The FTSE 100 opened 40 points higher at 10,720 as diplomatic developments over Ukraine, the funeral of Iran’s late supreme leader, and a fresh OPEC+ output increase weighed on a busy UK economic calendar. Meanwhile, Brent crude futures fell 0.46% to $71.79 a barrel. US West Texas Intermediate (WTI) gained 0.36% to $68.44 a barrel.
US President Donald Trump held calls with Russian President Vladimir Putin and Ukrainian President Volodymyr Zelensky ahead of this week’s Nato summit in Ankara.
According to the Kremlin, the discussions covered efforts to settle in Ukraine, as well as in Iran and the wider Middle East. Meanwhile, Ukraine rejected Russia’s claim that Moscow had captured the strategic eastern city of Kostyantynivka.
The pound stood at $1.3343 early Monday, down from $1.3351 at the close on Friday. Against the euro, sterling eased to €1.1666 from €1.1672.
On the upside, BAE Systems rose 2.55% to £2,032, while Aberdeen Group advanced 2.40% to £264.60. RELX gained 2.36% to £2,389, and Experian moved higher by 2.08% to £2,699. Babcock International Group added 1.97% to £1,059.50, while St. James’s Place climbed 1.96% to £1,328.50.
On the downside, Halma declined 1.30% to £3,962, while Diploma slipped 0.97% to £7,130. Spirax Group fell 0.96% to £6,710, and Fresnillo moved lower by 0.72% to £2,901. DCC eased 0.58% to £6,055, while Games Workshop edged down 0.28% to £21,080.
Sky has confirmed plans to acquire ITV’s broadcasting business. The US-owned broadcaster said on Monday that it will pay £1.6 billion for ITV Media and Entertainment.
The deal will include £1.2 billion in cash up front and another £200 million in cash to be paid out in 2028. As part of the deal, it will also transfer ownership of its £200 million production company, Love Productions, the creators of Great British Bake Off, over to ITV.
The acquisition comes as Comcast, Sky’s owner, is working to spin off its media businesses, including Sky, to form the separately listed NBCUniversal.
EasyJet has agreed to a £5.2 billion takeover at £6.90 per share by the US investment firm Castlelake.
Chris Beauchamp, chief market analyst at IG, said, “Castlelake’s pursuit of easyJet is ending the way we knew it would, the board having satisfied honour by getting the bidders to boost their original offer.”
“While a decent premium to the lacklustre trading of recent years, it still represents a deep discount to the share price of the late 2010s, a sign of how in need easyJet is for someone to take the controls and plot a more successful flightpath.”
Shares rose nearly 10% to £612.20, a four-year high.
As the oil prices rose, concerns about inflation and interest rates rose, and financial services activity slumped in the quarter.
Profitability also fell heavily, to -65% in June from +38% in March, and sentiment deteriorated from a +31% measure in March to -34% in June.
Louise Hellem, CBI Chief Economist, said, "The political transition underway must not slow delivery of the government’s Financial Services Growth and Competitiveness Strategy at a time when activity has deteriorated, and firms are facing a more uncertain outlook."
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US markets were closed on Friday for the Independence Day holiday. In Asia on Monday, Nikkei 225 in Tokyo fell 0.2%, while China’s Shanghai Composite was down 0.3%. Hong Kong’s Hang Seng rose 0.8%, and Australia’s S&P/ASX 200 slipped 0.2%. In India, Nifty 50 and Sensex both rose 0.66% and 0.70%, respectively.