The FTSE 100 was broadly flat on Monday despite several risk factors that knocked other global equity indices.
London’s leading index was down 0.1% at the time of writing.
Concerns around the Iran/US knocked sentiment globally, with US futures pointing to a lower open and AI stocks set to open in red.
“The AI rollercoaster has set off again, just as a fresh escalation of attacks in the Middle East spread fresh jitters across markets, pushing up energy prices and government borrowing costs,” said Susannah Streeter, Chief Investment Strategist, Wealth Club.
“Equity markets are set for a downbeat start to the week, after sharp losses in Asia, with a flat start for London’s Footsie and Wall Street stocks looking likely to fall at the start of trading.
“US military forces hit dozens of sites in an attempt to wrest control of the Strait of Hormuz from Iran, and Tehran has retaliated by hitting US bases in the region.”
Oil prices rose 2% on the news, driven by developments over the weekend.
Higher oil prices translated into higher share prices for the FTSE 100’s oil majors BP and Shell, which played a leading role in the outperformance of UK stocks.
“Index heavyweights BP and Shell are beneficiaries of a concerted move higher in oil prices. This upwards shift in crude reflects concern about the fate of the fragile truce between Washington and Tehran after renewed strikes over the weekend,” said Dan Coatsworth, head of markets at AJ Bell.
“Add in housebuilders mounting a recovery from the lows reached after last week’s big profit warning from Vistry, and the UK’s flagship index looks decidedly healthy when compared with the sickly performance elsewhere.”
Persimmon shares were 2.8% higher at the time of writing.
Vodafone was the FTSE 100’s top gainer, rising 4.6%. IG was bringing up the rear, down 2.2%.