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Stock prices in London were mostly lower at Monday midday as the conflict between the US and Iran flared up again, with the price of Brent oil higher while the gold price declined. The FTSE 100 index was down 17.13 points, 0.2%, at 10,392.63. The FTSE 250 was down 10.01 points, marginally lower, at 23,415.76, and the AIM all-share was up 0.32 points, marginally higher at XX. The Cboe UK 100 was down 0.2% at 1,033.01, the Cboe UK 250 was down 0.6% at 20,175.84, and the Cboe small companies was up 0.3% at 18,842.11. In European equities on Monday, the CAC 40 in Paris was up 0.2%, while the DAX 40 in Frankfurt was up 0.4%. The US carried out what it described as ‘self-defense’ strikes in Iran over the weekend, as President Donald Trump reportedly sent back proposed amendments to a deal aimed at extending the existing ceasefire and reopening the Strait of Hormuz. US Central Command said the strikes targeted Iranian radar and command-and-control sites in response to what it called ‘aggressive Iranian actions’, including the reported downing of a US MQ-1 drone operating over international waters. ‘US fighter aircraft swiftly responded by eliminating Iranian air defenses, a ground control station, and two one-way attack drones that posed clear threats to ships transiting regional waters,’ Central Command said. Meanwhile, Iran’s Islamic Revolutionary Guard Corps said it had struck a US air base used to launch an attack on a telecommunications tower on Iran’s Sirik Island, according to statements carried by Iranian state-run media. Brent oil was quoted at $93.97 a barrel at midday in London on Monday, up from $91.62 late Friday. Back in the UK, fresh survey data offered some support. S&P Global said UK manufacturing activity expanded at its fastest pace in four years in May, though firms continued to face mounting cost pressures and supply chain disruptions linked to conflict in the Middle East. The S&P Global UK manufacturing purchasing managers’ index rose to 53.9 points in May from 53.7 in April, reaching its highest level since 2022 and remaining comfortably above the 50-point threshold that signals growth. The reading was also above the flash estimate of 53.7 published on May 21. The PMI figure came above the flash reading of 53.7 points published on May 21. In currency markets, sterling was quoted at $1.3465 midday Monday, down from $1.3479 on Friday. Against the euro, sterling rose to €1.1558 from €1.1543. The euro stood at $1.1648, down from $1.1680. Against the yen, the dollar was trading at JP¥159.44, compared to JP¥159.15. Shares in oil majors Shell and BP pared earlier gains and were up 1.2% and 0.8% respectively, after Sky News reported that Chancellor Rachel Reeves has called in oil executives to discuss a tax loophole. Meanwhile, BP reported the start of nonassociated gas production at the Azeri-Chirag-Gunashli field in the Azerbaijan sector of the Caspian Sea. ‘This marks the first-ever commercial gas production operations on ACG, one of the world’s largest oil-producing fields,’ BP said. The London-based fuel major operates the ACG field. Entain topped the FTSE 100, up 3.6%. The index was dragged lower by defence and aerospace names, with BAE Systems down 2.9%, Babcock off 2.8% and Rolls-Royce lower by 1.6%. More pronounced moves were seen in the FTSE 250. Bluefield Solar Income Fund surged 16% after agreeing to a £548 million cash offer from Drax. easyJet jumped 10% as it responded to what it described as a ‘highly opportunistic’ approach from Castlelake, while Applied Nutrition rose 8.0% after lifting its sales guidance and expanding its US manufacturing footprint. At the other end of the index, ME Group International plunged 27% after saying trading softened in April. Pan African Resources fell 11% after reporting disappointing annual production. Among smaller caps, GSTechnologies leapt 29% after winning a Singapore court ruling in its Semnet legal proceedings. Elsewhere, Wise shares lost 10% amid regulatory scrutiny from Brussels. The company said it is ‘working with the Brussels prosecutor to respond to queries about our business’. It stressed that engagement with authorities is a routine part of operating in a highly regulated sector and is not indicative of non-compliance or wrongdoing. Wise Europe is established in Belgium, meaning law enforcement requests in the European Economic Area are redirected to Brussels. The company said enquiries from the Belgian prosecutor’s office remain incomplete and no specific findings have been shared. Across continental Europe, there was also a flurry of manufacturing PMI releases. In Germany, the S&P Global manufacturing PMI slipped to 50.1 points in May from 51.4 in April, remaining above the 50-point no-change mark but signalling a slowdown in growth. The final reading was stronger than the flash estimate of 49.9, which would have indicated contraction. In France, manufacturing activity fell into contraction territory, with the Hamburg Commercial Bank PMI at 49.7 points in May, down from 52.8 in April. However, the final figure was better than the 48.9 flash reading. For the eurozone as a whole, manufacturing growth slowed but outperformed expectations. The PMI eased to 51.6 points from 52.2 in April, beating the flash estimate of 51.4. The output index dropped to a four-month low of 51.3 but also came in above its flash reading. Separately, Eurostat said the eurozone unemployment rate remained unchanged at 6.3% in April. March’s rate was revised up to 6.3% from 6.2%. The April figure was slightly above expectations of 6.2%. Stocks in New York were called higher. The Dow Jones Industrial Average was called up 0.5%, the S&P 500 index up 0.3%, and the Nasdaq Composite also up 0.3%. Later in the day, investors will watch US manufacturing PMI data, where the flash reading stood at 55.3 in May versus 54.5 in April. The ISM manufacturing PMI for May follows, with consensus expecting a reading of 52.6, compared to 52.7 in April. The yield on the US 10-year Treasury was quoted at 4.47%, unchanged from Friday. The yield on the US 30-year Treasury was quoted at 5.00%, widening from 4.97%. Gold was quoted at $4,509.10 an ounce, down from $4,584.74. Still to come on Monday’s economic calendar are Canada’s manufacturing PMI and the US manufacturing PMI and ISM manufacturing PMI. Copyright 2026 Alliance News Ltd. All Rights Reserved.
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