23rd Jun 2025 12:02
(Alliance News) - Stock prices in Europe were lower, with the FTSE 100 in London only marginally in the red, as US involvement in the Israel-Iran conflict kept markets on edge but failed to spark a sell-off.
The FTSE 100 index traded down just 2.15 points at 8,772.50. The FTSE 250 edged down 20.70 points, 0.1%, at 21,127.80, and the AIM All-Share was down only 0.14 of a point at 759.00.
The Cboe UK 100 was down slightly at 873.77, the Cboe UK 250 was 0.2% lower at 18,665.46, and the Cboe Small Companies was down 0.1% at 17,253.85.
In Frankfurt, the DAX 40 was down 0.3%. The CAC 40 in Paris was 0.4% lower.
Israel said it struck "regime targets" in the city, escalating tensions a day after US air strikes on Iran's nuclear facilities. Iran, in turn, fired missile barrages at Israel and vowed retaliation against the US, as both sides intensified attacks on the war's 11th day.
A barrel of Brent rose to USD77.73 early Monday afternoon, from USD76.49 at the time of the London equities close on Friday. Gold was largely flat at USD3,367.01 an ounce from USD3,366.36, but had traded as high as USD3,373.54 earlier on Monday. Brent also faded from intraday highs, having earlier bought USD79.31.
Analysts at Barclays commented: "Oil has spiked but the worst-case scenario – involving a blockage of the Strait of Hormuz – is a long way from being priced. That could push Brent past USD100/barrel."
Sterling fell to USD1.3379 midday Monday, from USD1.3467 at the time of the London equities close on Friday. The euro declined to USD1.1464 from USD1.1521. Against the yen, the dollar surged to JPY147.94 from JPY145.89.
Convera analyst George Vessey commented: "In the lead-up to the strikes, markets were pricing in diplomatic progress: the euro strengthened, the dollar softened, safe havens were muted, and oil dropped nearly 3% on Friday — signalling a partial return to the pre-conflict playbook. But the US intervention has now reversed that momentum. While the broader bias still leans toward structural dollar weakness, escalating Middle East tensions are injecting support for the greenback via the commodity channel.
"That channel will remain central in the days ahead, as Iran — according to state-run TV — has vowed to retaliate by closing the Strait of Hormuz, a critical artery through which about one-fifth of global oil flows."
Away from geopolitical tensions, Federal Reserve Chair Jerome Powell will be in focus this week, as he gives his semi-annual testimony to Congress.
"Powell is expected to underscore the Fed's independence and reiterate that any rate decision will remain firmly data-dependent. While some lawmakers, particularly from the Republican side aligned with President Trump, may push for earlier cuts, Powell is likely to hold the line, warning against premature easing amid ongoing inflation uncertainty," Convera's Vessey added.
The yield of the US 10-year Treasury was at 4.39%, narrowing from 4.40%, where it stood at the time of the London equities close on Friday. The yield on the 30-year was unchanged at 4.91%.
In London, BP was among the better performers, tracking Brent higher. The oil major rose 1.3%. Shell rose 1.0%.
Elsewhere, Spectris surged 15%. It agreed to a buyout from private equity firm Advent International, although a rival bid from Kohlberg Kravis Roberts & Co.
Advent will pay GBP37.63 in cash per Spectris share 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.
However, a rival bidder could yet emerge after KKR, the New York-based private equity firm, said it continues to engage "constructively" with Spectris, although it added there "can be no certainty" that any firm offer will be made.
KKR, meanwhile, was thwarted in its consortium's effort to acquire Assura. Assura recommended the new cash-share offer from peer Primary Health Properties, describing it as "fair and reasonable".
Under the terms of the increased Primary Health Properties offer, Assura shareholders would receive 0.3865 new Primary Health Properties shares and 12.5 pence in cash.
In addition, Assura shareholders would be entitled to receive a special dividend of 0.84p per Assura share.
Based on the Primary Health Properties closing share price of 103.5p on Friday last week, the fresh Primary Health Properties offer implies a total value to be received by Assura shareholders of 53.3p for each Assura share.
This represents a premium of 5.8% to the value of the best and final cash offer of 50.42p per Assura share, made by Sana Bidco, a consortium made up of KKR and property investor Stonepeak Partners.
Assura shares rose 0.1%. Primary Health fell 4.0%.
One Health Group shot up 7.5%. It reported strong growth in annual sales and profit as it delivered more surgical procedures to NHS patients.
Pretax profit rose 36% to GBP1.5 million in the financial year that ended March 31 from GBP1.1 million the year prior, as revenue climbed 23% to GBP28.4 million from GBP23.0 million.
Chief Executive Adam Binns said: "We have delivered a strong performance in all our three drivers of growth; more patients, more operating theatre capacity and a record number of new surgeons applying to provide their services to the group."
Still to come on Monday is a US flash purchasing managers' index reading at 1445 BST.
By Eric Cunha, Alliance News news editor
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