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Stock prices in Europe opened sharply higher on Monday, while Union Jack Oil shares surged after it confirmed it received a takeover approach from Reabold Resources. The FTSE 100 index opened up 53.65 points, 0.5%, at 10,525.37. The FTSE 250 was up 251.75 points, 1.1%, at 23,577.46, and the AIM all-share was 16.90 points, 2.2%, at 804.23. The Cboe UK 100 was up 0.6% at 1,044.12, the Cboe UK 250 was up 0.9% at 20,270.72, and the Cboe small companies was down 0.2% at 18,718.52. In European equities on Monday, the CAC 40 in Paris was up 1.8%, while the DAX 40 in Frankfurt was up 1.5%. Investor sentiment was buoyed by news that the US and Iran had agreed an interim deal to reopen the Strait of Hormuz and begin 60 days of talks on Iran’s nuclear programme, one of the key sticking points in negotiations to end the conflict. Officials from both sides are due to meet in Switzerland this week to formally sign the agreement, suggesting some issues remain unresolved. Neither side has yet released the text of the accord. Before its effective closure, the Strait of Hormuz handled around a fifth of global oil supplies, and nearly 600 vessels remain stranded in the area awaiting departure. Brent oil was trading at $83.48 a barrel early Monday, down from $87.00 late Friday and well below the peaks of around $120 seen during the conflict. US President Donald Trump said the strait would reopen on Friday and announced the end of the US blockade of Iranian ports, writing on Truth Social: ‘Ships of the World, start your engines. Let the oil flow!’ The pound was quoted at $1.3432 early Monday, higher than $1.3422 at the London equities close on Friday. Against the euro, sterling fell to €1.1568 from €1.1587 a day prior. The euro traded at $1.1605 early Monday, higher than $1.1583 late Friday. Against the yen, the dollar was quoted at JP¥160.02, lower versus JP¥160.12. Alongside the geopolitical backdrop, attention in UK markets is focused on the Bank of England’s interest rate decision on Thursday and a series of key domestic data releases. The decline in oil prices has contributed to a further pullback in expectations for additional Bank of England tightening. UK consumer price inflation figures are due on Wednesday, while labour market data will be released on Thursday. On the FTSE 100, miners were among the strongest performers, tracking a rise in gold prices. Antofagasta climbed 6.7%, Fresnillo rose 6.0%, and Endeavour Mining added 5.9%. Gold was quoted at $4,322.20 an ounce early Monday, up from $4,219.28 on Friday. At the bottom of the blue-chip index, oil majors BP and Shell fell 4.5% apiece as lower crude prices weighed on the sector. Airline stocks benefited from the prospect of lower fuel costs and improved travel conditions. British Airways owner IAG gained 3.0%, while FTSE 250-listed Wizz Air and easyJet rose 7.8% and 2.0%, respectively. Frasers Group was down 0.6% after making a £166 million bid for Australian footwear retailer Accent Group. The Sports Direct, House of Fraser and Flannels owner already holds a 22.9% stake in Accent and is seeking to acquire the remaining shares at A$0.65 each in cash, valuing the deal at A$316 million, or around £166 million. Among smaller caps, Peel Hunt rose 1.9% after reporting what it described as ‘one of the best revenue performances in the history of the group’ for the financial year ended March 31, 2026. Revenue increased 57% to £143.5 million from £91.3 million, while the investment bank swung to a pretax profit of £21.1 million from a £3.5 million loss. Investment Banking revenue more than doubled to a record £67.1 million, driven by mergers and acquisitions activity. Execution Services revenue rose to £47.8 million and Research & Distribution revenue increased to £28.6 million. Peel Hunt proposed a final dividend of 4.9p per share, having paid no dividend a year earlier. Looking ahead, the company said markets remain supportive of high-quality transactions, although renewed inflationary pressures, uncertainty over interest rates and domestic political volatility continue to weigh on UK market confidence and deal activity. CEO Steven Fine said: ‘Investment Banking [achieved] its highest ever revenue. This is thanks to our exceptional people, growing recognition of our M&A advisory capability and the continued strength of our Execution Services business.’ Union Jack Oil shares surged 25%. The Bath, England-based onshore fuel producer in the UK and US confirmed a takeover approach from fellow AIM listing Reabold Resources. Under UK takeover rules, Reabold has until July 13 to announce a firm intention to make an offer or walk away, unless an extension is granted. Union Jack advised that its shareholders take no action. Separately, Rightmove reported that UK house prices posted their biggest June decline in 14 years. The property portal said the average asking price of a home coming to market fell 0.6% this month to £376,191. Prices declined across southern England and Wales, although more affordable northern regions, including the North East and Scotland, were proving more resilient. Compared with a year earlier, house prices were down 0.5%. The data had a mixed impact on housebuilders. Vistry fell 3.5%, also pressured after JPMorgan cut its rating to ’underweight’. In contrast, Barratt Redrow rose 3.7%, Persimmon gained 3.9%, Taylor Wimpey added 2.8% and Bellway climbed 3.4%. In Asia on Monday, the Nikkei 225 index in Tokyo surged 5.0% to a record high. In China, the Shanghai Composite ended 1.6% higher, while the Hang Seng index in Hong Kong gained 0.5%. The S&P/ASX 200 in Sydney closed up 1.3%. In the US on Friday, Wall Street ended higher, with the Dow Jones Industrial Average up 0.7%, the S&P 500 up 0.5% and the Nasdaq Composite up 0.3%. Still to come on Monday’s economic calendar, the eurozone publishes trade balance and industrial production figures, Canada releases manufacturing sales data, and in the US investors will monitor the New York Empire State manufacturing index and industrial production. Copyright 2026 Alliance News Ltd. All Rights Reserved.
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