(Sharecast News) - London stocks rose in early trade on Monday despite escalating Middle East tensions, as oil prices eased after US president Donald Trump declared an "energy ceasefire" between Russia and Ukraine.
At 0830 BST, the FTSE 100 was 0.5% firmer at 10,607.51, while Brent crude was down 0.5% at $104.24 a barrel and West Texas Intermediate was 0.7% lower at $91.23.
Stocks were higher even as Iran-backed Houthis claimed responsibility for another strike on Riyadh's international airport over the weekend.
Susannah Streeter, chief investment strategist at Wealth Club, said: "Trump's deal with Putin to import Russian diesel helped ease oil prices slightly, but it has failed to make a significant dent in the cost of crude, given the situation in the Middle East remains so tense. Brent crude had edged down to $103 a barrel but has begun rising again, lifting back above $104 in early trade on Monday. It remains more than 40% higher than before the conflict with Iran broke out. The devastating Houthi attacks on Riyadh airport demonstrate how complex the crisis has become, with the Iran-backed rebels increasingly audacious and destructive in their strikes on Saudi Arabia.
"The slight dip in prices does appears to have delivered some respite on financial markets, with President Trump clearly anxious to bring down fuel costs ahead of the crucial mid-term elections. The FTSE 100 has started the week on the front foot, but there is still nervousness around. On Wall Street, stocks are set for a brisk start as earnings season gets underway and expectations remain high for robust numbers to feed through. Like the economy, this is set to be a K-shaped performance, with tech, energy and financial stocks likely to see bumper earnings roll in, while the consumer discretionary sector is likely to feel the pain of more cautious consumers."
US quarterly bank earnings will start rolling in on Tuesday, with JP Morgan, Wells Fargo, Citigroup and Goldman Sachs all slated to report.
In UK equity markets, recruiter Hays tumbled as it reported a 3% decline in first-quarter like-for-like net fees.
Pennon Group also slumped after Deutsche Bank downgraded the shares to 'hold' from 'buy' as it said the near-term buy case now looks increasingly difficult for several reasons.
Market Movers
FTSE 100 (UKX) 10,607.51 0.53%
FTSE 250 (MCX) 24,284.44 0.29%
techMARK (TASX) 6,142.52 0.24%
FTSE 100 - Risers
Standard Life (SDLF) 866.00p 2.06%
HSBC Holdings (HSBA) 1,423.40p 1.99%
Lion Finance Group (BGEO) 12,560.00p 1.95%
Standard Chartered (STAN) 2,161.00p 1.89%
International Consolidated Airlines Group SA (CDI) (IAG) 421.50p 1.56%
SSE (SSE) 2,490.00p 1.51%
Barclays (BARC) 435.85p 1.38%
Metlen Energy & Metals (MTLN) 49.17p 1.37%
NATWEST GROUP (NWG) 650.80p 1.34%
Lloyds Banking Group (LLOY) 103.00p 1.33%
FTSE 100 - Fallers
Informa (INF) 874.60p -1.50%
WPP (WPP) 382.10p -0.98%
Vodafone Group (VOD) 117.05p -0.80%
InterContinental Hotels Group (IHG) 157.85p -0.75%
BP (BP.) 581.60p -0.72%
Ithaca Energy (ITH) 283.50p -0.63%
Kingfisher (KGF) 317.70p -0.59%
3i Group (III) 2,391.00p -0.54%
ICG (ICG) 1,805.00p -0.22%
Shell (SHEL) 3,786.50p -0.17%
FTSE 250 - Risers
Globaldata (DATA) 62.45p 5.31%
Dr. Martens (DOCS) 71.50p 5.15%
Breedon Group (BREE) 316.60p 4.77%
PPHE Hotel Group Ltd (PPH) 1,498.00p 4.32%
Cranswick (CWK) 5,180.00p 3.91%
Utilico Emerging Markets Ltd (DI) (UEM) 304.00p 2.70%
Foresight Environmental Infrastructure Limited (FGEN) 87.90p 2.57%
Avon Technologies (AVON) 2,370.00p 2.38%
Rathbones Group (RAT) 1,548.00p 2.34%
Coats Group (COA) 87.00p 2.23%
FTSE 250 - Fallers
Hays (HAS) 59.35p -5.91%
AEP Plantations (AEP) 187.00p -3.53%
Michael Page (PAGE) 204.20p -2.36%
Pantheon Infrastructure (PINT) 110.60p -2.12%
Oxford Instruments (OXIG) 2,900.00p -1.96%
Diversified Energy Company (DI) (DEC) 1,040.00p -1.89%
Pennon Group (PNN) 314.60p -1.66%
Auction Technology Group (ATG) 465.00p -1.65%
SDCL Efficiency Income Trust (SEIT) 32.80p -1.65%
Jupiter Fund Management (JUP) 175.20p -1.61%
58.04 (0.55%)
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