1st Apr 2026 07:54
(Alliance News) - Stocks were called higher on Wednesday, as markets became more hopeful of a de-escalation in the Middle East.
"My sole function was to make sure that [Iran doesn't] have a nuclear weapon. They're not going to have a nuclear weapon. When we leave the [Strait of Hormuz] will automatically open," US President Donald Trump told the New York Post on Tuesday. Meanwhile, Iranian President Masoud Pezeshkian has said his country has the 'necessary will' to end the conflict, but stressed the need for guarantees that it will not restart.
More recently, Israel struck Iran's capital on Wednesday ahead of Trump's planned address to the American public on the month-long war he said could end within weeks. The White House said he would give "an important update on Iran" to the nation at 2100 EDT Wednesday, 0100 BST on Thursday.
Here is what you need to know before the London market open:
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MARKETS
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FTSE 100: called up 114.0 points, 1.1% at 10,290.45
GBP: higher at USD1.3261 (USD1.3191 at previous London equities close)
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BROKER RATINGS
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RBC raises Berkeley to 'sector perform' (underperform) - price target 3,900 pence
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Citigroup raises Babcock International to 'buy' (neutral) - price target 1,554 pence
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Berenberg cuts Future to 'hold' (buy) - price target 330 (970) pence
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COMPANIES - FTSE 100
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Berkeley Group reaffirms its expectation of delivering pretax profit of GBP450 million for the year ending April 30, with around GBP300 million of net cash. It says it saw a modest recovery in sales volumes in the first two months of 2026, but that "recent geopolitical events and the macroeconomic consequences, including reduced potential for further rate cuts," have reduced confidence in near-term market recovery. The housebuilder announces its 'Berkeley 2035' strategy, saying that it "does not believe it can make its required rate of return on investment in new land acquisitions...due to the continuous increase in the tax and regulatory burden on residential development," and now aims to add GBP2 billion of value to its existing holdings "through optimisation and bringing our pipeline sites through the planning process," saying it has made good progress in the last 12 months. It will target an operating margin within its historic range of 17.5% to 19.5%, shareholder returns of GBP564 million by September 30, 2030 (which it says it is "currently comfortably on target to meet"), and above GBP1.4 billion in pretax profit over the next four years, with "a return on capital employed in the core business of at least 15% as soon as possible".
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Babcock International announces a six-month bridging agreement arranged under its 'Future Maritime Support Programme' contract with the UK Ministry of Defence "to maintain continuity of our naval base and nuclear submarine fleet support services". This follows the completion of the five-year FMSP support contract on Tuesday, bridging to a new long-term agreement which Babcock says is in the latter stages of negotiation. It adds that a letter of intent from the MOD reinforces the commitment to a long-term strategic relationship between the MOD, the Royal Navy and Babcock.
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COMPANIES - FTSE 250
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JPMorgan American reports a net asset value total return of plus 4.6% for 2025, underperforming against plus 9.6% from the S&P 500 benchmark. Declares a final dividend of 8.75 pence, bringing the total to 11.5p, up 4.5% from 11.0p for 2024. NAV per share with debt at par is 1,149.8p at December 31, up from 1,109.9p one year prior. Chair Robert Talbot notes the Middle East conflict and the impact of US tariffs but says: "Yet, even against such a backdrop, US Equity Indices reached record highs in 2025, and despite recent events remain close to this towards the end of the first quarter. This resilience gives good cause for optimism about the prospects for US companies, and the market, over the coming year and beyond."
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OTHER COMPANIES
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Renew Holdings says that trading and net cash for its first half ended March 31 is anticipated to be in line with its expectations, noting that "overall demand and momentum for our water services remain ahead of expectations as we move into the second year of AMP8". The engineering services firm cites analyst consensus for the financial year ending September 30 as adjusted revenue of GBP1.19 billion, adjusted operating profit of GBP77.6 million, and pre-IFRS 16 net cash of GBP20.0 million. For financial 2025, Renew had reported revenue of GBP1.12 billion, adjusted operating profit of GBP72.1 million and pre-IFRS 16 net cash of GBP6.2 million. Its Rail performance "remains in line with our expectations" and Infrastructure trading "has remained resilient" throughout the period. "Underpinned by extensive government spending commitments and long-term framework positions, the group's order book continues to be at record levels, demonstrating our core capabilities and established presence in a diverse range of long-term, sustainable growth sectors. The group remains strongly positioned with a well balanced portfolio of businesses, providing us with confidence in delivering against our full year expectations," Renew says.
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By Emma Curzon, Alliance News reporter
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Related Shares:
Berkeley GroupBabcockJPMorgan AmericanRenew HoldingsFuture