The FTSE 100 started the week higher after Donald Trump said he planned to restart talks with Iran.
The index rose in very early trade before fading back to trade flat at the time of the writing.“Global equities have kicked off the week on the front foot, picking up right where Friday’s session left off,” said Daniela Hathorn, analyst at Capital.com.
“US futures are pointing to a green open as the weekend delivered the de-escalation traders had been hoping for.
“President Trump confirmed peace talks with Iran will resume, having called off the strikes that had rattled markets into Friday’s close, with Gulf allies including Saudi Arabia said to have pushed hard for diplomacy over confrontation.”
Brent oil was down 4.7% and WTI lost 5.8%.
But while European and US indices surged higher, the FTSE 100 was constrained AstraZeneca which 5% wiping a significant number of points from the index.
“The FTSE 100’s advance was constrained by a negative reaction to AstraZeneca’s reported interest in a merger with Bristol Myers Squibb and by weakness in its oil and gas heavyweights BP and Shell,” said says AJ Bell investment director Russ Mould.
“However, aviation-linked stocks and housebuilders made solid progress in London. Other European markets chalked up material gains and futures pointed towards a positive showing on Wall Street later.”
Housebuilders were among the top risers as investors cheered falling oil prices and reducing chances of interest rate cuts.
Persimmon was 3.7% higher and at the top of the FTSE 100 leaderboard at the time of writing.
Tobacco shares among the worst performers demonstrating the risk on tone to trade on Monday.