FTSE 100 live: London recovers despite jitters over Iran’s attack on Israel

The latest updates on the FTSE 100 and London’s financial markets from City A.M.’s newsroom in the heart of the City of London.

Concerns over a wider conflict in the Middle East appear to have lessened after a Sunday of diplomatic climbdowns – with the oil price, usually an indicator of geopolitical volatility, down so far this Monday morning.

Markets will react to Iran’s attack on Israel over the weekend, with defence stocks in particular likely to be in the spotlight.

It was the Islamic Republic’s first ever direct attack on Israel, but the use of slow-moving drones has been interpreted by many as a sign that Tehran also does not want a major conflict.

In Asia, China’s CSI 300 index rose by 0.9 per cent, while Japan’s Nikkei 225 index, heavily reliant on exports, fell by 1.3 per cent, and the yen weakened by 0.18 per cent against the dollar, hitting its lowest level since 1990. 

In the US, stock futures rose slightly following a significant sell-off on Wall Street. 

Despite geopolitical tensions, Brent crude futures dipped by 0.1 per cent to $90.37 per barrel, and West Texas Intermediate decreased by 0.2 per cent to $85.51 per barrel.  

Escalating tensions drove investors to seek safety, lifting gold prices by 0.51 per cent to $2,356.39 per ounce and boosting the safe-haven dollar by 1.6 per cent from the previous week. 

Bitcoin’s value dropped by nearly 3 per cent to $65,281, falling below $62,000 on Sunday. 

In response to Iran’s drone and missile attack, President Joe Biden urged Israel to exercise restraint, aiming to de-escalate tensions in the Middle East. However, there were differences of opinion within Israel’s leadership regarding the appropriate response to the attack. 

China’s central bank maintained key policy rates steady, aligning with market expectations.  

Meanwhile, activity in China’s stock markets, both domestically and internationally, hit multi-decade lows, reflecting a slowdown in the world’s second-largest economy. Chinese companies raised only $6.4 billion through mainland IPOs, follow-on offerings, and convertible share offerings this year—the lowest level on record. 

In Q1 2024, Apple’s global iPhone shipments dropped by 9.6 per cent, per IDC. Samsung took the lead as the top smartphone supplier, surpassing Apple. 

As earnings season unfolds, investors are closely monitoring the performance of major financial companies such as Goldman Sachs, Bank of America, Blackstone, and American Express. Additionally, all eyes are on Netflix to see if it can sustain its growth trajectory. 

Investors will also focus on US retail sales data on Monday. Fed Chair Powell speaks on Tuesday. Wednesday brings the UK’s February employment report and consumer/producer price data, along with China’s March activity indicators. 

Investors will also watch as India’s 44-day parliamentary election starts on Friday, likely keeping Narendra Modi’s Bharatiya Janata Party in power for the next five years.