The FTSE 100 rose on Monday as traders reacted positively to a break in fighting in the Middle East, which sent oil prices sharply lower.
Several upbeat company updates also provided reason to be optimistic and London’s leading index was 0.4% higher at the time of writing.
Oil prices fell, and stocks jumped on developments in the Middle East, where the US has signalled it is willing to return to the negotiating table. Over the weekend, Trump called for a pause in attacks on Iran yesterday after 13 days of strikes appeared to yield little in the way of strategic progress.
“Fresh talk of talks over Iran is raising hopes that this newly acute phase in the Middle East crisis could see some resolution,” explained Susannah Streeter, Chief Investment Strategist, Wealth Club.
Brent oil was down 7% at the time of writing.
Beyond geopolitical events, the FTSE 100 also received a boost from company updates.
AstraZeneca wasn’t among the best performers of the day, but its 1% rise played a part in lifting the FTSE 100 on Monday after reporting clinical results and half-year results.
“Talk of AstraZeneca’s R&D pulse weakening looks a little premature. The second-quarter results should provide some reassurance following the recent knee-jerk reaction to disappointing clinical data from heart disease medicine, Wainua,” said Derren Nathan, head of equity research, Hargreaves Lansdown.
“It’s proving to be a difficult period across the metabolic health franchise, as medicines including Farxiga and Brilinta move beyond exclusivity. But Astra’s leadership in new ways of fighting cancer continues to shine through, with strong performances from the likes of immunotherapy Imfinzi and breast cancer medicine, Enhertu. The focus on high-value speciality medicines has helped deliver an earnings beat, despite only modest top-line growth.”
Vodafone was another notable top performer after releasing a trading statement and highlighting a ‘strong start’ to the year.
Matt Britzman, senior equity analyst, Hargreaves Lansdown, said: “Vodafone has made an encouraging start to the year, with every part of the business growing and profits rising faster than revenue. Stable growth from Germany was key and better than expected, as demand for broadband picked up and income from other network providers helped balance a competitive mobile market. The UK also moved forward, with the integration of Three on track, and early network upgrades already improving speeds for customers.”
Vodafone shares were 4.5% in mid-morning trading.
Momentum is firmly with JD Sports, which was back at the top of the FTSE 100 leaderboard with a 5% gain that took shares to the highest point this year.