- Footsie up 0.27% at 10,860.83, 29.74 points higher than the previous close
- Gains were concentrated in banking, personal care and fossil fuels
- EDF is reportedly in talks to acquire So Energy, majority-owned by Ireland's ESB
- The EU is to invest €200 million in Greenland this year
2:30 pm: FTSE 100 rises as energy stocks gain
The FTSE 100 was up 0.27% at 10,860.83, gaining 29.74 points from the previous close of 10,831.09.
The index traded between 10,794.17 and 10,863.16 during the session, leaving it close to the day's high.
The strength was concentrated in areas including banking, personal care and fossil fuels, while the relatively narrow breadth suggests the index's rise was not broadly based.
Admiral remained the standout riser, while BP continued to benefit from elevated oil prices.
Rising oil prices, escalating conflict in the Middle East and political uncertainty in Europe kept investors cautious on Monday, with stocks drifting lower ahead of key US inflation data due later this week.
Tensions around the Strait of Hormuz added to the pressure.
Tehran said it would announce a restricted zone outside the strategic waterway in the coming days, after US forces struck three Iranian tankers and Iran's Islamic Revolutionary Guard Corps launched ballistic missiles at two US Navy ships.
Sterling was trading at $1.3538 against the dollar, up 0.0017 on the day, a gain of around 0.13%.
The modest rise came even as broader markets weighed the inflationary implications of Brent crude trading above $97 a barrel amid renewed Middle East shipping tensions.
Oil prices could climb to as much as $120 a barrel if attacks on Middle East shipping escalate, Goldman Sachs warned.
Daan Struyven, co-head of global commodities research at Goldman Sachs, told Bloomberg TV that recent events indicated a growing risk that shipping disruptions could spread and intensify.
Reuters reported French state-owned utility EDF EDF is in talks to acquire UK electricity supplier So Energy, majority-owned by Ireland's ESB.
The deal would add around 300,000 customers to EDF's existing UK base of roughly 5 million and expand its presence in residential energy and solar installation.
On the other hand, the EU is to invest €200 million in Greenland this year and in 2027 under a new partnership package focused on digital connectivity, sustainable mining, energy, tourism, education, fisheries and housing.
European Commission President Ursula von der Leyen said the deal underlined Greenland's strategic importance to the EU.
Ferrexpo PLC (Ferrexpo PLC (LSE:FXPO)) FXPOORD 10P instrument surged 19.31% to 34.10, after trading as high as 45.70, from a previous close of 28.58.
1:30 pm: FTSE 100 holding on
The FTSE 100 is holding on to a modest gain, up around 0.2% at 10,852 points, after an early dip.
The move is relatively resilient given the weakness beneath the headline index: the market is being supported by strength in several large blue-chip names, particularly energy stocks.
A number of consumer, media and mining shares are weighing on the broader market.
Oil prices approached six-week highs after US strikes on Iranian oil tankers.
Higher oil prices are helping BP and Shell, although the inflationary implications of more expensive crude remain a concern for the wider market.
UK permanent staff placements rose slightly in August, the first increase since September 2022, according to the KPMG and REC UK Report on Jobs.
Temporary staff billings expanded for a fifth consecutive month, with growth at its second-fastest pace in more than three years.
Starting salaries also rose at their quickest rate since January, while overall demand for staff fell for a 34th consecutive month.
Jaguar Land Rover said on Monday it would cut around 4,000 jobs globally over the next two years, targeting approximately £1.7 billion in savings and lowering its break-even point towards 300,000 vehicles.
The company said the cuts were not expected to affect direct manufacturing jobs and would be achieved through voluntary means wherever possible.
The Tata Motors-owned carmaker employs about 30,000 people in the UK, out of a global workforce of around 40,000, according to Reuters.
11.30 am: Standard Life leads as FTSE edges higher
The FTSE 100 continued to inch upward during late-morning trading, reaching 10,843.56 - around 12 points, or 0.1%, above Friday’s close.
Standard Life led the blue-chip risers, advancing 2.3% to 953.5p after reporting stronger first-half earnings, cash generation and assets under administration.
The retirement savings group said adjusted operating profit increased 25% to £563 million, while total cash generation rose 15% to £900 million. Operating cash generation advanced 6% to £745 million.
Assets under administration increased 5% to £333 billion and the interim dividend was lifted 2.6% to 28.05p per share.
Standard Life said it remained on track to deliver its 2026 targets, including adjusted operating profit of around £1.1 billion. Its leverage ratio declined to 29%, achieving its approximately 30% year-end target ahead of schedule.
The proposed £2 billion acquisition of Aegon UK also remained on course to complete around the end of 2026, subject to regulatory approval. Standard Life interim results
Diploma followed with a 1.9% gain, while Admiral Group rose 1.7% and AstraZeneca added 1.3%.
Energy majors also supported the index as oil prices remained elevated, with BP gaining 1.5% and Shell rising 1.1%.
The advance was kept modest by losses elsewhere. Diageo fell 2.3%, Fresnillo declined 2.2%, and Haleon, Informa, Entain and Sage each lost more than 1%.
The mixed performance left London’s benchmark only slightly higher, although the move represented a steady recovery from an earlier session low of 10,794.17
10.45 am: FTSE turns green as smaller companies outperform
The FTSE 100 nudged into positive territory during late-morning trading, while smaller companies continued to outperform the broader London market.
The blue-chip index was up 6 points, or 0.06%, at 10,837.10, having traded below Friday’s close earlier in the session. The FTSE 350 and All-Share were both 0.04% higher, although the FTSE 250 remained 0.1% lower at 24,559.53.
Smaller-company indices showed greater resilience. The FTSE SmallCap was 0.22% higher at 8,195.72, while the AIM All-Share gained 0.2% to 801.53.
SigmaRoc led the AIM advance, jumping 10.5% to 141.8p following a strong set of interim results.
The lime and minerals producer reported a 2.5% increase in first-half revenue to £523.1 million, while underlying earnings rose 11.3% to £131.2 million. Its underlying margin improved by two percentage points to 25.1%, with earnings per share up 12.2%.
Net debt fell 7.2% to £462.6 million and leverage declined to 1.66 times. The company said second-half trading was running ahead of the previous year and maintained its full-year expectations. SigmaRoc interim results
Braemar topped the FTSE SmallCap risers with a 4.6% gain. BlackRock Frontiers Investment Trust rose 3.9%, CT UK High Income Trust added 3.5% and The Smarter Web Company (AQSE:SWC) advanced 2.9%.
Energy companies were also prominent, with Afentra up 3.2%, EnQuest gaining 2.6% and Serica Energy rising 1.1%.
Among blue chips, Standard Life climbed 1.9%, followed by Diploma, up 1.8%, and Admiral Group, 1.7% higher. AstraZeneca added 1.5%, while BP and Shell rose 1.1% and 0.9%, respectively.
The gains left the FTSE 100 marginally higher, but the stronger performance among SmallCap and AIM shares pointed to greater investor appetite further down the market.
8:00 am: FTSE opens lower as investors digest US jobs shock
London stocks opened lower on Monday as investors weighed surprisingly strong US employment figures against another rise in oil prices, with both developments adding to concerns that global interest rates could remain higher for longer.
The FTSE 100 was around 10,810 shortly after the open, down roughly 0.2%, while the FTSE 250 was marginally lower around 24,568, according to London Stock Exchange data.
Friday's US employment report has complicated the interest-rate outlook heading into the new week. Non-farm payrolls increased by 162,000 in August, while unemployment remained at 4.1%, official figures showed. The jobs increase was far above forecasts of roughly 65,000 and has revived expectations that the Federal Reserve could raise rates again this month.
US stocks reacted negatively on Friday, with the S&P 500 losing 0.4% and the Dow falling 0.5% as Treasury yields moved higher.
The rate picture is being complicated further by energy prices.
Brent crude was up 0.78% at $97.03 a barrel in early European trading, according to the latest commodity prices, while WTI added 0.55% to $91.98.
Oil has been supported by renewed US-Iran hostilities involving vessels around the Strait of Hormuz, raising fresh concerns about disruption to one of the world's most important energy transit routes. Reuters reported Brent had gained almost 10% last week as tensions escalated.
That combination of a resilient US labour market and expensive energy is particularly important for investors because higher fuel costs could keep inflation elevated just as central banks consider whether further monetary tightening is required.
Attention will therefore turn increasingly towards US inflation figures later this week, while the European Central Bank is also due to make its latest interest-rate decision on Thursday.
Precious metals reflected the shift in rate expectations, with gold down 0.72% at $4,444.31 an ounce, while silver fell 0.65%. Higher interest rates and bond yields tend to make non-yielding gold less attractive.
Asian equities provided a more positive signal overnight. The MSCI Asia-Pacific index advanced as technology stocks rallied, with investors also interpreting the strong US employment figures as evidence of resilient economic growth.
In London, however, consumer and healthcare stocks were among the early drags. Smith & Nephew fell 1.79%, Unilever lost 1.72% and Diageo dropped 1.48%, while Admiral Group led the relatively short list of FTSE 100 risers with a 1.63% gain.
Trading could become quieter later in the session, with US equity markets closed on Monday for Labor Day, leaving London without the usual Wall Street lead.
7.00 am: London set for cautious start after strong US payrolls
The FTSE 100 is expected to make a subdued start on Monday as investors balance stronger energy prices and an Asian semiconductor rally against renewed interest-rate concerns.
Futures indicate that London’s blue-chip index will open broadly unchanged. The FTSE 100 finished Friday virtually flat at 10,831.09, leaving it 0.06% higher over the week.
Australia provided a mixed lead, with the S&P/ASX 200 closing around 6 points, or 0.1%, higher. Energy and materials gained approximately 1% and 0.6%, respectively, as rising oil and commodity prices supported resource companies. Technology shares fell about 2.3%, however, after Friday’s decline on the Nasdaq and a further rise in bond yields.
The contrasting sector performance may be repeated in London, where BP, Shell and some miners could provide support while higher borrowing costs place pressure on technology and other growth-sensitive shares.
Elsewhere in Asia, Japan’s Nikkei gained around 1.7% and South Korea’s Kospi advanced 3.3%, led by semiconductor companies. Samsung Electronics (KRX:005930, LSE:BC94) (Samsung Electronics (KRX:005930, LSE:BC94), Samsung Electronics (KRX:005930, LSE:BC94)) climbed 4.5% and SK Hynix rose 6.2% amid continued optimism over demand for artificial-intelligence hardware.
The mood was weaker in China, with Hong Kong’s Hang Seng falling 1.1% and the Shanghai Composite declining 0.2%.
Sentiment remained influenced by Friday’s stronger-than-expected US employment report. The world’s largest economy added 162,000 jobs during August, compared with forecasts of approximately 53,000 to 56,000.
The unemployment rate remained at 4.1%, while the June and July payroll figures were revised higher by a combined 55,000. Average hourly earnings increased 0.3% during the month and 3.1% from a year earlier, according to the US Bureau of Labor Statistics.
The figures pushed the estimated probability of a Federal Reserve interest-rate increase at its September meeting to approximately 58%.
Wall Street closed lower on Friday as Treasury yields rose. The S&P 500 declined 0.4% to 7,718.60, the Dow Jones fell 0.5% to 53,414.25, and the Nasdaq Composite slipped 0.3% to 26,506.99.
US stock and bond markets will remain closed on Monday for Labour Day, potentially leaving European trading volumes lighter than usual.
Oil prices extended their gains following fresh attacks involving US and Iranian forces in the Gulf. Tehran has also said it plans to announce a restricted zone outside the Strait of Hormuz.
Brent crude approached $97 a barrel, having gained almost 10% last week, while West Texas Intermediate traded around $92. The advance could support London’s energy heavyweights but adds to concerns that inflation will keep global interest rates elevated.
Spot gold was holding near $4,426 an ounce after falling in response to the US jobs report, while copper eased to approximately $6.55 per pound. Sterling was little changed at around $1.351.
On the corporate front, Ashmore Group (LSE:ASHM) (Ashmore Group (LSE:ASHM)) has published full-year results, while Team Internet, SigmaRoc and Standard Life are among those reporting interim figures. Ferrexpo could also attract attention after announcing the restart of production at its Ukrainian operations.
Gamma Communications may be another early mover following reports that Dutch private equity firm Waterland is preparing a higher offer to challenge the £1.02 billion takeover proposal already accepted from Epiris.
With Wall Street closed, London’s early direction is likely to depend on oil prices, government bond yields and whether support for energy and mining shares can offset pressure on rate-sensitive sectors.
