23rd Jun 2025 07:48
(Alliance News) - London's FTSE 100 is called to open lower at the start of the week, but looks set to avoid a deeper sell-off, in the wake of the US striking Iranian nuclear targets.
Oil and gold came off intraday highs of USD79.31 a barrel and USD3,373.54 an ounce, respectively, while Asian stocks traded somewhat resiliently.
Swissquote analyst Ipek Ozkardeskaya said there was a "fascinating calm after the US attack on Iran".
"Many remain optimistic that Iran will avoid a full-blown retaliation and regional chaos, to prevent its own oil facilities from becoming targets and to avoid a widening conflict that could hurt China – its biggest oil customer. So some think – and trade the idea – that the threat of disruption to oil trade will not materialize," the analyst said.
"Global equities will likely remain under pressure at the open – but judging by how oil prices reacted to the weekend news, the selloff could remain relatively soft compared with the heaviness of the headlines."
M&A was front-and-centre in early UK corporate news. Spectris agreed to a private equity offer, while Assura backed a new Primary Health bid, not longer after throwing its weight behind a consortium's offer. There was another planned investment trust combination announced, meanwhile.
Here is what you need to know at the London market open:
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MARKETS
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FTSE 100: called down 0.6% at 8,725.85
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Hang Seng: up 0.5% at 23,654.41
Nikkei 225: down 0.1% at 38,358.74
S&P/ASX 200: down 0.4% at 8,474.90
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DJIA: closed up 35.16 points, 0.1%, at 42,206.82
S&P 500: closed down 0.2% at 5,967.84
Nasdaq Composite: closed down 0.5% at 19,447.41
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US 10-year Treasury yield: 4.40% (4.40%)
US 30-year Treasury yield: 4.92% (4.91%)
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EUR: lower at USD1.1508 (USD1.1521)
GBP: lower at USD1.3433 (USD1.3467)
USD: higher at JPY147.32 (JPY145.89)
GOLD: lower at USD3,355.02 per ounce (USD3,366.36)
OIL (Brent): higher at USD78.04 a barrel (USD76.49)
(changes since previous London equities close)
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ECONOMICS
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Monday's key economic events still to come:
09:00 BST eurozone flash composite PMI
08:30 BST Germany flash composite PMI
11:00 BST Ireland wholesale prices
09:30 BST UK flash composite PMI
14:45 BST US flash composite PMI
15:00 BST US existing home sales
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For the first time in years, European stock markets have outpaced their US counterparts in the first half of 2025 - a shift analysts attribute largely to concerns over US President Donald Trump's trade policies and unpredictable decision-making. According to economists and investment managers, billions in international capital have flowed out of US markets and into Europe, reversing a long-standing trend that had seen the US dominate global investor interest. The biggest European winners of this shift are Germany, Spain and Italy, whose stock markets have all posted double-digit gains so far this year. Germany's leading stock exchange index, the DAX, has risen by around 16% since the beginning of the year, despite recent losses. In contrast, US stock markets recorded only modest increases of less than 2%. Ludovic Subran, chief investment officer at Allianz, which manages nearly EUR2.5 trillion in assets, noted that investor capital is increasingly flowing out of the US and into regions such as Europe and Japan. Vincenzo Vedda, global chief investment officer at Deutsche Bank's asset management arm DWS, described the shift as a clear reversal from late 2024, when many fund managers had heavily favoured US markets. That previous overweight position has now turned into a notable underweight, he said.
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UK Foreign Secretary David Lammy has reiterated the need for "regional stability" in the Middle East following talks with US officials, as Israel continued to strike Iranian targets on Monday. His remarks came after a meeting between US President Donald Trump and Prime Minister Keir Starmer, held in the wake of US airstrikes on three Iranian nuclear sites. Lammy also spoke with Secretary of State Marco Rubio. "Important discussion with @SecRubio this evening on the situation in the Middle East," Lammy wrote in a post on X. "We will continue to work with our allies to protect our people, secure regional stability and drive forward a diplomatic solution." On Sunday night, Downing Street said UK PM Keir Starmer and Trump agreed Tehran must not be allowed to develop a nuclear weapon and called for Iran to return to negotiations.
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In the hours after Trump's phone call with Starmer, he again posted on Truth Social, saying: "It's not politically correct to use the term, 'Regime Change,' but if the current Iranian Regime is unable to MAKE IRAN GREAT AGAIN, why wouldn't there be a Regime change??? MIGA!!!" The social media post marked a reversal from previous statements on regime change, including an earlier press conference from Defence Secretary Pete Hegseth, about the bombing on the three nuclear sites. Iran is yet to confirm how much damage was done in the US-led attack.
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BROKER RATING CHANGES
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JPMorgan places ConvaTec on 'positive catalyst watch'
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Jefferies starts Harworth with 'buy' - price target 210 pence
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COMPANIES - FTSE 100
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BP is considering naming former Centrica chief executive Sam Laidlaw as its next chair, Sky News reported on Saturday. Laidlaw is among the names being considered by the board of the oil company. Laidlaw had retired from the board of the British Gas owner at the end of 2014. Another name being considered is Ken MacKenzie, who left the post of chair at miner BHP Group in March. BP Chair Helge Lund will step down, likely in 2026, the firm announced in April. London-based BP at the time said it had initiated a succession process to select a new chair to replace Lund, who has held the post since 2019.
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COMPANIES - FTSE 250
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Spectris agreed to a roughly GBP4 billion buyout from private equity firm Advent International. Advent will pay GBP37.63 in cash for the provider of high-tech instruments, test equipment and software, an offer consideration that includes a 28 pence dividend. The bid values the entire issued and to be issued share capital of Spectris at around GBP3.8 billion. It implies an enterprise value of GBP4.4 billion. The offer is an 85% premium to the Spectris share price on June 6, the day before an approach from Advent was announced. "Advent's offer recognises the quality of Spectris, our talented people, and our strong growth prospects. In light of a strong set of intentions set out today, the board have confidence that Advent is committed to supporting Spectris with investment that will drive growth and accelerate delivery of our strategic objectives," Spectris Chief Executive Andrew Heath said. On June 13, Spectris announced it had rejected a bid approach from Kohlberg Kravis Roberts & Co. The rejection had occurred only days before it announcing the approach from Advent.
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Assura agreed to a sweetened takeover bid from Primary Health Properties, which the healthcare facilities-focused investor believes trumps a previously recommended offer from a private equity consortium. The latest bid for PHP values the entire issued and to be issued ordinary share capital of Assura at GBP1.79 billion. PHP will pay 12.5p in cash and 0.3865 of a new PHP share for each Assura share under the terms of the bid. It would value each Assura share at 55.0p, a 5.8% premium to the 50.42p cash bid from the KKR and Stonepeak Partners consortium. Assura Non-Executive Chair Ed Smith said: "Following recent engagement between PHP and Assura, PHP has today further increased the terms of its offer, and has also addressed some of the potential risks that Assura had previously raised. The Assura board has always been and will remain resolutely focused on carrying out its fiduciary duties in the interest of Assura shareholders and in this context has decided to recommend this increased offer from PHP."
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European Smaller Companies and European Assets Trust agreed to a tie-up, the latest in the investment trust sector. The deal will create a trust with net assets of around GBP780 million. Under the terms of the deal, shareholders in European Assets Trust will be entitled to receive new shares in European Smaller, or cash. The cash portion is limited to 15% of European Assets shares. The enlarged European Smaller will remain managed by Janus Henderson. European Smaller currently invests in smaller and medium-sized companies which are "quoted, domiciled, listed or have operations in Europe", excluding the UK. European Assets Trust also invests in small and medium-sized European companies. It is managed by Columbia Threadneedle. European Assets Chair Stuart Paterson said: "The board have considered a variety of options in order to address the performance issues of EAT and believes the proposed combination of EAT with ESCT will provide shareholders with access to a larger, more liquid, lower cost vehicle with a strong long-term performance track record. The strategy remains focussed on the attractive European smaller companies sector and ESCT's new dividend policy is intended to continue to provide EAT shareholders with an attractive yield. The board has consulted a number of EAT's largest shareholders who have indicated their support and believe the combination is very attractive for shareholders as a whole. We would like to thank Columbia Threadneedle for their professionalism and longstanding support they have provided to EAT and the board."
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OTHER COMPANIES
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Hostel operator Safestay hailed record annual revenue and reported a narrowed loss. Pretax loss in 2024 slimmed to GBP407,000 from GBP757,000 in 2023. Revenue improved 4.7% to GBP22.5 million from GBP21.5 million. Including discontinued operations, however, revenue in 2024 amounted to GBP23.0 million, a "record". "I am pleased to report a year of good strategic and operational progress with record revenues achieved despite the challenging macroeconomic environment. This performance was underpinned by a 10% increase in bed nights and a 4% increase in occupancy," Chair Larry Lipman said. "Whilst consumer confidence continues to remain under pressure, we remain confident in our highly relevant customer proposition. We have a clear strategy to capitalise on the significant growth opportunities in the international hostel market, including several promising prospects in our expansion pipeline."
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By Eric Cunha, Alliance News news editor
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Related Shares:
ConvaTecHarworth GpSafestayEuropean Assets TrustThe European Smaller Companies TrustAssuraSpectrisBPPrimary HealthCentrica