London pre-open: Stocks set to rise as oil prices retreat

(Sharecast News) - Stocks were set to rise at the open on Monday, ahead of a key week for global interest rate decisions, as oil prices fell sharply after Iran and the US paused attacks following a fortnight of steadily escalating violence in the Middle East.

The FTSE 100 was called to open up 30 points. By 0700 BST, benchmark Brent crude - which had once again breached $100 a barrel earlier this month - had shed 5% at $91.67. West Texas Intermediate was also 5% lower, at $84.45.

The US military has not reported any strikes since Thursday, while the 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.

In macro news, this week will see the Federal Reserve, Bank of England and Bank of Japan meet to discuss interest rates. All three are expected to leave the cost of borrowing on hold but their comments about inflationary risks and the impact of the US-Iran war will be closely watched.

In corporate news, on Monday telecoms operator Vodafone 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.

Tritax Big Box Reit confirmed that it had secured planning consent for a 107Mw data centre development, following the conclusion of a six-week judicial review. Tritax called the project, which will be constructed at a 74-acre site near Slough in Berkshire, the "first major demonstration" of its data centre strategy. Once operational, the facility is expected to achieve a 9.3% yield on cost.

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."

Energy sales and distribution firm DCC Energy announced that Energy Capital Partners and KKR had agreed to acquire it in a cash deal worth up to 6,797.22p per share. DCC said the offer included a base payment of 6,525p, a 147.22p final dividend, and a potential 125p linked to a planned technology disposal, valuing the business at about �5.75bn and 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.