12th Oct 2026 09:09
(Alliance News) - Equities in Europe moved higher in early trade on Monday, as a Russian diesel deal kept a lid on the oil price, before eyes turn to a US inflation reading and the start of the banking earnings season.
The FTSE 100 index traded up 59.46 points, 0.6%, at 10,611.51. The FTSE 250 was up 44.94 points, 0.2%, at 24,258.72, and the AIM All-Share was down 0.98 of a point, 0.1%, at 776.55.
The Cboe UK 100 was up 0.5% at 1,052.89, the Cboe UK 250 edged up 0.1% at 21,135.21, and the Cboe Small Companies added 0.6% at 18,920.91.
In European equities on Monday, the CAC 40 in Paris was up 0.5%, while the DAX 40 in Frankfurt climbed 0.7%.
The US observes Columbus Day on Monday. The Securities Industry & Financial Markets Association in the US has recommended a Treasury market closure on Monday as a result. Equities will trade as normal.
Sterling rose to USD1.3243 on Monday, from USD1.3233 at the time of the London equities close on Friday. Against the euro, the pound faded to EUR1.1815 from EUR1.1818.
The single currency fetched USD1.1204, up from USD1.1195. Versus the yen, the buck was slightly higher at JPY158.42 from JPY158.36.
Brent fell to USD103.74 a barrel, from USD104.86 late Friday afternoon, though events in the Middle East remain in focus.
A fresh Houthi strike hit Riyadh's international airport on Sunday, a day after an attack claimed by the Yemeni group killed at least a dozen people and forced authorities to suspend operations there.
Saturday's attack, the deadliest on Saudi soil in more than a decade, was a sharp escalation in the Yemen war, where Riyadh has long militarily supported the internationally recognised government against the Houthis.
US President Donald Trump said Saturday he would soon decide whether to join Saudi strikes against Iran-backed Houthis after the attack on Riyadh's international airport.
"We may. We're going to look at it. We just found out about the recent attack, so we'll make a decision," Trump told reporters at the White House. "We move very quickly."
Trump has claimed that Russia and Ukraine agreed to an "energy ceasefire" to immediately halt attacks on each other's energy infrastructure.
It comes after the US president's deal to obtain diesel from Russia opened a fresh rift with Ukrainian leader Volodymyr Zelensky.
Wealth Club analyst Susannah Streeter commented: "Trump's deal with Putin to import Russian diesel helped ease oil prices slightly, but it has failed to make a significant dent in the cost of crude, given the situation in the Middle East remains so tense.
"The slight dip in prices does appear to have delivered some respite on financial markets, with President Trump clearly anxious to bring down fuel costs ahead of the crucial mid-term elections. The FTSE 100 has started the week on the front foot, but there is still nervousness around. On Wall Street, stocks are set for a brisk start as earnings season gets underway and expectations remain high for robust numbers to feed through. Like the economy, this is set to be a K-shaped performance, with tech, energy and financial stocks likely to see bumper earnings roll in, while the consumer discretionary sector is likely to feel the pain of more cautious consumers."
As usual US banks kick start the third quarter reporting season with results due from JPMorgan Chase, Goldman Sachs, Morgan Stanley, Bank of America, Citigroup and Wells Fargo among others.
Citigroup, Goldman Sachs, JPMorgan and Wells Fargo light the blue touch paper on Tuesday, before Bank of America and Morgan Stanley follow on Wednesday.
There is also a US consumer price index report on Wednesday.
XTB analyst Kathleen Brooks commented: "This is a high impact week for financial markets. Earnings season will ramp up with Q3 reports from the major Wall Street banks. US CPI, the UK's August GDP reading, Eurozone CPI and US retail sales will dominate the economic calendar. Geopolitics are also in focus as the war in the Middle East shifts deeper into the Gulf after Saudi Arabia's airport suffered drone damage from Houthi attacks. All eyes will also be on the bond market as we lead up to key central bank speeches throughout the week at the IMF/ World Bank conference."
In London, Hays shares fell 9.9% as the recruiter said its first quarter went in line with expectations, as the decline in net fees slowed.
However, it noted activity in the permanent recruitment sector is "mixed with sustained strong growth in North America but ongoing fragility in Northern Europe".
Hays was among the worst FTSE 250 performers.
Among large-caps, banks traded higher, with HSBC up 2.2%, Standard Chartered rising 2.0% and Barclays advancing 1.4% amid a calmer bond market.
Barclays is down 9% over the past month, HSBC 7% lower and StanChart down 7% amid the bond market turmoil.
Elsewhere in London, Kefi Gold & Copper rose 28%. It is resuming development at the Tulu Kapi project in Ethiopia, after a security incident last month.
The 'Genji incident' resulted in "multiple fatalities involving security personnel and community members, including one company employee", Kefi said in September, prompting it to suspend work at the gold project.
It added on Monday: "The Genji incident on 4 September 2026 was the first occasion when any company personnel had suffered injury, let alone a fatality, in some 12 years of Kefi's control of the project. The incident was fortunately concluded on 10 September 2026, largely as a result of close collaboration with the local community."
Since the event, it has held consultations with community representatives and government representatives, along with other stakeholders.
"As a result of these positive discussions, the company is now recommencing the development programme for Tulu Kapi in a phased and measured approach," Kefi added.
ActiveOps shed 43%. It left its outlook for the current financial year unchanged, but has warned on the next one, amid a "potential customer loss and lower new business activity".
In a trading statement, the provider of decision intelligence software for service operations said revenue in the first half ended September 30 rose 21% to GBP25.3 million from GBP20.8 million a year prior.
"While new customer wins and implementations have been lower than in the prior year, the board continues to expect FY27 results to be in line with current market expectations," it said.
It puts the market forecast ranges at GBP47.4 million to GBP49.7 million for revenue and GBP5.0 million to GBP6.4 million for adjusted earnings before interest, tax, depreciation and amortisation. However, it expects an outcome for financial 2028 below market expectations.
"The company has been notified by a major customer that it does not intend to renew its contract with ActiveOps when it falls due in March 2027. Whilst notification of this non-renewal has only just been received and details are yet to be formally agreed, the board has adopted a prudent approach and removed the associated revenue in full from its FY28 expectations. This reduces previously anticipated FY28 revenue by approximately GBP3.8 million," ActiveOps said.
For financial 2028, market forecasts stand at GBP50.0 million to GBP56.4 million for revenue, and GBP6.7 million to GBP9.0 million for adjusted Ebitda. In financial 2026, which ended back in March, ActiveOps reported an adjusted Ebitda of GBP4.3 million and revenue of GBP45.0 million.
Gold fell to USD4,182.33 an ounce early Monday, from USD4,189.88 at the time of the London equities close on Friday.
By Eric Cunha, Alliance News news editor
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