The FTSE 100 remains 0.4 per cent down this morning, with the 250 1.2 per cent in the red.
Rather than any reflection of company conditions or financials, this is largely the reaction to global events.
But the UK’s benchmark index hasn’t been as hard-hit as others this morning – with both ends of the see-saw visible in the companies featuring at the top end of the index on this occasion.
“The FTSE 100 did not have long to bask in the glory of reaching a new record close last night with Israel’s military strikes on Iran putting stocks on the back foot globally,” said AJ Bell investment director Russ Mould.
“Concern about an escalating conflict in the Middle East saw oil hit its highest level since January and gold was also in demand for its safe haven qualities. After falls in Asia overnight and Europe this morning, futures markets are pointing to losses on Wall Street later too.
“The surge in crude provided FTSE 100 heavyweights BP and Shell with a boost which, along with gains for precious metals outfits Endeavour Mining and Fresnillo, spared the index from some of the heavier losses seen elsewhere.
“Airline stocks, predictably, were under pressure given the implications for fuel costs. Also in the aviation sector, Boeing shares were weak overnight amid the fall-out from the devastating Indian air crash involving one of its planes.
“Later we will get a fresh reading of US consumer sentiment, to see if the recent improvement, as tariff fears eased, has been sustained.”
Karl Matchett13 June 2025 11:00
GBP – USD rate could continue to rise
Investment bank UBS is foreseeing a rise of the pound to dollar rate up to £1 – $1.38 in the second half of this year.
Following an almost 7 per cent increase in the past six months, it currently stands at $1.3560.
Early 2026 could see an even higher exchange rate, the bank said, pending further global economic conditions.
Karl Matchett13 June 2025 10:40
Inflationary pressures may impact interest rates and taxes
Those oil price rises combined with other domestic events like Rachel Reeves’ spending review means rising UK taxes are inevitable and interest rates could even reverse direction, according to Gervais Williams, from investment manager Premier Miton.
European gas prices also went up at the fastest pace in a month after Israel’s attacks on Iran.
Speaking on BBC Radio 4’s Today programme, he said: “We’ve seen the oil price moving up and that is going to add to inflationary pressures unfortunately.
“It is likely that interest rates cuts will be less, or possibly even interest rate rises to come.
“I think there will be quite a lot of economic uncertainty and I think that will lead to a government shortfall, unfortunately, versus their spending review recently.
“I think that will lead to potentially, unfortunately, to additional UK tax rises later this year.”
Karl Matchett13 June 2025 10:20
Oil: Trump told Israel not to attack Iran
As oil and gold prices climb amid Israel-Iran tensions, it has emerged that the US president’s thoughts were dismissed by the nation who launched last night’s attack.
President Donald Trump warned Israeli Prime Minister Benjamin Netanyahu against attacking Iran during a phone call on Monday, saying negotiations with Tehran over its nuclear program should be allowed to run their course before military options were considered, according to a report.
Iran has since retaliated by launching more than 200 drones at Israel.
Read more on that report here:
Karl Matchett13 June 2025 10:00
Analysts foresee interest rates paused at 4.25%
Next week the Bank of England’s MPC meets on Thursday to give its latest vote on the interest rate.
After being cut to 4.25 per cent, there were plenty who thought that would be that until autumn – but a softening labour market with higher unemployment, slowing wage growth and fewer vacancies gave pause for thought.
Inflation was higher in April than expected and that data for May will come in on Wednesday, just before the MPC decision.
But Barclays analysts expect the MPC will opt to hold interest rates this time around, predicting a 6-3 split in votes, against another 25bp cut.
They maintain expectation for quarterly cuts in August, November and February – taking the interest rate to 3.5 per cent by early 2026 if that’s the case.
Karl Matchett13 June 2025 09:40
FTSE 100 shares: Oil stocks up, airlines down
There are only about a dozen FTSE 100 firms showing positive trading so far this morning, chief among them the big oil duo and a handful of other energy and mining companies.
Defence firm BAE is the biggest riser, 2.63 per cent in the green, with BP (1.8pc), Shell (1.3pc) and Endeavour Mining (1.8pc) the only firms above one per cent so far.
At the other end – and there are plenty in the red – British Airways owner IAG and Easyjet are the biggest fallers, both down more than 3.5 per cent.
JD Sports, Schroders and InterContinental Hotels Group are all among those with falls of more than 2 per cent.
Karl Matchett13 June 2025 09:20
Gold prices on the march higher once more
Oil isn’t the only commodity to be pushing higher on the news of Israel’s attack on Iran.
Gold futures showed a rise of more than 1.5 per cent earlier, before falling back to just over 1.0 per cent now, as investors once more seek safe havens.
Only yesterday, it was revealed that gold had overtaken the Euro as central banks’ second-highest means of creating reserves.
Karl Matchett13 June 2025 09:01
FTSE 100 falls in morning trading
On our European stock markets, there’s an awful lot of red around early this morning.
Karl Matchett13 June 2025 08:45
Oil prices surge after Israel attacks Iran
The price of crude oil shot up early on this morning, following attacks by Israel on Iran which have escalated tensions and the risk of war.
Brent crude oil jumped to just under $76 a barrel before dropping back somewhat, now at $71.65 to show a 4.7 per cent rise.
Crude oil is still 5 per cent up having also hit $75 earlier.
Karl Matchett13 June 2025 08:29
Business and stock markets news live
As is usual, not too many companies are reporting on a Friday.
But of those that are, Lindsell Train Investment Trust reporting their finals will be of interest, given previous outflows and more recent suggestion that investors are returning to active, rather than passive, funds.
Energy firm SSE will also be filing their annual report.
And, if you happen to hold the likes of Unilever, Tritax Big Box REIT or insurance behemoth Admiral Group, you can expect a payment today – they’re all on the list of different dividend payers for Friday. Enjoy.
Karl Matchett13 June 2025 07:55
