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Stock prices in London opened mixed on Monday as all eyes were on the US and Iran, with the latter proposing to end its chokehold on the Strait of Hormuz. The FTSE 100 index opened down 2.19 points, marginally lower, at 10,376.89. The FTSE 250 was up 40.17 points, 0.2%, at 22,624.89, and the AIM all-share was up 4.59 points, 0.6%, at 800.99. The Cboe UK 100 was down 0.1% at 1,033.56, the Cboe UK 250 was up 0.1% at 19,691.44, and the Cboe small companies was marginally higher at 18,090.89. Brent crude was quoted at $107.97 a barrel early Monday, higher than $105.78 late Friday. According to an Axios report, Iran has proposed reopening the Strait of Hormuz and ending hostilities, with the plan including a postponement of nuclear negotiations. US President Donald Trump cancelled a planned trip by US officials to Pakistan for talks on the Iran war, saying it would be wasting ‘too much time’. The developments come as Iran’s foreign minister, Abbas Araghchi, is in Russia for expected talks with President Vladimir Putin, after visiting Pakistan and Oman over the weekend as discussions over the Middle East conflict continue. Meanwhile, German Economy Minister Katherina Reiche and her UK counterpart Peter Kyle are to address the German-British Economic Forum in Berlin on Monday, aimed at boosting post-Brexit ties. The economic summit builds on the Kensington Agreement signed by both countries in July 2025, which established a framework for gradually deepening cooperation in defence, security, the economy, health and culture. Monday’s talks are expected to outline the next steps in rapprochement between London and Berlin, more than six years after Britain left the EU. Despite the progress made so far, experts argue there is still a long way to go. The German Chamber of Commerce & Industry describes the partner countries UK and Germany as ‘friends with certain benefits.’ It is a busy week for both central banks and corporate earnings, and early trading suggested a degree of caution as markets await fresh catalysts. The Federal Reserve, European Central Bank, Bank of Japan, Bank of Canada and the Bank of England are all due to announce policy decisions this week, with policymakers likely to address the potential inflationary impact of the war in Iran and the closure of the Straight of Hormuz. In European equities on Monday, the CAC 40 in Paris was up 0.2%, while the DAX 40 in Frankfurt was up 0.3%. Data showed German consumer confidence for May deteriorated more than expected amid the Iran war. The GfK consumer climate indicator fell to minus 33.3 points from minus 28.1 in April, revised down from minus 28.0, and below the FXStreet-cited consensus of minus 29.5. Rolf Burkl, head of consumer climate at NIM said: ‘This is the lowest level since February 2023. Income expectations are literally collapsing because of rising inflation. And in this context, people also currently believe that the timing for major purchases is less favorable.’ The pound was quoted at $1.3540 early Monday, higher than $1.3497 at the London equities close on Friday. Against the euro, sterling rose to €1.1540 from €1.1532 a day prior. The euro traded at $1.1736 early Monday, higher than $1.1703 late Friday. Against the yen, the dollar was quoted at JP¥159.24 versus JP¥159.55. On the FTSE 100, Sainsbury was among the biggest losers, down 3.0%, after broker downgrades. Citigroup cut Sainsbury to ’neutral’ from ’buy’ and reduced its price target to 335 pence from 377 pence, while Goldman Sachs cut the stock to ’sell’ from ’buy’ and lowered its price target to 335 pence from 390 pence. On the FTSE 250, Ceres Power was the top performer, up 6.1%. Molten Ventures followed, up 3.9%, after the investment firm said the value of its portfolio rose, supported by strong performances from holdings including fintech Revolut and defence satellites company ICEYE. Harworth Group rose 2.1% after saying the local planning committee in Leeds, England, passed a resolution to approve a planning application from Harworth and a Microsoft Corp subsidiary at Skelton Grange. The Rotherham, South Yorkshire-based land regenerator said the application by MSFT MCIO Ltd was for a data centre campus with associated infrastructure and outline planning permission for a warehouse building. Among smaller caps, Headlam rose 7.5% after the flooring firm said shareholder First Seagull has requisitioned a meeting to remove the company‘s chair and two board members. PensionBee shares fell 1.7% as the London-based pension investment company reported reaching a ‘milestone’ £8 billion in assets under administration. In Asia on Monday, the Nikkei 225 index in Tokyo eneded up 1.4%. In China, the Shanghai Composite closed up 0.2%, while the Hang Seng index in Hong Kong closed down 0.2%. The S&P/ASX 200 in Sydney closed down 0.2% In Asia on Monday, the Nikkei 225 index in Tokyo ended up 1.4%. In China, the Shanghai Composite closed up 0.2%, while the Hang Seng index in Hong Kong closed down 0.2%. The S&P/ASX 200 in Sydney closed down 0.2%. In the US on Friday, Wall Street ended mixed, with the Dow Jones Industrial Average down 0.2%, the S&P 500 up 0.8% and the Nasdaq Composite up 1.6%. The yield on the US 10-year Treasury was quoted at 4.32%, unchanged from Friday. The yield on the US 30-year Treasury was quoted at 4.93%, widening from 4.92%. Gold was quoted at $4,714.49 an ounce early Monday, lower than $4,718.34 on Friday. Still to come on Monday’s economic calendar is the US Dallas Fed manufacturing index. Copyright 2026 Alliance News Ltd. All Rights Reserved.
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