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Stocks opened lower on Monday, with higher oil prices lifting BP on the FTSE 100, after Iran and the US both said they have fired on military targets. The FTSE 100 index opened down 10.93 points, 0.1%, at 10,486.80. The FTSE 250 was down 74.12 points, 0.3%, at 23,297.29, and the AIM all-share was down 1.19 points, 0.2%, at 762.63. The Cboe UK 100 was down 0.1% at 1,040.04, the Cboe UK 250 was down 0.1% at 20,030.29, and the Cboe small companies was up 0.1% at 18,466.68. In European equities on Monday, the CAC 40 in Paris was down 0.3%, while the DAX 40 in Frankfurt was down 0.1%. Geopolitical tensions remained elevated after the US said it had struck ‘dozens’ of Iranian military targets overnight in retaliation for attacks on commercial vessels transiting the Strait of Hormuz. US Central Command said it targeted air defence systems, coastal radar sites, missile and drone capabilities, and small boats using aircraft, naval vessels and drones, including ‘one-way attack sea drones for the first time’. ‘The Strait of Hormuz is a vital maritime corridor for global trade. Iran does not control it,’ the US military said. Iran responded by saying it had targeted US military bases in Jordan, Bahrain and Kuwait, as well as radar installations in Oman. The latest escalation follows comments from US President Donald Trump last week declaring the US-Iran ceasefire ‘over’ and describing Iran’s leadership as ‘scum’. Iran subsequently said it would no longer abide by the memorandum of understanding signed with the US if Washington failed to uphold its commitments to end the war. ‘Each time that the other party has failed to meet its obligations, we did not uphold ours...We will continue to act in this manner,’ foreign ministry spokesman Esmaeil Baqaei told a press conference in Tehran. Oil prices climbed in response. Brent crude traded at $78.72 a barrel early Monday, up from $75.86 late Friday. The pound was quoted at $1.3391 early Monday, down from $1.3419 at the London equities close on Friday. Against the euro, sterling slipped to €1.1714 from €1.1737. The euro eased to $1.1424 from $1.1434, while the dollar strengthened to JP¥162.10 from JP¥161.49. Persimmon led the FTSE 100, rising 3.4%. BP added 2.5% as stronger oil prices supported the energy sector, while Computacenter climbed 2.3% after Stifel upgraded the stock to ’buy’ from ’hold’ and raised its price target to 5,235 pence from 3,584p. GSK gained 0.8% after saying its phase 2 Azur-1 trial met its primary endpoint, with Jemperli, or dostarlimab, delivering sustained complete clinical responses in patients with stage 2 or 3 dMMR/MSI-H locally advanced rectal cancer. Interim data showed a clinically meaningful proportion of patients remained free of detectable cancer for at least 12 months following treatment. GSK said it plans to submit the data to regulators, including the US Food & Drug Administration, under an accelerated review pathway. On the FTSE 250, ME Group International surged 13% despite reporting lower first-half profit. The photobooth and laundry machine operator posted revenue of £154.3 million for the six months to April 30, up slightly from £153.8 million a year earlier, while pretax profit slipped to £32.7 million from £34.0 million. The interim dividend was reduced to 3.60 pence per share from 3.85p. The company said it remains on track to deliver full-year pretax profit of between £69 million and £74 million, and continues to expect to meet revised full-year market expectations. PageGroup rose 9.4% after reporting a stronger second quarter. Gross profit edged down just 0.2% on a constant-currency basis to £197.6 million from £195.2 million, a marked improvement from the 4.9% decline recorded in the first quarter. The recruitment company said around half of its markets are now growing, led by Asia Pacific, the Americas and Southern Europe, while trading remains challenging but stable in France, Northern Europe and the UK. Gross profit per fee earner rose 5%, fee earner headcount fell 1.6% to 4,914 during the quarter, and net debt remained around £7 million. PageGroup maintained full-year operating profit guidance of £28 million, in line with market expectations. Oxford Nanopore Technologies fell 14% after saying first-half trading was below management expectations. The company still expects to achieve adjusted Ebitda breakeven in 2027 and maintained guidance for constant-currency revenue growth of 21% to 25% this year. However, first-half revenue in China fell 16% and Middle East revenue dropped 14%. Broker Berenberg cut its price target to 220 pence from 230p, maintaining its ’buy’ recommendation. Plus500 shed 13% despite reporting a record first-half performance. The Haifa-based online trading platform said revenue rose 12% to $462.9 million from $415.1 million, while Ebitda increased 1% to $187.5 million from $185.1 million, driven by record customer income and continued growth across its OTC and non-OTC businesses. Plus500 also highlighted its expansion in US prediction markets, growth in Canada and enhancements to its Japanese offering. Among smaller caps, DeFi Development jumped 27%, while Ixico fell 14% after saying that two programmes have been discontinued, reducing its order book by around £1.5 million over the next two years. In Asia on Monday, the Nikkei 225 index in Tokyo closed down 1.9%. In China, the Shanghai Composite ended 2.1% lower, while the Hang Seng index in Hong Kong closed 0.1% higher. The S&P/ASX 200 in Sydney closed marginally higher. In the US on Friday, Wall Street ended higher, with the Dow Jones Industrial Average up 0.3%, the S&P 500 up 0.4% and the Nasdaq Composite up 0.3%. The yield on the US 10-year Treasury was quoted at 4.58%, widening from 4.56%. The yield on the US 30-year Treasury was quoted at 5.08%, widening from 5.06%. Back in the UK, Heathrow said more passengers travelled to North America in June, although this was not enough to offset the impact of continued disruption in the Middle East. Overall passenger numbers fell 1.8% year-on-year to 7.2 million. North American traffic rose 1.2%, helped by travel linked to the World Cup, while Asia-Pacific was the fastest-growing region, with both passenger and cargo volumes increasing. Heathrow said Middle East passenger traffic declined 26% during the month. Gold was quoted at $4,059.90 an ounce early Monday, down from $4,101.39 on Friday. On Monday’s economic calendar, attention turns to the US monthly budget statement. Copyright 2026 Alliance News Ltd. All Rights Reserved.
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