London open: FTSE nudges higher in calmer markets

(Sharecast News) - London stocks nudged higher in early trade on Tuesday following a volatile session a day earlier, as investors waited to see if anything comes of Trump's claims that a resolution to the Iran conflict could be on the cards. At 0845 GMT, the FTSE 100 was up 0.1% at 9,904.48. Brent crude was 1.7% higher at $101.64 a barrel and West Texas Intermediate was up 2.5% at $90.30.

All eyes remained firmly on developments in the Middle East after Donald Trump said on Monday that the US was postponing "any and all" military strikes against Iranian energy infrastructure following "very good and productive conversations" about a resolution to the hostilities in the Middle East. However, Iran subsequently denied any talks had taken place.

His comments came just a day after the US president threatened to "obliterate" Iran's power plants if it did not reopen the Strait of Hormuz within 48 hours.

Emma Wall, chief investment strategist at Hargreaves Lansdown, said: "According to President Donald Trump, preliminary truce talks have begun with Iran. According to Iran, he's living in la-la-land and the talks never happened. But the markets love hope, and the prospect of a ceasefire was enough to push Brent crude oil down 11% yesterday to below $100 a barrel for the first time in weeks.

"But the Iran denial, and a report that the UAE and Saudi Arabia are considering entering the war, has sent oil back up to $103. It's foreign-policy-by-soundbite, but it is President Trump's speciality. Announcing plans to extend the previous 48-hour deadline to open the Strait of Hormuz, or else, by five days, he sent a clear signal to the market that the US is ready to make a deal. Just a couple of days earlier, Trump had outlined plans to target Iran's power plants, and Iran in turn had threatened energy and water infrastructure across the Middle East."

She added: "Investors should be mindful that one day does not a market make, and that these are whipsaw markets, near impossible to trade with conviction. But this is the most consolatory tone that President Trump has struck since the beginning of the month."

In equity markets, BP and Shell gushed higher amid firmer oil prices.

B&Q-owner Kingfisher gained as it forecast further growth despite a "mixed" consumer environment, as it posted a jump in full-year profits.

The retailer - which also owns Screwfix in the UK and Castorama and Brico Depot on the continent - saw sales edge up 0.2% in the year to 31 January to £12.9bn on a constant currency basis. Underlying sales, however, which strip out the impact of acquisitions and disposals, improved 1.4%, driven by a strong performance in the UK, while adjusted pre-tax profits jumped 6% at £560m.

On the downside, Trustpilot tanked after Advent Global Opportunities sold just over 21.59m shares in the company in a placing, raising about £46m. The shares were placed at 214p each, with Deutsche Numis and JP Morgan acting as joint bookrunners in connection with the placing.

Bytes Technology tumbled as it said annual earnings would be in line with expectations after its performance strengthened in the second half, but that it expects 2027 operating profit to be broadly flat on the back of higher costs after the completion of strategic projects.

Housebuilder Bellway slid as it posted a rise in first-half profit and completions and lifted its full-year volume output guidance, but trimmed its operating margin expectations for the year.