London open: Stocks nudge lower; Israel-Lebanon ceasefire in focus

(Sharecast News) - London stocks nudged lower in early trade on Friday, with investors erring on the side of caution ahead of the potential resumption of US-Iran peace talks this weekend, and as a 10-day ceasefire between Israel and Lebanon got underway. At 0825 BST, the FTSE 100 was down 0.1% at 10,581.75, while Brent crude was 0.8% lower at $98.62 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".

Rabobank said: "Should the Israel-Lebanon ceasefire hold, we may see an extension of the current US-Iran ceasefire by an additional two weeks, as of next Tuesday.

"While many anxiously monitor the situation to see how long this 10-day ceasefire might last, EU and GCC officials have predicted that a deal between the US and Iran may take close to six months as counterparties argue back and forth on the subject of enriching uranium and developing nuclear capabilities."

Investors were also mulling the latest quarterly results from US streaming giant Netflix, whose shares tumbled in after-hours trading on the back of disappointing revenue guidance and news that co-founder and chair Reed Hastings is stepping down.

Kathleen Brooks, research director at XTB, said: "This was unexpected news, and Hastings is seen as the DNA of the company. His vision changed the way the world watches television, and his disruptive style of leadership has been a lesson for American corporate culture this century.

"Hastings' departure from Netflix has jolted investors at an interesting time for the company. After pulling out of the race to buy Warner Brothers, Netflix may keep its balance sheet tough and flexible, but it will also face greater competition from a more muscular Paramount."

There wasn't much in the way of UK corporate news, but 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.

The company added that it would return its dividend payout policy to cover of 1.2x earnings from fiscal 2025/26 onwards.

Burberry was the top gainer on the FTSE 100, recovering some ground after tumbling earlier in the week following weak updates from Kering and Hermes.

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

Market Movers

FTSE 100 (UKX) 10,581.75 -0.08% FTSE 250 (MCX) 22,762.80 -0.07% techMARK (TASX) 5,946.81 0.14%

FTSE 100 - Risers

Burberry Group (BRBY) 1,154.80p 1.65% Intertek Group (ITRK) 4,812.00p 1.49% Informa (INF) 825.20p 1.15% Reckitt Benckiser Group (RKT) 5,064.00p 1.12% Airtel Africa (AAF) 354.80p 0.97% Flutter Entertainment (DI) (FLTR) 8,102.00p 0.72% InterContinental Hotels Group (IHG) 140.50p 0.64% International Consolidated Airlines Group SA (CDI) (IAG) 387.30p 0.62% Compass Group 11 (CPG) 27.57p 0.60% IG Group Holdings (IGG) 1,519.00p 0.59%

FTSE 100 - Fallers

SSE (SSE) 2,566.00p -2.97% Centrica (CNA) 200.50p -2.70% Fresnillo (FRES) 3,493.00p -1.63% Antofagasta (ANTO) 3,694.50p -1.56% Anglo American (AAL) 3,561.00p -1.26% JD Sports Fashion (JD.) 75.68p -0.73% Lion Finance Group (BGEO) 11,170.00p -0.71% Rolls-Royce Holdings (RR.) 1,242.00p -0.66% Tesco (TSCO) 491.55p -0.58% Prudential (PRU) 1,109.50p -0.54%

FTSE 250 - Risers

Rank Group (RNK) 112.60p 4.26% Schroder Oriental Income Fund Ltd. (SOI) 402.50p 2.94% B&M European Value Retail (BME) 174.00p 2.47% Mitchells & Butlers (MAB) 275.50p 2.42% Wickes Group (WIX) 224.00p 2.28% Oxford Biomedica (OXB) 633.00p 2.10% Harbour Energy (HBR) 279.60p 2.04% Close Brothers Group (CBG) 475.00p 1.63% SDCL Efficiency Income Trust (SEIT) 44.30p 1.61% The Schiehallion Fund Limited NPV (MNTN) 1.92p 1.59%

FTSE 250 - Fallers

Workspace Group (WKP) 325.20p -11.67% Hays (HAS) 31.88p -2.27% The Renewables Infrastructure Group Limited (TRIG) 66.85p -1.92% Hochschild Mining (HOC) 648.50p -1.82% Shawbrook Group (SHAW) 360.75p -1.78% Greencoat UK Wind (UKW) 101.70p -1.74% Drax Group (DRX) 850.40p -1.73% JPMorgan Japanese Inv Trust (JFJ) 748.00p -1.45% Pan African Resources (PAF) 155.04p -1.39% NB Private Equity Partners Ltd. (NBPE) 1,420.00p -1.25%