The London Stock Exchange opened in negative territory on Monday, June 23, 2025, as investors took a cautious stance amid growing geopolitical jitters in the Middle East. The FTSE 100 dropped approximately 0.2%, with the FTSE 250 logging a similar modest decline.
Broader European markets also reacted, with Germany’s DAX down around 0.2% and France’s CAC 40 slipping approximately 0.3% in early trade. Analysts describe the mood as “tension, not trauma,” as investors monitor the potential fallout of recent US strikes in Iran.
Winners and losers
- Oil & defence names such as BP and Shell rallied, rising between 1–2%, on expectations that rising oil prices could benefit energy-linked sectors.
- Airline stocks were under pressure: easyJet dropped around 2.2–2.5% and IAG lost about 1.8–2.2%, hit by fears of fuel cost pressures and potential travel disruption.
- Spectris led gains in the FTSE 250, surging nearly 15% after private equity firm Advent made a £3.8 billion takeover offer, though rival interest from KKR offers upside potential.
Market drivers and risks
Oil climbed to the high $70s per barrel, with Brent reaching around $77.50–$78.00 amid concerns over potential disruption to shipping through the Strait of Hormuz.
Metals on the London Metal Exchange such as aluminium also rose (~0.8%) due to higher energy and input costs.
The pound weakened slightly to around $1.3436, while the dollar edged higher amid safe‑haven demand.
What’s next for the day?
As trade progresses, investors will continue watching developments in the Middle East closely—a deeper escalation could unsettle markets further. Additionally, UK-focused corporate news (takeover battles, earnings), as well as European inflation and manufacturing data, might shape sentiment. Should tensions persist, energy-related stocks may maintain their strength, while cyclical sectors like travel could remain under pressure.
Monday’s tone in London is one of cautious trading—markets are digesting headline risk, with defensive sectors outperforming and cyclical names lagging, while investors await fresh geopolitical or economic inputs.
newshub finance
Recent Comments