- FTSE 100 dips 51 points
- Lloyds Bank and BT Group among fallers
- Rolls-Royce and AstraZeneca hold positive
- IAG and Vodafone among FTSE's 'cheapest'
- US-EU deal better than feared
- Wall Street preps for busy week
4:33pm: FTSE closes lower
The FTSE 100 closed Monday’s session on the backfoot after losing the early momentum from the weekend’s US-EU trade news.
London’s blue-chip benchmark remains quite close to its record highs, nevertheless.
At 9,069 on Monday, the index lost 51 points or 0.56% for the day.
3:45pm: BA owner and Vodafone among ‘cheapest’ FTSE 100 stocks
British Airways owner International Consolidated Airlines (IAG) and Vodafone are among the ‘cheapest’ stocks in the FTSE 100, that’s according to some desktop work done by broker AJ Bell.
An AJ Bell analysis, setting out to determine the cheapest stocks (using both price-to-earnings and price-to-book metrics) found these portfolio stalwarts among those with lowest ratings.
It comes after the FTSE is seeing new highs, and as some investors scratch around for ‘value’.
The list also included advertising firm WPP and housebuilder Barratt Redrow.
WPP is the lowest-ranked by forward PE, according to AJ Bell, trading at 6.3. The advertising agency is facing structural disruption from AI and has seen its shares fall 41% over the past year.
IAG meanwhile remains on a low valuation despite a 126% share price gain in the last 12 months, with AJ Bell citing the company’s improved financial position since the pandemic.
Vodafone is reckoned to be the lowest according to its price-to-book value, trading at 0.5. The telco company has been reducing debt and simplifying operations after weak cash flow and growth concerns.
Barratt Redrow also trades at a discount, with shares recently hitting a three-year low due to weaker-than-expected sales and ongoing concerns around mortgage affordability.
3:30pm: FTSE struggles in afternoon trade
The FTSE 100 continued to stagger lower through afternoon deals, failing to keep up the early enthusiasm.
Down 58 points or 0.6% changing hands at 9,063
2:50pm: Wall Street makes muted start to busy week
Wall Street benchmarks were calm and, if anything, a bit boring as trading began on Monday.
The S&P 500 opened little changed as investors looked ahead to major earnings from large-cap technology firms. At 6,398, the index was up 9 points or 0.15%.
Meanwhile, the Dow Jones was up a sliver rising 25 points, or 0.05%, to 44,927.
The Nasdaq gained a little more, up 69 or 0.33% to 21,178.
Microsoft, Meta, Apple and Amazon are all scheduled to report this week (the four of which over $11.3 trillion in market value – so they do grab attention).
The so-called “Magnificent Seven” in particular, they really need to deliver to keep momentum going, that’s according to said State Street strategist Michael Arone.
The euro fell 0.7% against the dollar, posting its biggest single-day drop since May, as markets reacted to the US-EU agreement.
1:30pm: Wall Street prepares for loaded week
Wall Street is kicking off a loaded week with a bit of a spring in its step.
US stock futures pointed higher early Monday, with contracts on the S&P 500 and Nasdaq up about 0.2% and 0.4%, respectively. The Dow is just nudging along above the flatline after a strong Friday that saw the S&P 500 notch its fifth record high in a row.
Fueling the early optimism is a fresh US-EU trade pact that sets tariffs on European goods at 15%—a relief compared to the 30% that had been on the table. President Trump called it “the biggest of them all,” while EU Commission President Ursula von der Leyen described the agreement as “the best we could get.”
Initial gains have cooled a bit as traders take a closer look at the deal’s fine print. Still, the mood is mostly positive, and attention is quickly shifting to what could be one of the most eventful weeks of the summer.
12:01pm: FTSE dips negative by midday
As the Wall Street open approach, London’s FTSE had surrendered the early impetus with the index down slightly at midday.
At 9,110, the index was 0.11% lower.
FTSE movers
With little in terms of noteworthy blue-chip company news most of Monday’s movers were pulled around by prevailing sentiments.
Rolls-Royce shares were trading in positive territory, up 0.5% to 981.9p, AstraZeneca nudged 0.8% higher to 10,886p.
Lloyds Banking Group was down 0.76% at 78.44p, whilst Aviva was 0.22p lower at 638.6p.
BT Group was the FTSE 100’s biggest faller, losing around 3.6% to 214.7p.
Retailers like Marks & Spencer and Tesco were also lower, down around 2.2% and 1.4% respectively, to 347.7p and 422.6p.
British Gas owner Centrica was 1.8% lower to 159.75p, and mining major Glencore dropped 1.4% to 313.8p.
In the risers column, property portal Rightmove gained just under 1% to 787.4p
Intertek, the manufacturing QA specialist, saw its shares up 1.4% to 4,982, whilst accounts software firm Sage was nearly 1% higher at 1,274.5p.
Investment firm ICG Plc climbed 0.8% to 2,164p
Elsewhere, engineer Melrose was up 0.74% at 517.4p.
11:00am: FTSE clinging to early gains
By late morning, London's blue-chip benchmark was holding positive territory, still, as attention moves from Trump's agreements with the EU towards upcoming talks with China.
The FTSE 100 was up 11 points for the day, at 9,131.
Also in coming into focus is Wall Street's quite busy results calendar, which includes a number of the so-called 'Mag 7' tech stocks that have helped push US stock indices to record levels in recent years. Investors will be keen to see signs that these stocks are able to deliver against what have become increasingly high expectations.
“Further tariff deals and a successful earnings season so far continue to keep the fires burning, with both the S&P500 and Nasdaq again hitting record closing highs," said Richard Hunter, head of markets at Interactive Investor.
"US corporates appear to be in rude health, with more than 80% of the companies which have reported so far having beaten expectations, with strong performances including, but not limited to, the likes of the banks and Alphabet.
"The favourable backdrop will face a stern test this week as the barrage of earnings continues, with updates across a range of sectors, including Boeing, Ford, Chevron and Exxon. In addition, there are also high expectations as four of the “Magnificent Seven” report in the form of Meta Platforms, Microsoft, Apple and Amazon."
Small-Cap Movers
Shares in Ceres Power Holdings PLC (LSE:CWR, OTC:CPWHF) surged 44% on Monday after its South Korean partner Doosan Fuel Cell began mass production of power systems using Ceres’ solid oxide fuel cell technology. The move marks the first time one of Ceres’ strategic partners has brought its clean energy technology into full-scale commercial production.
STV Group Plc (LSE:STVG) shares dropped around 24% after it lowered its full‑year 2025 revenue and profit expectations, citing weaker advertising and commissioning conditions.
The Glasgow‑based broadcaster now forecasts group revenue of £165 million to £180 million, with adjusted operating margin at around 7%, including £10 million from its Studios segment. STV highlighted that deterioration in commissioning and advertising markets in late H1 and into the second half led to the downgrade.
Shares in Alien Metals (LSE:UFO) rose 27% on Monday after the company reported encouraging silver assay results from its Elizabeth Hill project in Western Australia.
Its joint venture partner, West Coast Silver, announced rock chip and float samples with silver grades reaching 490 grams per tonne (g/t), alongside notable copper (up to 0.42%) and gold (up to 0.19 g/t) values.
Shares in The Smarter Web Company (AQSE:SWC) rose 9% in afternoon trading after the London-listed tech firm confirmed it had raised nearly £19.7 million from the latest round of its ongoing share subscription programme.
9:30am: FTSE’s early enthusiasm tempers
London’s blue-chip benchmark tempered earlier enthusiasm somewhat, with the FTSE 100 now gaining only 15 points for the day – changing hands at 9,136.
Generally speaking, the mood is one of qualified relief in the wake of the EU-US trade deal, albeit, experts note that the so-called deal is neither definitive nor the end of the story.
“The much-awaited trade agreement between the US and the EU has finally been struck,” said Russ Mould, investment director at AJ Bell.
“In reality, this is far from a done deal. It is only a framework and still needs to be signed into law. Furthermore, Donald Trump has form in constantly tinkering at the edges and what he says one day might not be the same as the next.
“Investors are taking each bit of news one day at a time and today is one of celebration.”
Spotlight: Kromek banks $5mln from Siemens
Kromek Group PLC (AIM:KMK), the radiation detection specialist, has received a $5 million payment from Siemens Healthineers as part of a longer-term agreement between the two companies.
The funding comes under what Kromek refers to as its enablement agreement with the German healthcare group’s US arm, Siemens Medical Solutions.
It follows the successful delivery of certain project milestones, according to a statement from the company on Monday.
The payment brings the total amount received by Kromek under the deal to $30 million, with a further $7.5 million due over the next three and a half years.
8:15am: A welcome reduction in uncertainty
“In our view, the new US-EU trade agreement is a political and economic win for Washington, and a pragmatic retreat by Brussels,” said Lale Akoner, global market analyst at eToro.
“While the 15% tariff on most EU exports is lower than the threatened 30%, it's still a sharp jump from pre-2025 levels when many goods faced tariffs under 3%, and is likely to add to inflationary pressures in the months ahead.”
Akoner added: “That said, markets will welcome the reduced uncertainty and the avoidance of an all-out trade war.
“The real winners here are US sectors such as energy, defence and infrastructure, which are set to benefit from the EU’s pledges.”
The analyst noted that devils may remain in some of the outstanding details, highlighting that we still don’t know whether steel, autos or chemicals sectors may face tighter quotas or future exemptions.
“Until those details emerge, the long-term impact for these sectors remains uncertain and may create divergence in sectoral performance in Europe,” he commented.
8:10 am: FTSE 100 opens on front foot
The FTSE 100 opened Monday’s trading on the front foot, supported by Friday’s record highs on Wall Street and the weekend’s news of a trade deal between the United States and the European Union.
Opening deals see the FTSE up 38 points, 0.4%, at 9,158.
7:20am: FTSE 100 seen higher, supported by US-EU deal
London’s FTSE 100 is seen around 50 points higher ahead of Monday’s open, with global markets supported by news of a trade deal between Trump and the European Union.
CFD and spreabetting firm IG Markets calls the blue-chip benchmark up 54 points, making a price of 9,170 to 9,174 about an hour before the London open.
European markets look set to open higher following confirmation of a trade deal between the US and EU that sets a new baseline tariff of 15% on European goods.
Euro Stoxx 50 futures gained 1.0%, while DAX futures rose 0.9% in early Monday trading.
The agreement was announced late Sunday following talks between President Donald Trump and European Commission President Ursula von der Leyen, with both sides aiming to avert a steeper escalation in tariffs ahead of an August 1 deadline.
Investors now see reduced trade uncertainty as a tailwind for equity markets.
Meanwhile, Asian markets delivered a mixed session. Japan’s Nikkei 225 fell 1.0% on doubts over the details of a separate Japan-US trade agreement, which includes a proposed USD 550.00 billion investment pledge.
China's markets were steady ahead of expected US-China talks in Stockholm, with reports suggesting a 90-day extension to the existing tariff truce.