20th Apr 2026 09:07
(Alliance News) - Stock prices in London opened lower on Monday, as the oil price climbed after tensions between the US and Iran escalated again after the US seized an Iranian vessel.
The FTSE 100 index opened down 61.57 points, 0.6%, at 10,606.06. The FTSE 250 was down 260.20 points, 1.1%, at 22,945.72, and the AIM all-share was down 2.94 points, 0.4%, at 807.17.
The Cboe UK 100 was down 0.5% at 1,057.37, the Cboe UK 250 was 0.9% lower at 20,056.76, and the Cboe small companies was down 0.5% at 18,096.92.
In European equities on Monday, the CAC 40 in Paris was down 1.3%, while the DAX 40 in Frankfurt was 1.4% lower.
Sterling was at USD1.3499 on Monday morning, down from USD1.3556 at the London equities close on Friday. Against the euro, sterling was little changed at EUR1.1483 from EUR1.1481.
The euro was lower at USD1.1756 from USD1.1805. Against the yen, the dollar was higher at JPY158.96 versus JPY158.08.
Investors were focused on developments between the US and Iran, after the US navy fired on and seized an Iranian ship.
Iran closed the Strait of Hormuz at the weekend, just a day after reopening it, citing the US' blockade of its ports.
The blockade of Iranian ports has been a significant sticking point in negotiations between the two countries, and state broadcaster IRIB cited Iranian sources as saying "there are currently no plans to participate in the next round of Iran-US talks" in Pakistan.
Brent oil was trading higher at USD95.70 a barrel on Monday morning from USD89.15 on Friday.
As a result, BP and Shell led the FTSE 100 and rose 3.1% and 2.3% respectively.
"Tech-heavy indices, in particular, are doing just fine this morning—despite the jump in energy prices—as news on the AI front has been very encouraging," noted Swissquote analyst Ipek Ozkardeskaya.
"As long as oil prices remain below the USD100 per barrel level, investors seem willing to maintain—and even increase—exposure to technology names."
Ozkardeskaya added: "While bypassing the energy shock implications for global economies remains risky, part of the focus will clearly shift to earnings—as markets look for a breather from war-driven headlines."
The analyst also noted that global policymakers have appeared less hawkish in recent weeks. "Officials at the European Central Bank and the Bank of England have said they are closely monitoring price pressures, but are moving away from their earlier tighter policy stance for the upcoming meetings," Ozkardeskaya said.
In Asia on Monday, the Nikkei 225 in Tokyo was up 0.6%. In China, the Shanghai Composite was 0.8% higher, while the Hang Seng Index in Hong Kong gained 0.7%. The S&P/ASX 200 in Sydney was up 0.1%.
In the US on Friday, Wall Street ended higher, with the Dow Jones Industrial Average up 1.8%, the S&P 500 1.2% higher and the Nasdaq Composite up 1.5%.
The yield on the US 10-year Treasury was quoted at 4.27% on Monday, widened from 4.24% on Friday. The yield on the US 30-year Treasury was quoted at 4.90%, stretched from 4.88%.
Back in London, airlines fell amid heightened tensions in the Middle East. On the FTSE 100, IAG was down 3.5%. On the FTSE 250, Wizz Air slumped 4.8% and easyJet was 3.8% lower.
Renishaw led the FTSE 250 index and jumped 7.1%.
The Gloucestershire, England-based firm supplies manufacturing technologies, analytical instruments, and medical devices.
The company raised its guidance for the financial year to the end of June, as it said it has seen "particularly strong demand" since its update in February.
The firm now expected financial 2026 revenue between GBP775 million and GBP805 million, with adjusted pretax profit between GBP145 million and GBP165 million.
Renishaw said it has seen a "further substantial expansion" of its order book. "We are actively managing the challenges and increasing costs imposed by ongoing economic and geopolitical uncertainties and supply chain pressures," it said.
Plus500 shares were up 1.0% as it said it expects revenue and earnings before interest, tax, depreciation and amortisation for 2026 to beat current market expectations.
It puts the consensus forecasts at revenue of USD779.3 million and Ebitda of USD360.4 million.
"The group delivered an excellent performance in the quarter, with strong growth across key financial and operational metrics, underpinned by our proprietary technology and highly efficient, scalable customer acquisition capabilities," said Chief Executive Officer David Zruia.
On AIM, shares in Advanced Medical Solutions jumped 11% after it confirmed it is in discussions with US private equity firm TA Associates Management LP regarding a possible takeover offer.
On Saturday, Sky News reported that the Boston, Massachusetts-based private equity firm is preparing a formal offer for the Cheshire, England-based surgical dressings company worth around 280 pence per share, or GBP600 million in total.
TA Associates is required to announce a firm intention to make an offer or that it does not intend to make an offer by May 16.
Meanwhile, Evoke confirmed discussions with casino operator Bally's Intralot SA regarding a possible takeover offer at 50 pence per share.
Shares in Evoke were up 7.2%. The possible offer is at a 32% premium to the closing price of 37.90p on Friday.
The betting operator and owner of the William Hill and 888 brands said it expects the proposal to comprise an all-share combination with a partial cash alternative.
Bally's has until May 18 to announce a firm intention to make an offer, or that it does not intend to make an offer.
Back in December, Evoke kicked off a strategic review, which could include a sale of the company, after the UK government budget which the gambling firm warned would lift yearly duty costs by up to GBP135 million.
Gold was lower at USD4,789.10 an ounce early on Monday from USD4,869.13 late Friday.
Still to come on Monday's global economic calendar is Canadian CPI figures.
By Michael Hennessey, Alliance News reporter
Comments and questions to [email protected]
Copyright 2026 Alliance News Ltd. All Rights Reserved.
Related Shares:
BPShellInternational AirlinesWizz AireasyJetRenishawPlus500Advanced Medical Solutions GroupEvoke Plc