17th Jun 2025 07:48
(Alliance News) - Stocks in London were called to open higher on Tuesday as the Israel-Iran conflict continues, with the US reportedly reinforcing its military presence in the Middle East region.
"Supply [of oil] is rising, OPEC is relaxing its restrictions, demand remains sluggish, and geopolitical tensions are mounting," Swissquote's Ipek Ozkardeskaya commented. "This leaves the market at a crossroads...Which way will it break? That's unclear.
"But history tells us this: when oil markets feel safest, they're often sitting on the edge of a major turn...And [a] higher oil price is bad for global inflation, it rises price pressures and forces the central banks to hike interest rates. Higher borrowing costs weigh on growth prospects and equity valuations. So the level of uncertainty in the market and actual risk appetite barely match."
In corporate news, Ashtead Group reported a decrease in pretax profit and revenue, but increased its full-year dividend.
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 47.7 points, 0.5%, at 8,827.52
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Hang Seng: down 0.4% at 23,971.45
Nikkei 225: up 0.5% at 38,484.61
S&P/ASX 200: down 0.1% at 8,537.00
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DJIA: closed up 317.30 points, 0.8%, at 42,515.09
S&P 500: closed up 0.9% at 6,033.11
Nasdaq Composite: closed up 1.5% at 19,701.21
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US 10-year Treasury yield: 4.44% (4.43%)
US 30-year Treasury yield: 4.96% (4.92%)
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EUR: lower at USD1.1556 (USD1.1591)
GBP: lower at USD1.3564 (USD1.3594)
USD: higher at JPY144.78 (JPY144.09)
GOLD: lower at USD3,389.59 per ounce (USD3,403.81)
OIL (Brent): higher at USD73.52 a barrel (USD72.79)
(changes since previous London equities close)
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ECONOMICS
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Tuesday's key economic events still to come:
11:00 CEST eurozone ZEW economic sentiment survey
11:00 CEST Germany ZEW economic sentiment survey
11:00 BST Ireland trade balance
13:30 BST US retail sales
13:30 BST US export and import prices
13:55 BST US Redbook index
14:15 BST US industrial production
19:00 BST US FOMC meetings begin
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US President Donald Trump has warned "everyone should evacuate Tehran" as it was announced he would be departing the G7 leaders' summit early due to the situation in the Middle East. The conflict between Israel and Iran has been top of the agenda at the summit of wealthy democracies, taking place in Canada. Trump claimed his early departure from the G7 summit in Canada on Monday had "nothing to do" with working on a ceasefire between Israel and Iran. "Publicity seeking President Emmanuel Macron, of France, mistakenly said that I left the G7 Summit, in Canada, to go back to DC to work on a 'cease fire' between Israel and Iran," Trump wrote on his Truth Social platform. "Wrong! He has no idea why I am now on my way to Washington, but it certainly has nothing to do with a Cease Fire. Much bigger than that. Whether purposely or not, Emmanuel always gets it wrong. Stay Tuned!"
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The UK-US trade deal has been signed and is "done", Trump said as he met with the UK prime minister at the G7 summit. Starmer said the completed deal "implements on car tariffs and aerospace", and described the agreement as a "sign of strength" between the two countries. However, there was a signal from the US president that agreement about tariffs on UK steel exports to the US could take longer to finalise. "We're gonna let you have that information in little while," Trump said when asked by reporters about steel tariffs. The deal will grant British carmakers a reprieve by the end of June as levies drop from 25% to 10%, while the aerospace sector will face no import taxes. But tariffs for the steel industry, which is of key economic importance to the UK, will stand at 25% for now rather than falling to zero as originally agreed. This is less than the US global rate of 50% for steel and aluminium. Asked whether Britain would be shielded from future tariffs, Trump said the UK was protected "because I like them".
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A third of UK business owners plan to cut more jobs after being hit by higher national insurance contributions in April, according to new research. Many companies have also suggested they will cut back hours, freeze pay and hike prices in order to help cover increased tax payments. S&W's business owners sentiment survey revealed around 20% of those quizzed said they have already reduced their staff numbers as a "direct result" of the NIC changes which came into effect in April. Firms said they were also looking to a series of other measures in order to offset the jump in their operating costs. The survey of 500 UK business owners with turnovers of GBP5 million upwards also showed 46% of those surveyed said they were planning further price increases as a result. Meanwhile, 35% of business owners said they planned to reduce staff hours and 29% said they were looking at freezing pay.
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BROKER RATING CHANGES
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RBC cuts Bunzl to 'sector perform' (outperform) - price target 2,350 (2,600) pence
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JPMorgan raises Ninety One to 'neutral' (underweight) - price target 178 (132) pence
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Jefferies raises Smurfit WestRock to 'buy' (hold) - price target 55 (44) USD
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COMPANIES - FTSE 100
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Ashtead Group reported a 5% decrease in pretax profit for the year ended April 30, to USD2.00 billion from USD2.11 billion the year before. Revenue decreased 4% to USD10.79 billion, while fourth-quarter revenue decreased 4% on-year to USD2.53 billion but full-year rental and fourth-quarter revenue rose 4% and 1% respectively. Ashtead declared a 72 US cents final dividend, slashed by 19% from 89.25 cents. However, the full-year total dividend rose 2.9% to 108.0 cents per share from 105.0 cents. Looking ahead, Ashtead said it is eyeing between 0% and 4% rental revenue growth for the current financial year, and USD2.0 billion to USD2.3 billion in free cash flow. Also, it said it is on track to move its primary listing to the US in its first quarter.
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COMPANIES - FTSE 250
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In a new trading update, Morgan Sindall announced that it expects group pretax profit to be "significantly ahead of previous expectations" as reported at its last update in May. Segmentally, Morgan Sindall expects Fit Out's profit "to significantly exceed" expectations due to continued "strong trading activity...providing increased visibility for the rest of the year". The same forecast applies to Construction, which also expects revenue to exceed prior targets with an operating margin in the middle of its 3.0% to 3.5% medium-term target range. All other divisions remain on track to meet the company's forecasts, Morgan Sindall said.
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OTHER COMPANIES
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Secure Trust Bank announced that Chief Executive Officer David McCreadie will retire after four years in the role and "almost six years on the board". It also announced the appointment of Ian Corfield as CEO designate, effective from Monday, June 23, and as CEO with effect from August 16. "In order to achieve a smooth transition of responsibilities, David will remain available to support the business until June 2026," Secure Trust said. Corfield was previously chief commercial officer of financial services provider NewDay Ltd from 2014 to 2023.
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Following the announcement that Ireland's government is selling its remaining stake in AIB, around 44 million shares or around 2.1% of AIB's share capital, AIB released a statement saying it "welcomes the announcement...which results in the group returning to full private ownership". AIB's Chief Executive Officer Colin Hunt commented: "Reaching this milestone is a significant day for the group. AIB profoundly regrets that the institution had to be rescued by the State almost two decades ago...Since then, our focus has been on rebuilding trust, repaying the State and continuing to support our customers, communities and the wider economy. The group has undergone significant transformation and through the implementation of our proven strategy, we are well-positioned to continue generating value for all our stakeholders over the medium-term. With our market-leading customer franchise, resilient revenues and a strong capital position, we remain confident in the strong fundamentals of our business...helping to build a more sustainable future for our customers while delivering sustainable returns for our shareholders."
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By Emma Curzon, Alliance News reporter
Comments and questions to [email protected]
Copyright 2025 Alliance News Ltd. All Rights Reserved.
Related Shares:
BunzlNinety OneSmurfit WestAshtead GroupMorgan Sindall GroupSecure TrustAib Group