The UK’s FTSE 100 closed 0.42% higher on Monday, supported by a flurry of earnings and corporate activity, and an improvement in investor sentiment after the US and Iran paused attacks against each other, easing concerns over a further escalation in Middle East tensions.
“After 13 consecutive nights of US strikes aimed at degrading Iran’s ability to threaten commercial shipping, Washington has refrained from further attacks since late Friday, while Tehran has publicly stated that it has also suspended retaliatory operations. The pause falls short of a formal ceasefire, but both sides are presenting it as an opportunity for diplomacy, with Omani-mediated talks continuing over the weekend focused on navigation through the Strait of Hormuz,” Deutsche Bank Research said.
In corporate news, British telecommunications group Vodafone Group (VOD.L) led the top risers of the blue-chip index after it reported growth in total revenue for the fiscal first quarter ended June 30 and updated its outlook for fiscal 2027. The company’s shares were up 4.84% at closing.
“The market is expected to respond positively to this release. However, there is no longer an upside on the stock, which has returned to its highs from last spring following Xavier Niel’s plan to acquire a 16.2% stake in Vodafone from the Emirati E& group for c.(Euro)5.1bn (equivalent to 112.5p). The stock offers in fact a highly demanding low dividend yield of c.3.5%,” commented Baader Europe.
AstraZeneca (AZN.L) gained 1.72% after its first-half attributable profit grew to $5.59 billion from $5.37 billion earlier, while revenue jumped to $30.67 billion from $28.05 billion. The drugmaker also confirmed its 2026 outlook, including mid- to high-single-digit growth in total revenue.
Meanwhile, DCC Energy’s (DCC.L) board agreed to the terms of a takeover proposal of 67.9722 pounds sterling per share from Bridgepoint Group’s (BPT.L) Energy Capital Partners Management and investment giant KKR. The proposal values the target at 5.75 billion pounds. At closing, DCC rose 0.88%, while Bridgepoint grew 4.79%.
On the economic front, the Confederation of British Industry distributive trade survey’s retail sales balance improved to -26% in July from -54% in the previous month. Analysts expected -45% for the month. “Distribution firms will welcome the Prime Minister’s focus on supporting local high streets and will be looking for broader business rates reform to address one of the key constraints on investment and growth,” CBI lead economist Martin Sartorius said.
Investors will now turn their attention to UK money supply data for June on Wednesday, followed by the Bank of England’s interest rate decision on Thursday.
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