16th Jun 2025 11:52
(Alliance News) - Stock prices in London were in the green at midday on Monday, as the conflict between Iran and Israel continues to drive oil prices higher.
Meanwhile in the UK, house prices have slipped this month according to property portal Rightmove.
The 0.3% decline on-month, an "unusual dip" for June, comes after recent UK stamp duty increases. Year-on-year, house price growth slowed to 0.8% in June from 1.2% in May.
"It appears that we're now seeing the decade-high level of homes for sale, and the recent stamp duty increases in England, have a delayed impact on new sellers' pricing...Agents have been telling us that sellers need to set a competitive price to have a better chance of finding a buyer in the current market, and it looks like many are listening and responding to that message," Rightmove's Colleen Babcock commented.
The FTSE 100 index was up 42.80 points, 0.5%, at 8,893.43. The FTSE 250 was up 158.02 points, 0.8%, at 21,331.35, and the AIM All-Share was up 2.91 points, 0.4%, at 764.34.
The Cboe UK 100 was up 0.6% at 885.91, the Cboe UK 250 was up 1.0% at 18,833.71, and the Cboe Small Companies was up 0.2% at 17,109.90.
"European shares were surprisingly resilient against a backdrop of uncertainty," AJ Bell's Russ Mould commented. "Helping to prop up FTSE 100 was continued strength in oil prices as tensions remained high in the Middle East...driving shares in FTSE heavyweights BP and Shell and taking the broader market upwards in the process."
Brent oil was quoted at USD73.76 a barrel at midday in London on Monday, up from USD73.61 late Friday. On the FTSE 100, Shell was up 1.4% and BP gained 0.5%.
"Global oil prices jumped last week after Israel attacked Iran, raising concerns about major disruptions to supply," Mould said. "Despite a weekend of violence between the two countries, investors showed no signs of panicking, judging by movements in financial markets on Monday."
Gold was quoted lower at USD3,416.43 an ounce against USD3,427.50 late on Friday, as "investors remain alert to ongoing geopolitical tensions" according to Mould.
He added: "The Middle East conflict remains a fluid situation and there is the potential for markets to still experience sudden jolts if the tension escalates further."
Back on the FTSE 100, Peel Hunt was up 1.7%, despite its pretax loss widening to GBP3.5 million in the year ended March 31. This was amid a low number of companies admitting their shares on the London Stock Exchange via an initial public offering.
The London-based broker and investment bank also said revenue climbed 6.4% to GBP91.3 million, however, and that financial 2026 has started "more positively".
Peel Hunt said: "We are seeing a rotation out of US assets into Europe and greater institutional positivity towards the UK. Equity capital market activity in the UK remains generally subdued but could gain traction should macroeconomic conditions continue to stabilise."
On the FTSE 250, NextEnergy Solar Fund gained 1.1%.
The Guernsey-based specialist investor in solar energy and energy storage said net asset value per share fell 9.2% on-year to 95.1 pence at March 31, reflecting a decrease in short-term UK power price forecasts.
However, the dividend was raised by 1.0% to 8.43p for the year ended March 31, and Next Energy Solar confirmed its full-year dividend target guidance of the same amount.
On AIM, Caspian Sunrise dropped 19%.
The Kazakhstan-focused oil and gas exploration and production company said completion of its planned USD88 million disposal, of the BNG Contract Area's shallow MJF and South Yelemes structures, remains dependent on certain regulatory approvals.
Consequently, the company "has decided to delay publication of the 2024 financial statements until after completion of the disposal, or...until after it is clear the disposal will not take place in the foreseeable future, or not take place at all".
In European equities on Monday, the CAC 40 in Paris was up 0.8%, while the DAX 40 in Frankfurt was up 0.4%.
The pound was quoted lower at USD1.3581 at midday on Monday in London, compared to USD1.3591 at the equities close on Friday. The euro stood at USD1.1577, higher against USD1.1560. Against the yen, the dollar was trading slightly higher at JPY144.09 compared to JPY144.01.
Stocks in New York were called higher. The Dow Jones Industrial Average was called up 0.4%, the S&P 500 index up 0.5%, and the Nasdaq Composite up 0.6%.
The yield on the US 10-year Treasury was quoted at 4.43%, widening from 4.42%. The yield on the US 30-year Treasury was quoted at 4.92%, widening from 4.90%.
Still to come on Monday's economic calendar, Canada has housing starts, and the US has the New York State manufacturing index.
By Emma Curzon, Alliance News reporter
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