Stock prices opened mixed in London on Monday, as UK house price growth sped up in May, while investors await a UK manufacturing purchasing managers’ index reading.
Meanwhile overseas, as Swissquote’s Ipek Ozkardeskaya put it: ‘Trade tensions are heating up again. Not only does Donald Trump seem unfazed by growing questions around the legitimacy of his tariffs, but he also accused China of violating the trade truce they signed in Geneva earlier this month...China responded, accusing the US of imposing ’discriminatory restrictions’.’
She continued: ‘Cherry on top, the US announced an increase in tariffs on steel and aluminium imports to 50%, from the 25% previously in place...[which] will likely throw some cold water on negotiations between the EU and the US. The EU’s metal exports to the US represent around 1% of its total exports, but the move could still have severe consequences for Europe’s already struggling industrial sector.
The FTSE 100 index opened up 4.94 points, 0.1%, at 8,777.32. The FTSE 250 was down 10.42 points, 0.1%, at 21,017.59, and the AIM All-Share was up 0.070 points at 746.75.
The Cboe UK 100 was down 0.1% at 872.51, the Cboe UK 250 was down 0.1% at 18,551.62, and the Cboe Small Companies was up 0.1% at 16,759.19.
Hiscox was near the top of the FTSE 100, gaining 1.4% after the insurer announced a tender offer for outstanding notes worth £275.0 million due 2045.
GSK rose 0.5%.
The London-based pharmaceuticals company announced the US Food & Drug Administration has accepted for review the new drug application for its liver disease treatment, linerixibat.
It said the application is based on positive data from the Glisten phase 3 trial, presented in May at the European Association for the Study of the Liver Congress.
Convatec was among the laggers, down 1.4%. RBC cut the London-based medical products and technologies company to ’sector perform’ from ’outperform’, increasing the price target to 320 pence from 305p.
Among smaller caps, Facilities by ADF lost 1.6%.
The company said trading in 2025 remains in line with expectations, but proposed a revised final dividend of 0.5 pence per share for 2024, for a 1.0p total.
Previously, it said it had recommended an unchanged final dividend of 0.90 pence per share, giving an unchanged total dividend of 1.40p.
The UK will build up to 12 new nuclear-powered attack submarines and invest £15 billion in its warhead programme, Prime Minister Keir Starmer will announce on Monday as the government unveils its strategic defence review.
Also, UK house price growth accelerated in May, amid ’supportive‘ underlying conditions for home buyers, according to an index.
Property values increased by 0.5% month-on-month in May, following a 0.6% fall in April, taking the average UK house price to £273,427, Nationwide Building Society said. The typical UK house price increased by 3.5% annually in May, compared with 3.4% in April.
Robert Gardner, Nationwide’s chief economist, said: ’Despite wider economic uncertainties in the global economy, underlying conditions for potential home buyers in the UK remain supportive.‘
In European equities on Monday, the CAC 40 in Paris was down 0.4%, while the DAX 40 in Frankfurt was down 0.2%.
The pound was quoted at $1.3547 early on Monday in London, higher compared to $1.3476 at the equities close on Friday. The euro stood higher at $1.1425, against $1.1348. Against the yen, the dollar was trading lower at JP¥142.93 compared to JP¥144.23.
In Asia on Monday, the Nikkei 225 index in Tokyo was down 1.3%. In China, the Shanghai Composite was closed on Monday. The Hang Seng index in Hong Kong was down 0.7%. The S&P/ASX 200 in Sydney closed down 0.2%
In the US on Friday, Wall Street ended lower, with the Dow Jones Industrial Average down 0.1%, the S&P 500 down less than 0.1% and the Nasdaq Composite down 0.3%.
The yield on the US 10-year Treasury was quoted at 4.44%, widening from 4.41%. The yield on the US 30-year Treasury was quoted at 4.99%, widening from 4.92%.
Brent oil was quoted higher at $64.25 a barrel early in London on Monday from $62.53 late Friday.
Gold was quoted higher at $3,353.39 an ounce against $3,286.33.
Still to come on Monday’s economic calendar are manufacturing PMI readings from the UK and the US.
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