bn.

BT Group gained after it bought TalkTalk out of administration on a debt-free basis.

BT estimated the total cash impact of the acquisition in FY27 at around £400m, comprising consideration, transaction and administration costs, working capital impacts as well as a trading loss of approximately £60m and non-receipt of circa £100m otherwise due to Openreach.

The company said it recognised the risk to the country, "and especially vulnerable customers and key public services, should the company collapse". As a result, it approached the directors of TalkTalk and offered to step in immediately, in the public interest, "to protect customers and critical national infrastructure".

Metlen Energy & Metals ticked higher after it signed a long-term commercial agreement with an unnamed Japanese chemical company for the future supply of gallium, representing up to 16% of total production from its facility in Greece, which is currently under construction.

National Grid was also in the black after saying it expects full-year earnings per share growth to come in slightly ahead of guidance for 13% to 15%.

Market Movers

FTSE 100 (UKX) 10,470.65 0.08%

FTSE 250 (MCX) 24,189.12 -0.02%

techMARK (TASX) 6,157.97 0.10%

FTSE 100 - Risers

Ithaca Energy (ITH) 281.60p 2.29%

BT Group (BT.A) 199.20p 1.40%

London Stock Exchange Group (LSEG) 8,174.00p 1.24%

Coca-Cola HBC AG (CDI) (CCH) 4,272.00p 1.13%

Metlen Energy & Metals (MTLN) 48.98p 1.01%

Anglo American (AAL) 4,124.00p 0.95%

National Grid (NG.) 1,154.00p 0.92%

Croda International (CRDA) 3,294.00p 0.92%

Airtel Africa (AAF) 311.00p 0.85%

Admiral Group (ADM) 3,614.00p 0.84%

FTSE 100 - Fallers

3i Group (III) 2,465.00p -3.37%

IG Group Holdings (IGG) 963.50p -2.02%

Whitbread (WTB) 2,395.00p -1.76%

International Consolidated Airlines Group SA (CDI) (IAG) 432.70p -1.70%

Halma (HLMA) 3,560.00p -0.89%

BAE Systems (BA.) 1,900.00p -0.88%

Balfour Beatty (BBY) 928.50p -0.59%

Investec (INVP) 600.00p -0.58%

Kingfisher (KGF) 326.20p -0.52%

GSK (GSK) 1,770.50p -0.51%

FTSE 250 - Risers

Diversified Energy Company (DI) (DEC) 1,050.00p 3.75%

AO World (AO.) 88.00p 3.40%

NCC Group (NCC) 149.80p 2.88%

Wetherspoon (J.D.) (JDW) 937.50p 2.79%

Partners Group Private Equity Limited. (EUR) (PEY) 7.12p 2.59%

Fidelity China Special Situations (FCSS) 253.50p 2.42%

Playtech (PTEC) 382.80p 2.30%

BlackRock World Mining Trust (BRWM) 948.00p 2.13%

Harbour Energy (HBR) 275.00p 2.08%

Entain (ENT) 419.40p 1.84%

FTSE 250 - Fallers

Oxford Nanopore Technologies (ONT) 213.60p -3.67%

Jupiter Fund Management (JUP) 163.20p -3.43%

Bytes Technology Group (BYIT) 446.80p -2.70%

Breedon Group (BREE) 306.00p -2.55%

Bloomsbury Publishing (BMY) 621.00p -2.51%

Wizz Air Holdings (WIZZ) 1,032.00p -1.90%

Hays (HAS) 63.20p -1.71%

Caledonia Investments (CLDN) 378.50p -1.69%

Pantheon International (PIN) 381.50p -1.68%

Oxford Biomedica (OXB) 532.00p -1.65%