London midday: Stocks dip as utilities take a hit; Israel-Lebanon ceasefire in focus

(Sharecast News) - London stocks were lower by midday on Friday amid caution ahead of a potential resumption of US-Iran peace talks this weekend, and as a 10-day ceasefire between Israel and Lebanon got underway. The FTSE 100 was down 0.2% at 10,566.66, while Brent crude was 3.2% lower at $96.19 a barrel.

Donald Trump announced on Thursday that Lebanon and Israel had agreed a ceasefire. In a post on Truth Social, the US president also said he would be inviting Israeli prime minister Benjamin Netanyahu and Lebanese president Joseph Aoun to the White House for "the first meaningful talks between Israel and Lebanon since 1983, a very long time ago".

"Both sides want to see PEACE, and I believe that will happen, quickly!" he added.

News of the ceasefire was subsequently confirmed by Netanyahu. "We have the opportunity to make a historic deal with Lebanon," he said. However, Hezbollah - which was not part of the ceasefire discussions - said ​the presence of Israeli ‌troops in Lebanon would give the country ​and its people "the ​right to resist," and that any ceasefire must not allow Israel freedom ​of movement within ​Lebanon.

Meanwhile, Trump said at an event in Las Vegas that talks between the US and Iran could resume as early as this weekend. He said war in Iran was "going along swimmingly" and "should be ending pretty soon".

Joshua Mahony, chief market analyst at Scope Markets, said: "The ceasefire between Israel and Lebanon takes hold today, providing the basis for a wider deal with Iran that could potentially reopen the Straits. Crucially while a deal with Lebanon is good news, the conflict has been targeting Hezbollah rather than Lebanon, with Trump calling for the Iranian proxy group to act 'nicely'.

"Given the Israeli ambitions to stake a claim in Southern Lebanon to shield Northern Israel, there will be many who remain highly sceptical over the potential for a long-lasting ceasefire between the two nations.

"Looking ahead, the possibility of an escalation in the conflict seems as likely as a deescalation, with weekend volatility less prevalent with each passing week. There will be many who believe the current negotiations are simply a cover as the US move additional troops into the region ahead of a ground offensive. However, for the time being there is a belief that we are moving in the direction of a potential deal, with Pakistan stating that a US-Iran deal is 'reachable'."

In equity markets, utilities slumped, with SSE and British Gas owner Centrica the worst performers on the FTSE 100 after Chancellor Rachel Reeves said that her and energy secretary Ed Miliband were looking at ways to break the link between electricity and gas prices.

Office space provider Workspace tumbled after saying it expects a "substantial step down" in annual trading profit due to a tough economic environment, including inflation, a lower rent roll and higher interest costs.

On the upside, Intertek continued to gain, having surged on Thursday after saying it rejected a 5,150p per share takeover proposal from Swedish private equity firm EQT.

DiscoverIE rallied after it said trading accelerated sharply in the fourth quarter.

Market Movers

FTSE 100 (UKX) 10,566.66 -0.22% FTSE 250 (MCX) 22,786.94 0.03% techMARK (TASX) 5,959.40 0.35%

FTSE 100 - Risers

Intertek Group (ITRK) 4,941.00p 3.97% The Sage Group (SGE) 933.40p 3.54% Relx plc (REL) 2,748.00p 1.96% BAE Systems (BA.) 2,254.00p 1.94% ICG (ICG) 1,824.00p 1.90% Compass Group 11 (CPG) 27.88p 1.70% London Stock Exchange Group (LSEG) 9,666.00p 1.68% Rightmove (RMV) 457.60p 1.66% Burberry Group (BRBY) 1,153.40p 1.64% Standard Life (SDLF) 754.40p 1.62%

FTSE 100 - Fallers

SSE (SSE) 2,464.50p -6.69% Centrica (CNA) 194.25p -6.52% Anglo American (AAL) 3,513.50p -2.45% Vodafone Group (VOD) 113.95p -2.32% Tesco (TSCO) 483.35p -2.27% Antofagasta (ANTO) 3,680.00p -2.25% Glencore (GLEN) 547.60p -1.85% Next (NXT) 13,220.00p -1.56% Severn Trent (SVT) 3,121.00p -1.51% Marks & Spencer Group (MKS) 354.70p -1.51%

FTSE 250 - Risers

Discoverie Group (DSCV) 638.00p 2.41% Softcat (SCT) 1,342.00p 2.36% GB Group (GBG) 217.40p 2.07% Dr. Martens (DOCS) 68.60p 1.93% B&M European Value Retail (BME) 176.80p 1.84% Baltic Classifieds Group (BCG) 212.00p 1.73% NCC Group (NCC) 124.40p 1.63% Ashmore Group (ASHM) 214.80p 1.61% Close Brothers Group (CBG) 476.00p 1.58% Gamma Communications (GAMA) 908.00p 1.57%

FTSE 250 - Fallers

Workspace Group (WKP) 329.60p -11.83% Bluefield Solar Income Fund Limited (BSIF) 81.40p -4.24% Greencoat UK Wind (UKW) 99.94p -3.44% Drax Group (DRX) 838.40p -3.12% The Renewables Infrastructure Group Limited (TRIG) 66.25p -2.58% Hochschild Mining (HOC) 645.00p -2.20% AEP Plantations (AEP) 1,794.00p -2.16% Currys (CURY) 131.80p -1.94% Pennon Group (PNN) 531.00p -1.85% Foresight Environmental Infrastructure Limited (FGEN) 72.20p -1.63%