UK stocks, pound rebound

Despite the bounce, the FTSE 100 closed slightly below the flatline

UK stocks and the pound rebounded alongside European peers, staging a relief rally after early losses as U.S. President Donald Trump announced a five-day pause on strikes against Iran’s energy infrastructure following “productive” talks with Tehran.

The move comes after Trump announced a 48-hour deadline to Tehran over the weekend to fully open the Strait of Hormuz, while Iran offered only a selective reopening to neutral vessels.

Despite the bounce, the FTSE 100 closed slightly below the flatline. The blue-chip index FTSE 100 dropped 0.3 per cent and the British GBP/USD added 0.4 per cent against the dollar to $1.3396. The DAX index in Germany advanced 1 per cent, while the CAC 40 in France rose 0.8 per cent.

Shares of Applied Nutrition PLC dropped more than 7 per cent on Monday after the UK supplements group warned of softer Middle East volumes due to the Iran war, while maintaining its full-year revenue guidance.

British Prime Minister Keir Starmer on Monday condemned the overnight burning of ambulances serving London’s Jewish community as a deeply disturbing antisemitic attack, saying such hatred has no place in society.

This is a deeply shocking antisemitic arson attack, Starmer said in a post on X. My thoughts are with the Jewish community who are waking up this morning to this horrific news. Antisemitism has no place in our society.

Starmer plans to discuss the economic implications of the crisis with top ministers, including Rachel Reeves, Yvette Cooper and Ed Miliband, along with Bank of England Governor Andrew Bailey, the Treasury said.