London stocks are set for a marginally weaker open on Monday, with investors watching developments in Ukraine, the latest OPEC+ production increase and a busy economic calendar.
Futures indicate the FTSE 100 will open around 10 points lower, or 0.1%, at 10,672.93. The blue-chip index ended Friday’s session 0.3% higher at 10,679.03.
Geopolitics remained in focus after US President Donald Trump held calls with Russian President Vladimir Putin and Ukrainian President Volodymyr Zelensky ahead of this week’s Nato summit in Ankara. According to the Kremlin, the discussions covered efforts to reach a settlement in Ukraine, as well as Iran and the wider Middle East.
Ukraine, meanwhile, rejected Russian claims that Moscow’s forces had captured the strategic eastern city of Kostyantynivka. Kyiv said the city remained under Ukrainian control, while President Zelensky dismissed Russia’s announcement as false.
Currency markets were steady but slightly softer for sterling. The pound was quoted at USD1.3343 early Monday, down from USD1.3351 at the London equities close on Friday. Against the euro, sterling eased to EUR1.1666 from EUR1.1672.
The euro traded at USD1.1432, down from USD1.1440 late Friday, while the dollar strengthened against the yen to JPY161.95 from JPY161.30.
US markets were closed on Friday for the Independence Day holiday. In Asia on Monday, the Nikkei 225 in Tokyo fell 0.2%, while China’s Shanghai Composite was down 0.3%. Hong Kong’s Hang Seng rose 0.8%, and Australia’s S&P/ASX 200 slipped 0.2%.
Gold was quoted lower at USD4,155.60 an ounce, compared with USD4,167.57 on Friday. Brent crude edged up to USD71.94 a barrel from USD71.76.
Brent crude edged 0.3% higher to $72.30 a barrel this morning, supported by renewed attention on shipping activity in the Strait of Hormuz. Reports suggested that some tankers initially made U-turns before eventually crossing the key oil transit route, keeping geopolitical risk firmly on traders’ radar.
In UK politics, Andy Burnham said he would not call a general election if he became prime minister, instead saying he would work within Labour’s 2024 manifesto while seeking to persuade the party to include electoral reform in its next manifesto.
On the corporate front, easyJet said it had reached an agreement in principle over a potential takeover by US private equity firm Castlelake. The revised proposal values the airline at more than £5 billion, or around USD6.7 billion. The easyJet board said Castlelake’s fifth proposal, worth £6.90 per share, was one it would be minded to recommend if a firm offer is made by the August 3 deadline.
Elsewhere, Next is reportedly preparing a bid for luxury department store brand Harvey Nichols, according to Sky News. The retailer’s pursuit is understood to be at a relatively early stage, with Harvey Nichols put up for sale by owner Dickson Concepts International.
In Monday’s corporate calendar, BTG Consulting is due to report full-year results.
The economic calendar is also busy. In the UK, investors will be watching new car sales data and the construction PMI, while Bank of England Monetary Policy Committee member Catherine Mann is scheduled to speak.
