The FTSE 100 opened 56.39 points higher at 10,608.44 as a decline in oil prices outweighed escalating Middle East tensions. Brent crude futures fell 0.34% to USD 104.4 per barrel. US West Texas Intermediate (WTI) declined 0.57% to USD 91.33 per barrel.
Sterling rose to USD 1.3239 on Monday, from USD 1.3233 at the time of the London equities close on Friday. Against the euro, the pound faded to EUR 1.1813 from EUR 1.1818.
Gainers & Losers
On the upside, HSBC Holdings rose 2.18% to 1,426.20p, while Convatec Group advanced 2.09% to 224.60p. Standard Life gained 1.95% to 865.00p, and Lion Finance Group climbed 1.86% to 12,610.00p. Standard Chartered increased 1.84% to 2,158.00p, while Babcock International Group added 1.49% to 926.80p.
On the downside, Informa fell 2.68% to 871.60p, while BP declined 1.25% to 579.00p. ICG slipped 0.61% to 1,797.00p, and Rio Tinto dropped 0.52% to 7,089.00p. Shell edged down 0.44% to 3,777.00p, while Bunzl dropped 0.22% to 2,732.00p.
Government Faces GBP 35 Finding Gap
The government has been warned it faces a funding gap of up to GBP 35 billion after a rise in inflation along with high spending. The Institute for Fiscal Studies (IFS) has said that the government would need a ‘top-up’ of billions of pounds, should it want to meet the defence target of 3% of national income by 2030. “A ‘steady-as-she-goes’ Budget is not an option available to the chancellor,” said IFS director Helen Miller.
Hays Declined Amid Hiring Fees Slump
Recruitment firm Hays declined after the group revealed a slump in hiring fees. The group has shed more than 10% to 57p. Richard Hunter, head of markets at Interactive Investor, said, “The fee performance has sorely disappointed investors, as evidenced by the share price reaction at the open. As such, the market consensus of the shares as a hold will likely remain in place, being indicative of the need for investors to see further and more sustained progress.”
Recruiter reported a 3% like-for-like decline in first-quarter net fees, as weak permanent hiring offset stable temporary and contracting demand. On an actual basis, net fees fell 5% in the quarter ended September 30.
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Global Market View
In US, S&P 500 futures rose 0.33% early Monday as investors looked ahead to a busy week of earnings results and inflation data. NASDAQ 100 futures rose 0.45%, while Dow Jones Industrial Average futures rose by 184 points, or 0.35%.
In Asia, Tokyo's Nikkei 225 fell 0.02% to 69.030.92, while China’s Shanghai Composite dipped 0.43%. Hong Kong’s Hang Seng rose 0.15%, and South Korea’s Kospi dipped 3.65%. In India, both the Nifty 50 and the Sensex advanced by 0.62% and 0.75%, respectively.