London pre-open: FTSE seen flat after Monday mayhem

(Sharecast News) - London stocks were set for a broadly flat open on Tuesday following a volatile session a day earlier, when markets whipsawed as investors mulled mixed messages on the Middle East conflict. The FTSE 100 was called to open unchanged at 9894.

All eyes remain 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.

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 corporate news, B&Q-owner Kingfisher 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.

Housebuilder Bellway reported a "robust" first half performance, with both total housing completions and average selling prices increasing.

Bellway said completions were up 2.7% at 4,702 homes, while average selling prices rose to £322,180. Underlying operating profits grew 1.5% to £159.0m, though Bellway also noted that operating margins had slightly decreased to 10.5%.

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

In a trading update for the 12 months to 28 February, Bytes added that gross invoiced income growth was in double digits, with gross profit of £167m and operating profit of £62m.