The FTSE 100 opened 40 points higher at 10,720 on Monday, buoyed by diplomatic developments over Ukraine and a drop in Brent crude prices. The index gained as investors weighed positive geopolitical signals alongside a busy UK corporate calendar featuring a major broadcasting merger and a budget airline takeover.
Market Open and Key Drivers
Brent crude futures fell 0.46% to $71.79 a barrel, while US West Texas Intermediate (WTI) rose 0.36% to $68.44. The decline in oil prices helped ease inflation concerns, supporting equity markets. On the diplomatic front, US President Donald Trump held separate calls with Russian President Vladimir Putin and Ukrainian President Volodymyr Zelensky ahead of this week’s NATO summit in Ankara. The Kremlin said the discussions covered efforts to resolve the conflict in Ukraine as well as issues 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 on Friday. Against the euro, sterling eased to €1.1666 from €1.1672.
Gainers and Losers
Top gainers:
- BAE Systems: +2.55% to £2,032
- Aberdeen Group: +2.40% to £264.60
- RELX: +2.36% to £2,389
- Experian: +2.08% to £2,699
- Babcock International Group: +1.97% to £1,059.50
- St. James’s Place: +1.96% to £1,328.50
Top losers:
- Halma: -1.30% to £3,962
- Diploma: -0.97% to £7,130
- Spirax Group: -0.96% to £6,710
- Fresnillo: -0.72% to £2,901
- DCC: -0.58% to £6,055
- Games Workshop: -0.28% to £21,080
Sky Acquires ITV Broadcasting Business
Sky confirmed plans to acquire ITV’s broadcasting business for £1.6 billion. The deal includes £1.2 billion in cash upfront and another £200 million in cash payable in 2028. As part of the agreement, Sky will also transfer ownership of its production company Love Productions—the creator of The Great British Bake Off—to ITV. The acquisition comes as Comcast, Sky’s owner, works to spin off its media businesses, including Sky, into the separately listed NBCUniversal.
EasyJet Agrees £5.2 Billion Takeover
EasyJet has agreed to a £5.2 billion takeover offer from US investment firm Castlelake at £6.90 per share. Chris Beauchamp, chief market analyst at IG, commented: “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.” EasyJet shares rose nearly 10% to £612.20, a four-year high.
CBI Survey Shows Financial Services Decline
Rising oil prices fueled concerns about inflation and interest rates, leading to a sharp slump in financial services activity in the second quarter. Profitability fell heavily to -65% in June from +38% in March, and sentiment deteriorated from +31% 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.”
Global Market Overview
US markets were closed on Friday for the Independence Day holiday. In Asia on Monday, Japan’s Nikkei 225 fell 0.2%, China’s Shanghai Composite dropped 0.3%, Hong Kong’s Hang Seng rose 0.8%, and Australia’s S&P/ASX 200 slipped 0.2%. In India, the Nifty 50 and Sensex both gained 0.66% and 0.70%, respectively.