- FTSE 100 up 31 points to 10,529
- Oil prices continue to rise after more US-Iran strikes
- BP cuts debt, says margins stronger
5.15pm: Stocks higher
London stocks finished the day higher, as across the Atlantic, US stocks were mixed following a softer-than-expected inflation report. The FTSE 100 closed up 31 points at 10,529.
"Today's softer inflation data has all but ruled out a July Fed rate hike, boosting equities and strengthening the case for policymakers to keep interest rates on hold over the summer months.", IG chief technical analyst Axel Rudolph said.
4.07pm: Miners and banks up top
Miners and banks are powering the FTSE as it moves into the final half hour.
Glencore, Rio Tinto, Anglo American and Antofagasta have all gained more than 2.5%, while precious metals diggers have also entered the fray, with Fresnillo up 1.9% as gold and silver got a boost as the dollar softened after from the US inflation reading.
Banks also moved higher after the earnings releases from US counterparts, with Barclays up most, rising 2.1%, followed by HSBC, Standard Chartered and Lloyds among the leading blue-chip risers.
3.40pm: Pound and euro rise as dollar weakens, equities and gold too
The pound and the euro are up around 0.4% to $1.34 and 0.55% to $1.14432 after the US inflation reading earlier.
It was the biggest softening in US inflation for six years "and it drastically reduces the chance of a rate cut at this month’s FOMC meeting"., says market analyst Kathleen Brooks at XTB.
Markets now see just a 15% chance of a rate hike from the Fed on the 31st July, compared to a 40% chance before the CPI reading.
The market reaction included a rally in the gold price, over 2.3% today, pushing the price back above $4,090 per ounce.
The CPI suggests that Fed members may prefer to extend the pause on rates rather than rush into hikes when core inflation is slowing, Brooks adds.
"Outside of energy, there were also some encouraging signs that service sector inflation has passed its peak in the US. Indices that decreased last month included car insurance, communication, clothing, medical care and used cars and trucks. Shelter and housing costs rose at their slowest pace for 2026 so far, rising 0.1% last month, and services less energy, which includes shelter, transport and medical care, was flat."
Super core inflation, which is closely followed by the Fed, was also stable, which she says "could give the Fed confidence that rates do not need to rise to stem inflation in the coming weeks".
Patrick Munnelly at Tickmill notes that bond yields also moved lower, which that helped support risk assets, including UK equities.
"Lower yields also gave investors some comfort that markets may be able to absorb higher oil without a full rates-led sell-off."
The UK policy backdrop is "more difficult" than the US one, Munnely says, as the Bank of England is dealing with weaker domestic growth, risks of sticky inflation and a highly energy-sensitive economy.
"If oil keeps rising, headline inflation may move higher in the near term. But because the UK is a net energy importer with weak productivity and already tight financial conditions, the bigger medium-term effect may be weaker demand and lower inflation further out.
"That keeps the 'no hawk, no hike' logic alive: oil shocks may look hawkish immediately, but they can become dovish if they squeeze real incomes hard enough."
3.13pm: DeepSeek IPO on the cards
DeepSeek is reportedly exploring another a stock market listing, just weeks after raising $7 billion.
The Chinese AI start-up is seeking a pre-money valuation of about $71 billion, the Financial Times says.
Bosses are said to be preparing for an IPO filing as soon as this year, Bloomberg reports.
The move comes as DeepSeek pushes to develop its own AI chips, reducing its reliance on Nvidia and Huawei hardware.
The fundraising comes as the AI sector moves towards a wave of blockbuster listings, with Anthropic confidentially filing for an IPO in June after a funding round valuing it at about $965 billion, while OpenAI followed days later with its own confidential filing after reaching an $852 billion valuation, although neither company has set a timetable or disclosed the size of a potential float.
Reports have suggested OpenAI may be leaning towards a listing next year.
2.46pm: Wall Street opens in green
US stocks have opened higher, led by the Nasdaq's chipmakers and semiconductor equipment stocks.
The tech-heavy index has risen 0.6%, ahead of gains of 0.3% and 0.1% for the S&P 500 and Dow Jones.
Strongest performers included Lumentum, Lam Research, AMD, Marvell, Micron, Applied Materials and Intel.
The Dow is being held back by a 24% plunge for IBM, with the next fallers being Salesforce, down 3.4% and Microsoft, down 2.1%.
Goldman Sachs is close to the top of the S&P leaderboard, up 5.1% on the back of a strong set of earnings, with Morgan StanIey and JPMorgan Chase up 3.2% and 1.7% after their numbers.
1.36pm: US inflation lower than expected
The FTSE 100 just spiked from red into green after a softer-than-expected US inflation report boosted hopes the Federal Reserve will keep interest rates on hold.
June's CPI rate eased to 3.5% from 4.2%, below forecasts of 3.8%, while core inflation eased to 2.6% against expectations of 2.8%.
On a monthly basis, CPI fell 0.4% compared to May, the biggest monthly decline since May 2020, prompting traders to sharply pare back bets on further Fed rate hikes.
The Footsie climbed from a 30-point deficit to a 10-poiunt gain but is now back below water as the rebound in oil prices in the last couple of weeks makes last month's inflation data a bit irrelevant.
1.25pm: Ryanair drama
Ryanair shares are down, as are most European travel stocks.
But there are also reports that a passenger on a Ryanair flight last week was sucked out of a window after it shattered in mid-air during a journey from Greece.
The 61-year-old Serbian man was said to have been dragged out of his seat and into the plane’s slipstream, hanging headfirst out of the window, with his three nearby passengers holding onto him by the legs.
According to a local report, an engine failure resulted in parts smashing the window. The flight was operated by Ryanair subsidiary Malta Air.
"The flight attendants did not help at all and so far, no one from the company has contacted us. The passengers gave us water," the wife of the victim told "The flight attendants did not help at all and so far, no one from the company has contacted us. The passengers gave us water," the woman told Greek site NewsIt.
A Ryanair spokesperson said: "A Ryanair flight from Thessaloniki to Memmingen on Friday morning returned to Thessaloniki shortly after takeoff when a passenger window dislodged inflight.
"The aircraft landed normally and passengers returned to the terminal. One passenger requested and received medical assistance on the ground in Thessaloniki."
1.11pm: IBM plunges
IBM shares have plunged more than 23% in pre-market trading after the release of preliminary second-quarter results showed slowing growth.
Revenue growth slowed to 1%, with a 7% decline in infrastructure sales offsetting a 5% rise in software, while consulting revenue was flat.
Gross profit margin was down 1% to 57.7% and operating earnings per share rose 5% to $2.93, while diluted EPS on a GAAP basis was down 2%.
12.38pm: World Cup boost for retailers
Warm weather, England's World Cup run and hopes for the incoming Andy Burnham government could combine to support UK retailers over the summer, reckons (or hopes) Shore Capital analyst Clive Black.
Today's BRC June retail sales were "solid", he says, with the weather across much of the UK having remained dry and hot, boosting demand for groceries, clothing, sunscreen, fans and air conditioning units.
He said the progress of Harry Kane, Jude Bellingham etc was also helping spending.
"We would imagine that a semi-final place exceeds prudent budgeting by firms around the World Cup to leave much of the trade already 1-0 up," he says, pointing to stronger demand for groceries, drinks, barbecues and convenience shopping.
Online retailers - your Ocados, Boohoos and Asoses - are expected to outperform stores in upcoming trading updates due to the weather effects the BRC confirmed.
Looking beyond the summer, Black sees "grounds for cautious optimism" under incoming Prime Minister Burnham if he prioritises economic growth and appoints advisers such as Andy Haldane and Jim O'Neill, although he cautioned: "It is not time to dream... we just watch and listen."
12.07pm: US futures mixed ahead of CPI and big bank earnings
US index futures are distinctly uneven today, with the Dow Jones and S&P 500 seen falling 0.3% and 0.1%, while Nasdaq 100 futures are up 0.4%.
West Texas Intermediate, the US oil price, is up 3.6% at $80.98 a barrel, the highest in just over a month.
US Treasuries are not moving as much as European government bonds so far, but yields did climb yesterday.
The US dollar is down slightly, with the DXY index retreating very moderately from recent 12-month highs.
"Over the past 24 hours, markets have remained firmly driven by developments in the Middle East. Renewed US and Iranian military action, coupled with President Trump's declaration that the ceasefire framework is effectively over, has prompted investors to rebuild the geopolitical risk premium that had largely disappeared in recent weeks," says Capital.com market analyst Daniela Hathorn.
Attention is turning to the US inflation report, which she says "could prove to be the week's defining macro event" as markets determine whether underlying inflation continues to moderate despite renewed geopolitical tensions and higher energy prices.
"A softer-than-expected reading could help reassure investors that the recent jump in oil has yet to feed through meaningfully into broader price pressures, easing concerns over further Fed tightening later this month.
"Conversely, a stronger print would reinforce the higher-for-longer narrative under Chair Kevin Warsh and risk adding to the pressure already facing equities."
Soon, the first big bank earnings will start to flow, with JPMorgan Chase, Bank of America, Goldman Sachs, Wells Fargo and Citigroup all due to report before the opening bell.
11.43am: Dubai plans new port to reduce reliance on Hormuz
Something I missed yesterday is that Dubai is planning a new port and terminal to reduce its reliance on the Strait of Hormuz.
State-owned ports operator DP World is expected to invest hundreds of millions of dollars in the project at Fujairah after recent disruption to the waterway from Iranian missile attacks and strikes on oil tankers.
Jebel Ali will remain the UAE's main port despite the expansion plans.
Dubai plans new port to bypass Strait of Hormuz https://t.co/gPNyzR7twy pic.twitter.com/KIlZK2NY9x — Jim Russell (@ProducerCities) July 13, 2026
11.09am: IQE wins another contract
IQE shares are up 5% after winning a third multi-year AI-related order in as many months, this one valued at roughly $14 million with an unnamed "strategic global technology customer".
The order will be manufactured at IQE's foundry in Newport, Wales, "supports applications serving AI and datacentre markets, where increasing data generation and hyperscale infrastructure requirements are driving demand for high-performance storage technologies", the company says.
Analyst Damindu Jayaweera at house broker Peel Hunt says the mention of high performance storage technologies "suggests that the deal relates to an application beyond what we usually associate with IQE" and a "key takeaway here is the demonstrably broad portfolio of technologies available to IQE that are of strategic value to large OEMs".
10.50am: Movers
Shares in Rank Group are up 4% after the Grosvenor casinos operator said full-year underlying operating profit will reach at least £76 million, putting it more than 11% ahead of analyst consensus as digital growth accelerated in the final quarter.
Casino revenue rose 3% in the quarter despite disruption to international travel linked to the Iran war, with gaming machine revenue up 12%.
Separately, Rank said it expects to book a £5 million provision for a proposed settlement with the Gambling Commission over historical compliance failings, which the regulator has indicated it is minded to accept.
Elsewhere, Genus is up a similar amount after also guiding to full-year profit ahead of market expectations, following stronger second-half trading.
Adjusted profit before tax for the year ended 30 June is expected to be approximately £98 million, ahead of the company-compiled consensus range of £94.3 million to £96.9 million.
The FTSE 250 group received about £111 million in net cash consideration from Beijing Capital Agribusiness following the formation of their Chinese porcine joint venture.
Among small caps, Boohoo/Debenhams said trading remained strong into June and July, helping profit margins improve and debt to be further reduced.
Itaconix shares got a small boost as a first customer supply agreement was secured for its compact plastic-free dish detergent tablet, marking the product’s move towards commercial sales in North America.
10.11am: Oil prices surging, sparking stagflation worries
Oil prices continue to rise, with Brent crude now up 4.8% to $87.29 a barrel, pushing to the highest since the US and Iran agreed to sign the ceasefire MoU.
The FTSE and other European stocks indices are all well in the red, with the London benchmark's 0.5% drop slightly better than the DAX's 0.7% drop and France's CAC 40 decline of almost 1%.
"Europe is once again reduced to being a spectator as the US and Iran trade blows, pushing oil prices higher," says market analyst Chris Beachamp at IG.
"Economies around the globe have had little time to recover from the March round of conflict, and now it seems they must contend with a fresh rise in energy costs.
"The new US blockade merely ramps up the tension and puts markets on notice that the holiday weeks ahead will not be quiet."
Rising oil prices reignite worries about stagflation, adds Saxo's Neil Wilson, who wonders, "can it get a lot worse again in the Middle East?"
Yesterday afternoon Donald Trump said the US blockade was "only stopping Iran’s ships or customers from entering or leaving" and "all other countries will have fair and open use of the Strait", which the attacks on UAE tankers has cast obvious doubts on.
Clearly, the sixth wave of US airstrikes has rattled energy markets. The idea of tolls is another significant concern, and markets may be pricing in this aspect as well.
Wilson says it "seems unlikely at present" that Brent will rise much beyond $90, "unless there is a material breakdown in flows".
Government bond yields have shot higher on renewed inflation concerns, with UK 2yr gilt yields trading 10 basis points higher this morning to 4.452%, the highest in two months, in a sharp repricing of expectations. The 10yr gilt topped 5.05% for the first time since mid-May.
"Rate hikes in the US, UK and EU are now fully priced by September. The latest flare-up won’t show up in today’s key US CPI print, but it’s a given that prolonged low-level conflict and disruption to energy flows will mean stickier inflation."
9.22am: UK needs to cut business energy costs, says CBI
The CBI and Energy UK have urged the incoming Prime Minister to make cutting business energy bills an immediate priority, arguing it could unlock an extra £130 billion of economic activity by 2050.
Backed by analysis from Cornwall Insight and the National Institute of Economic and Social Research, the report said UK companies were being held back by electricity prices that are 45% above the G7 average.
They warned that high energy costs were undermining investment and competitiveness, with four in ten businesses cutting investment because of energy bills.
Existing support schemes are also too narrowly targeted, they said, leaving 2.7 million businesses facing higher electricity costs.
The report calls for the removal of Renewables Obligation and Feed-in Tariff costs from business electricity bills, alongside reform of the Climate Change Levy, which could cut business energy costs by up to 20%, depending on the type of company.
The organisations also want reforms to reduce wider system costs and new incentives to encourage businesses to electrify.
CBI chief economist Louise Hellem said: "With a new Prime Minister coming into office, it’s clear that reducing business energy costs must be a day-one priority. If we want to tackle the cost of living and invest in public services, we need stronger economic growth – and that can’t happen while firms are navigating sky-high energy bills.
"Reliable, affordable energy is essential for all businesses. That starts by removing policy costs from bills, reforming our energy system and shaping the market to make electrification more practical and affordable."
Energy UK chief executive Dhara Vyas said: "The UK cannot afford to let high energy costs continue to damage business investment, reduce our international competitiveness, and worsen the cost-of-living crisis."
8.42am: AstraZeneca sinks to 8-month low
AstraZeneca shares have fallen for the third day in a row, reaching their lowest since November.
There is some news out today but it doesn't seem to have improved the mood for investors, with the Anglo-Swedish drugmaker agreeing to pay $600 million upfront to secure worldwide rights to a lung cancer pill developed by China's Dizal Pharmaceutical.
A further $900 million could also be paid if the treatment hits certain development, regulatory and sales targets.
8.15am: Travel stocks lead FTSE 100 to open lower
The FTSE 100 has slipped lower in early trades, down eight points at 10,490.
Travel stocks are the worst hit by the latest surge in oil prices, with Holiday Inn owner IHG, British Airways parent IAG and Premier Inn operator Whitbread among the leading fallers, down between 3% and 1.7%. Engine maker Rolls-Royce is down over 1% too.
Retailers and housebuilders are also down, with JD Sports, M&S, Barratt Redrow and Persimmon falling 1.3% or more.
On the other side of the coin, BP is the top riser again, up 2.6% on higher oil prices and its earlier update, with other commodity names close behind.
Fellow oil company Shell, British Gas owner Centrica, and a group of heavyweight miners are at the top end of the leaderboard: Glencore, Anglo American, Rio Tinto and Antofagasta.
7.59am: Watches of Switzerland and Robert Walters
Two more sets of numbers before the trading gets underway.
Watches of Switzerland delivered adjusted earnings at the top end of upgraded guidance and backed its outlook for another year of growth, as the luxury watch retailer published annual results a day after reports it had attracted takeover interest.
And recruiter Robert Walters reported lower fees for the first half of the year, in line with expectations, as improving hiring conditions in several key markets helped offset continued weakness in continental Europe.
7.45am: BP cuts debt
BP expects higher oil and gas prices to offset lower production in the second quarter, while net debt is forecast to fall sharply despite a $1 billion impairment charge.
In a trading statement ahead of its second-quarter results scheduled for early next month, the FTSE 100 oil group said net debt is expected to fall to $22-23 billion from $25.3 billion at the end of the first quarter.
7.34am: Retail sales growth softens in heatwave
UK retail sales grew 1.9% year-on-year in June, down from a 3.7% gain in May, according to the BRC-KPMG Retail Sales Monitor.
Like-for-like sales rose 1.7%, down from 3.4% in May, and below the consensus forecast of 2.7%.
Food sales increased 2.8%, below the 12-month average growth of 3.4%, while non-food sales were up 1.2%, above the 12-month average growth of 0.6%.
"Retail sales maintained momentum despite June’s heatwave," says Helen Dickinson, chief executive at the British Retail Consortium.
"While in-store sales were stifled by soaring temperatures, the proportion of sales online was the highest of 2026, bolstered by well-timed promotions."
She says electric fans and paddling pools performed well in the hot weather, while big ticket sales struggled.
KPMG's Linda Ellett adds that amid the strong demand for fans and air con units, some retailers were struggling to restock fast enough, while the men's football World Cup also brought a boost for home electrical sales and food and drink.
"As summer holiday season gets set to fully begin, retailers will be looking to build on the increase in clothing sales for both adults and children that was seen during June."
FTSE 100 Live pre-open
Tuesday morning looks mixed for London's and other blue-chip shares, as oil prices jumped to a month's high after another night of US attacks on Iran.
FTSE 100 futures were not indicating much change, with a tiny gain of around one to two points predicted, continuing the range-bound momentum from the day before, when the index ended exactly one point higher at 10,498.29 with no swings much more than 30 points either way during the session.
Last night, Wall Street began the week on a weaker note, with the tech-heavy Nasdaq leading the decline, tumbling 1.6%, while the S&P 500 dropped 0.8% and the Dow Jones fell 0.3%.
Asian markets are mostly positive this morning, including gains of 0.8% and 0.6% for the Kong Kong and Tokyo benchmarks.
The US carried out a third consecutive night of strikes on Iran after Donald Trump announced a renewed blockade of Iranian shipping and proposed a 20% fee on cargo using the Strait of Hormuz.
Iran rejected the move, with the UAE reporting that Iranian missiles had struck two oil tankers that were transiting the Omani lane of the waterway.
Oil prices have hit their highest level in over a month, with Brent crude oil rising 9.6% yesterday and this morning adding another 1.8% to reach $84.81 a barrel.
At 4:45 p.m. ET today, U.S. Central Command began launching the third consecutive night of strikes against Iran, at the Commander in Chief's direction. These strikes will continue imposing a heavy cost on Iranian forces and degrade their ability to attack innocent civilians and… — U.S. Central Command (@CENTCOM) July 13, 2026
