The FTSE 100 opens around 40 points lower at 10,337 amid renewed tensions in the Middle East as Iran and Israel exchanged direct fire for the first time since April’s ceasefire. Meanwhile, Brent crude futures advanced 4.43% to $97.21 a barrel. US West Texas Intermediate (WTI) rose 4.02% to $94.18 a barrel.
Prudential rose 1.37% to £963.60, while Auto Trader Group advanced 1.20% to £474.30 and British American Tobacco gained 1.18% to £4,456. BT Group also moved higher by 1.09% to £203.70, while Metlen Energy & Metals climbed 0.96% to £39.96. Admiral Group rounded out the gainers, adding 0.85% to close at £3,322.
On the downside, Spirax Group was among the biggest laggards, falling 1.54% to £6,715, while Endeavour Mining declined 1.41% to £3,919. AstraZeneca slipped 0.94% to £13,728, and London Stock Exchange Group dropped 0.85% to £9,304. Games Workshop Group also weakened by 0.69% to £18,850, while Next edged lower by 0.59% to £13,545.
Borrowing costs rise in the UK. The 10-year gilt yield, a key indicator of the government’s cost to borrow, is up three basis points this morning to 4.94%.
Meanwhile, the 30-year made a similar move to 5.6%.
Balfour Beatty said that its US subsidiary is no longer under an “independent compliance monitorship”, which was required by the Department of Justice after the company pleaded guilty to fraud against the American military in 2021.
Shares were up 0.4% in early trading. Balfour Beatty Communities is a major private provider of housing to the US Army, Navy and Air Force.
It offers homes at over 55 bases in Texas, Oklahoma and Georgia for around 43,000 military personnel. Its involvement dates back to 1996, when the US government’s Military Housing Privatization Initiative began.
Tate & Lyle accepted a £2.7 billion takeover deal by a rival American food firm. The firm said Ingredion’s offer, which totals £615 per share, represents an “attractive opportunity for shareholders”.
The deal arrives after Tate & Lyle revealed another “disappointing” set of results, as it battles with slowing consumer demand. Ingredion’s offer includes £595 in cash per share, plus a more-than £13 final dividend for the last full financial year and a £6.8 interim dividend for the six months since March.
Jim Zallie, chairman of Ingredion, said the new combined business will “be better positioned to serve customers’ needs for the development of great-tasting, healthier and affordable food products that consumers demand”.
Also Read: Stock Market Today: Sensex Falls 578 Points, Nifty50 Slips Below 23,200
Germany's DAX and France's CAC are set for more losses, while Asian markets have tumbled, with the Kospi plunging 8.2% in Seoul, the Nikkei plummeting 4.2% in Tokyo, and the benchmarks for Shanghai and Hong Kong sliding 2.1% and 1.7%. In India, Nifty 50 and Sensex also declined 0.62% and 0.63%, respectively.
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