London open: stocks tick higher as oil price falls

(Sharecast News) - London stocks edged higher in early trade on Monday, as investors welcomed a sharp fall in oil prices and a robust update from Vodafone.

As at 0830 BST, the FTSE 100 was up 0.39% at 10,777.94, and the FTSE 250 was ahead 0.58% at 23,940.26, while benchmark Brent crude - which had breached $100 a barrel last week - had shed nearly 7% at $90.43. West Texas Intermediate was 6% lower at $83.84.

Oil prices were responding to Iran and America pausing tit-for-tat attacks following a fortnight of steadily escalating violence in the Middle East. The US military has not reported any strikes since Thursday, while Iranian forces halted all attacks over the weekend. The de-escalation fuelled hopes that a long-term peace deal may yet be back on the table. Mike Waltz, the US ambassador to the United Nations, told media that the Donald Trump was pausing American attacks to allow for more time for diplomacy.

The fall in oil prices weighed on the FTSE 100's energy majors. BP fell 3% at 529.4p, while Shell shed 2% at 3,246.5p. But British Airways-owner International Consolidated Airlines Group sparked 2% at 44.7p. Fuel is one of the biggest costs faced by airlines.

Richard Hunter, head of markets at Interactive Investor, said: "Despite some inevitable weakness in the index heavyweights BP and Shell - which conversely caused IAG to bounce - there was broad appreciation for the larger names within the index with their stability and cash generation coming back into focus."

In corporate news, Vodafone rose 3% at 118p, after the telecoms operator said it expected full-year earnings to be at the upper end of guidance after a strong first quarter performance including a contribution from Safaricom, in which it now holds a 55% stake. Adjusted earnings before interest, taxes, depreciation, amortisation and leases rose 6.7% to �2.9bn. The company on Monday said it expected the annual figure to be at the top end of the �13 - 13.3bn revised guidance provided in May.

Energy sales and distribution firm DCC Energy announced that Energy Capital Partners and KKR had agreed to acquire it in a �5.75bn deal worth up to 6,797.22p per share. DCC said the cash offer included a base payment of 6,525p, a 147.22p final dividend, and a potential 125p linked to a planned technology disposal, marking a 24% premium to its undisturbed closing price. The FTSE 100-listed firm said the transaction was expected to complete in the first quarter of 2027. The stock was trading up 1% at 6,365p.

Tritax Big Box Reit was also higher, up 1% at 172.32p, after confirming it had secured planning consent for a 107Mw data centre development near Heathrow, following the conclusion of a six-week judicial review. Tritax called the project, which will be constructed on the 74-acre Slough Availability Zone, the "first major demonstration" of its data centre strategy. Once operational, the facility is expected to achieve a 9.3% yield on cost.

Away from the top flight, molten metal flow engineer Vesuvius said 2026 full-year trading profit was set to be ahead of the prior year as operational issues are being addressed and are expected to be resolved by the end of the year.

In a brief trading statement, the company said trading profit for the first half is expected to be around �74m. It said that since its update in May, there have been continued operational issues in the steel division. The Advanced Refractories segment is also experiencing a "challenging" trading environment, particularly in Europe.

"The operational issues, whilst temporary, are causing a greater impact than previously anticipated," it said. "They are being addressed and are expected to be resolved by the end of the year."

Market Movers

FTSE 100 (UKX) 10,778.83 0.40%

FTSE 250 (MCX) 23,943.36 0.60%

techMARK (TASX) 6,073.75 0.99%

FTSE 100 - Risers

JD Sports Fashion (JD.) 92.44p 3.98%

Relx plc (REL) 2,638.00p 2.88%

Vodafone Group (VOD) 117.50p 2.75%

Whitbread (WTB) 2,497.00p 2.63%

International Consolidated Airlines Group SA (CDI) (IAG) 445.20p 2.63%

Flutter Entertainment (DI) (FLTR) 7,758.00p 2.55%

Marks & Spencer Group (MKS) 389.20p 2.21%

Autotrader Group (AUTO) 499.70p 2.09%

InterContinental Hotels Group (IHG) 159.45p 1.92%

Airtel Africa (AAF) 339.60p 1.92%

FTSE 100 - Fallers

BP (BP.) 529.70p -3.41%

Glencore (GLEN) 526.50p -2.14%

Shell (SHEL) 3,247.00p -1.91%

Centrica (CNA) 160.90p -1.47%

SSE (SSE) 2,394.00p -1.20%

Imperial Brands (IMB) 2,796.00p -0.96%

Melrose Industries (MRO) 466.30p -0.94%

IMI (IMI) 3,024.00p -0.92%

National Grid (NG.) 1,229.00p -0.69%

Standard Life (SDLF) 911.50p -0.55%

FTSE 250 - Risers

FirstGroup (FGP) 189.60p 4.29%

Schroder Asian Total Return Investment Company (ATR) 684.00p 3.64%

Trainline (TRN) 227.40p 3.63%

Hochschild Mining (HOC) 457.40p 3.28%

Wizz Air Holdings (WIZZ) 1,070.00p 2.98%

Pan African Resources (PAF) 97.55p 2.85%

Trustpilot Group (TRST) 263.20p 2.73%

Close Brothers Group (CBG) 431.40p 2.71%

Raspberry PI Holdings (RPI) 727.00p 2.68%

Ocado Group (OCDO) 191.40p 2.62%

FTSE 250 - Fallers

Vesuvius (VSVS) 407.20p -9.96%

Harbour Energy (HBR) 242.60p -5.62%

Energean (ENOG) 790.00p -4.83%

Ithaca Energy (ITH) 246.60p -4.27%

SDCL Efficiency Income Trust (SEIT) 37.40p -2.35%

Fidelity China Special Situations (FCSS) 251.50p -2.14%

Dr. Martens (DOCS) 72.50p -1.76%

Diversified Energy Company (DI) (DEC) 978.00p -1.71%

Morgan Sindall Group (MGNS) 4,432.00p -1.60%

Pacific Horizon Inv Trust (PHI) 1,048.00p -1.50%