5th Oct 2026 09:09
(Alliance News) - Stock prices in Europe opened mixed on Monday, with events in the Middle East keeping a lid on enthusiasm, though equities in Tokyo shone after shares in New York ended last week on the up.
The FTSE 100 index edged up 4.20 points at 10,466.15. The FTSE 250 fell 52.40 points, 0.2%, at 24,141.84, and the AIM all-share edged down just 0.35 points at 783.40.
"The Footsie started on the front foot in early trade, but lost ground as worries about the repercussions of the energy crisis reverberate again. The Middle East remains mired in uncertainty, keeping crude costs elevated and piling pressure on companies and consumers around the world," Wealth Club analyst Susannah Streeter commented.
The Cboe UK 100 added 0.2% at 1,038.74, the Cboe UK 250 was down 0.2% at 20,980.16, and the Cboe small companies was up 0.2% at 18,997.20.
In European equities on Monday, the CAC 40 in Paris fell 0.8%, while the DAX 40 in Frankfurt was fractionally higher. Schneider Electric fell 6.6% after unveiling a roughly USD23 billion buy, weighing on the CAC 40.
In Tokyo, the Nikkei 225 surged 2.4% on Monday. Sydney's S&P/ASX 200 rose 0.1%. The Hang Seng Index in Hong Kong was flat. Financial markets in Shanghai remain closed.
In New York, the Dow Jones Industrial Average rose 0.5% on Friday, the S&P 500 added 0.7% and the Nasdaq Composite shot up 1.2%. Stocks rose in the wake of a favourable US jobs report.
Nonfarm payroll employment increased by 29,000 in September, slowing sharply from a downwardly revised 133,000 increase in August and below the FXStreet consensus of 90,000.
Sterling faded to USD1.3219 early Monday, from USD1.3233 at the time of the London equities close on Friday. Against the euro, it rose to EUR1.1802 from EUR1.1750.
The single currency fell to USD1.1198 from USD1.1260 on Friday. It sank to USD1.1162 earlier on Monday, its lowest level since May 2025. Against the yen, the dollar rose slightly to JPY157.75 from JPY157.70.
"Independent euro weakness is the dominant story in FX markets as investors adjust positions for French fiscal risk," ING analysts commented.
"All eyes will remain on French debt this week. Whether last week's sell-off prompts a more fiscally supportive stance from either the right or left in French politics remains to be seen, but for the time being it looks like investors will steer clear of French debt. And presumably there will be intense focus on whether last week's French budget submission makes any progress in a deeply divided parliament."
The yield on the US 10-year Treasury was quoted at 5.26% early Monday, steady from late Friday afternoon London time. The 30-year yield was at 5.62%, widening from 5.61%.
A barrel of Brent rose to USD101.33 on Monday from USD100.50 late Friday afternoon. Gold rose to USD4,161.73 an ounce from USD4,143.18.
Yemen's Houthi military spokesman Yahya Saree on Sunday said the group launched a ballistic missile and drone attack on Saudi Arabian Oil Co, Aramco, sites in capital Riyadh and the oil-rich Khurais area in the kingdom's east.
"Both operations successfully achieved their objectives," the spokesperson said in a statement posted on X. "The strikes were precise, causing large fires at the targeted sites."
Iran's top diplomat insisted on Sunday that there would be no military solution to the US' war against the Islamic republic, with talks on ending the conflict apparently at an impasse.
The main point of contention remains Iran's attempt to blockade the Strait of Hormuz, a vital conduit for Gulf oil and gas where a UK maritime agency reported on Sunday another tanker was struck by an unknown projectile.
"If our enemies again choose the path of military confrontation, our response will be stronger than before, and we will defend ourselves with even more force," Iranian Foreign Minister Abbas Araghchi said at a gathering of foreign ambassadors.
"There is no military solution, nor any solution based on new sanctions," he continued, adding "only negotiations based on justice and fairness" could end the conflict.
The International Energy Agency said Saturday that member countries had so far released 325 million barrels of oil and oil-derivative products from strategic reserves, from 400 million barrels promised in March.
The update came a day after G7 countries, in coordination with the IEA, agreed to immediately release 100 million barrels of diesel and crude oil to ease global energy supply concerns caused by fallout from the US-Iran war.
In London, M&A news was in focus. Ithaca shares climbed 2.7%, the best FTSE 100 performer. It said it has agreed to buy a portfolio of offshore oil assets in Canada from Suncor Energy Inc for up to USD1.11 billion.
The Aberdeen, Scotland-based oil and gas company operating in the North Sea said it will pay an initial USD860 million for the assets, located off the East Coast of Newfoundland and Labrador, plus potential oil price related contingent consideration of up to USD250 million.
The deal, which is expected to be financed through cash, undrawn debt capacity and new Canadian debt finance, is expected to be immediately earnings, cash flow and dividend accretive.
The assets, bought from Calgary-based Suncor Energy, comprise a 48% operated working interest in Terra Nova, a 40% non-operated interest in the White Rose Existing Lands, and a 39% non-operated interest in the White Rose Growth Lands, including the West White Rose Extension.
BT rose 1.6% as it announced a deal to rescue TalkTalk Telecommunications Ltd and PlatformX Communications Ltd out of administration.
The London-based telecommunications firm said the total cash impact in financial 2027 arising from the deals will be around GBP400 million, comprising both consideration and other cash impacts.
After an unsuccessful sale process for TalkTalk's consumer and wholesale operations, BT said it had agreed the deal, "in the public interest, to protect customers and critical national infrastructure."
During the last 12 months, TalkTalk reported revenues of GBP1.2 billion and was loss-making, but BT said over a period of time the acquisition will become value accretive as the business is stabilised and synergies are realised.
TalkTalk sells home broadband and phone services in the UK and has 1.5 million retail customers and 1 million wholesale customers. PlatformX is a wholesale provider, supplying other telecom providers with internet connectivity services. It was formed from the combination of Virtual1 and TalkTalk's wholesale services and national network business. BT's Openreach is a network infrastructure supplier of TalkTalk.
Elsewhere in London, Hercules shares climbed 10%. The power and infrastructure services firm has won GBP5 million of new contracts in the UK water sector.
"The majority of these contracts, which have been secured within the Thames Water region, commenced during FY2026 and are expected to be completed in the next six months," Hercules says.
By Eric Cunha, Alliance News news editor
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