FTSE 100 Set to Open Higher as Middle East Tensions Ease
European stock markets are expected to start the week on a firmer footing after Iran and the US refrained from further military escalation over the weekend, easing concerns over disruptions to global energy. . .
European stock markets are expected to start the week on a firmer footing after Iran and the US refrained from further military escalation over the weekend, easing concerns over disruptions to global energy supplies. Futures indicate theFTSE 100will open around30 points higher (0. 3%)at10,765, building on Friday’s0. 9%gain, although London’s advance may lag some European peers as falling oil prices weigh on heavyweight energy stocks. Brent crude slipped toUS$92. 03 a barrelon Monday morning fromUS$95. 49at Friday’s London close after Iran halted retaliatory attacks against US allies in the Middle East. Washington also signalled it would allow diplomatic negotiations to continue, reducing immediate fears of further conflict. The decline in oil prices could pressureShellandBPat the open, given their significant weighting within the FTSE 100. Currency markets were relatively subdued. Sterling edged up toUS$1. 3352, while the euro strengthened toUS$1. 1405against the dollar. US Treasury yields also eased slightly, reflecting a modest improvement in investor sentiment. Asian markets traded positively overnight, with Hong Kong’sHang Sengrising0. 8%, Australia’sS&P/ASX 200climbing1. 3%, and both theNikkei 225andShanghai Compositeposting modest gains. Gold continued to edge higher, trading atUS$4,088. 42 per ounce. In UK corporate news,Serica Energyannounced an agreement to acquirePharos Energyin a deal valuing the company at approximately£146 million. Shareholders will receive around28. 67p in cash per share, alongside a4. 0p special dividend, taking the total value of the offer to32. 67p per share. Chief executive Chris Cox said the acquisition supports Serica’s long-term strategy of expanding internationally while increasing reserves, production and cash generation. Investors will also be watching the release of Germany’sIfo Business Climate Indexand USdurable goods orderslater on Monday. Attention later this week will turn to interest rate decisions from theUS Federal Reserve, theBank of Englandand theBank of Japan, alongside key inflation data from Australia and the eurozone. On the UK corporate calendar,AstraZenecapublishes half-year results, whileVodafoneissues a trading update. If anyone reads this article found it useful, helpful? Then please subscribewww. share-talk. comor followSHARE TALKon our Twitter page for future updates. Terms of Website UseAll information is provided on an as-is basis. Where we allow Bloggers to publish articles on our platform please note these are not our opinions or views and we have no affiliation with the companies mentioned