London stocks finished little changed on Monday after a volatile trading session, with investors balancing geopolitical concerns against a recovery on Wall Street.
The FTSE 100 edged 5 points higher, or 0.05%, to close at 10,373, recovering from earlier weakness as market sentiment improved during the afternoon.
Housebuilding stocks were among the notable fallers, as investors remained concerned that continued tensions in the Middle East could keep energy prices elevated and push borrowing costs higher for longer.
Despite a difficult start to the day, traders drew encouragement from a strong performance in US markets, where the S&P 500 rose 0.8%. The rebound helped ease fears that Friday’s sharp sell-off could develop into a broader market correction.
However, concerns remain around technology valuations after South Korea’s KOSPI index suffered an 8% decline, highlighting ongoing investor unease over the sustainability of the artificial intelligence-driven rally.
Oil prices remained volatile throughout the session. Brent crude initially surged around 5% following fresh military exchanges between Israel and Iran before retreating as tensions appeared to ease. By the close, Brent was still trading around 1.5% higher at US$94.56 per barrel.
Investors will continue to monitor developments in the Middle East closely, with energy prices, inflation expectations and central bank policy remaining key drivers of market sentiment in the weeks ahead.
