FTSE 100 Erases Losses

The FTSE 100 recovered from early losses to trade near flat on Monday as hopes of a Middle East de-escalation briefly lifted sentiment, with Brent crude falling more than 5% after President Donald Trump announced a pause on strikes against Iranian energy infrastructure following what he called productive talks on ending hostilities. Oil pared some of its decline after Iran’s semi-official Fars agency said there had been no direct or indirect contact with Washington. Banking stocks reversed sharply, with HSBC, Barclays and NatWest up between 1.9% and 3%, while Rolls-Royce rose over 2% and Rio Tinto more than 1%. Meanwhile, oil majors Shell and BP slipped over 3%, AstraZeneca fell more than 1%, and BAT and BAE Systems dropped 1.5% and 2.7%, respectively.

The FTSE 100 dropped more than 1.5% to below 9770 on Monday, its lowest level in three months, as escalating tensions in the Middle East weighed heavily on markets. The decline followed fresh Iranian strikes across the Persian Gulf ahead of a US deadline to reopen the Strait of Hormuz, triggering broad based selling across the index. Most sectors moved lower, with precious metals miners among the worst performers as gold and silver prices fell, with Endeavour down over 5% and Fresnillo about 4%. Mining stocks including Antofagasta, Glencore and Anglo American also declined, while travel names EasyJet and IAG dropped more than 3%. Rolls Royce fell 5% and BAE Systems 2.8%, while banks including HSBC, Lloyds, Barclays and NatWest posted moderate losses. Shell slipped around 1% and BP was little changed.

The FTSE 100 Index is losing -166 points. Losses were led by Rolls-Royce (-4.87%), B&M European Value (-4.65%) and BT (-4.62%).