London pre-open: Stocks to edge up amid fragile ceasefire

(Sharecast News) - London stocks were set to edge higher at the open on Thursday as investors continued to mull events in the Middle East and a two-week ceasefire that's already beginning to break down.

The FTSE 100 was called to open around 0.5% higher.

Danske Bank noted that the truce has failed to completely halt fighting across the region.

"Israel launched heavy strikes on Lebanon, while Hezbollah retaliated with rocket fire into northern Israel," it said.

"Iran targeted Gulf neighbours' critical oil and power infrastructure, adding to the volatility. Confusion over the terms of the ceasefire has emerged, with Iran believing it included Lebanon, while the US and Israel maintain it does not. The oil market has reacted with relative calm, suggesting that reported damages may be manageable for now. That said, Asian markets turned more cautious on Thursday, with Japan's Nikkei flat and South Korea's Kospi down 0.4% after sharp gains the previous day.

"Brent futures also edged up slightly to USD 97/bbl. The Strait of Hormuz remains blocked, though Iran has indicated it could reopen later this week subject to further agreements. Markets are closely watching for signs of increased traffic through the strait in the coming days."

In corporate news, British American Tobacco said it has appointed Dragos Constantinescu as chief financial officer with effect from 1 September.

He is currently serving as chief executive of Asahi Europe & International, having been with Asahi Breweries since 2019.

During his time at Asahi Breweries, Constantinescu has also held a number of other senior leadership roles across Europe including managing director, Czech, Slovakia, Germany & Austria and managing director, Romania & Hungary.

Prior to this, he spent 16 years at BAT, where he held senior finance and general management roles.

Metlen Energy and Metals posted a 30% fall in core earnings due to project cost overruns and delays.

The London and Athens listed company last month delayed publication of the numbers by nine days on the request of its auditors, sparking a fall in its share price.

Earnings came in at �753m, although Metlen added that on an adjusted basis they would have exceeded �1bn without the project issues and the decision to not monetise some legal claims it had outstanding.

Investment manager Foresight Group said that both assets and funds under management had increased in the year ended 31 March amid "another period of profitable and resilient growth".

Foresight said assets under management had risen 6% to �14bn, while funds under management grew 4% to �10.0bn.