London open: FTSE falls amid Hormuz standoff; retail sales are concentrated

(Sharecast News) – London stocks fell in early trade on Friday amid continued concerns about the US-Iran standoff in the Strait of Hormuz, as investors digested a surprise jump in UK retail sales.

At 0825 BST, the FTSE 100 was down 0.4% at 10,418.81, while Brent crude was up 0.8% at $105.89 a barrel.

Matt Britzman, senior equity analyst at Hargreaves Lansdownesaid: “Equity markets are sending mixed signals this morning, with UK markets opening slightly lower while US futures edged higher as investors weigh weak geopolitical progress against emerging energy risks. The three-week extension to the Israel-Lebanon ceasefire provides some support to sentiment, but optimism remains cautious amid the ongoing blockade of Stramu warships.

“Oil prices remain firmly elevated, hovering around $100 and above in some cases, as disruptions to this important shipping route continue to raise concerns about global supply and inflation. As geopolitical topics continue to fluctuate – including President Trump’s order for the US Navy to target ships that lay mines in the region – markets appear set to remain active.”

Trump announced Social Reality that the ceasefire between Lebanon and Israel will be extended for three weeks following talks between the two sides at the White House. The American president said the meeting between vice president JD Vance, secretary of state Marco Rubio and the ambassadors of Israel and Lebanon went very well.

“The United States will work with Lebanon to help it defend itself against Hezbollah,” he said.

“The Ceasefire between Israel and Lebanon will be extended for THREE WEEKS. I look forward in the near future to hosting the Prime Minister of Israel, Bibi Netanyahu, and the President of Lebanon, Joseph Aoun. It was a Great Honor to participate in this Historic Meeting.”

Investors also weighed in on Trump’s threat to impose tariffs on the UK if it does not waive the digital services tax on US telecommunications companies. Speaking to reporters in the Oval Office, the US president said: “We’ve been looking at it and we can easily meet that by putting a lot of money in the UK, so they better be careful.

“If they don’t drop the tax, we’re probably going to put a lot of tax on the UK.”

The tax, introduced in 2020, imposes a 2% tax on the income of most US technology companies.

On home shores, figures from Office for National Statistics showed that retail sales rose unexpectedly in March as shoppers rushed for fuel after the outbreak of war in the Middle East.

Retail sales rose 0.7% in March following a 0.6% decline in February, and compared to analysts’ expectations for weaker sales. Gasoline sales rose 6.1% in the month, the highest level since April 2021.

Excluding motor fuel, retail sales were up 0.2% in the month. The level of sales of clothing stores increased, the sellers said it was because of the better weather. Computer and phone stores, as well as non-store retailers, saw an increase in sales volume as retailers reported new product launches, the ONS said.

In the quarter from January to March, retail sales were up 1.6%.

Hannah Finselbach, chief statistician at the ONS, said: “Store sales rose in the three months to March, with trade fairs performing well at the start of the quarter and sales in beauty shops rising as retailers report launching new collections. Online stores also saw strong sales over the period.

“Car fuel purchases rose by a quarter, with dealers saying more drivers were filling up their tanks in March following the start of unrest in the Middle East.”

Britzman noted that most of the energy was driven by a large increase in fuel sales, as well as an increase in hot weather and seasonal spending, but said the underlying picture looked less promising.

“Consumer confidence has started to rise and, with inflation and unemployment expected to rise from here, the risk is that this strength is short-lived, and growth will stall in the coming months,” he said.

“This backdrop should keep the Bank of England cautious next week, and we expect rates to remain at 3.75%, but messaging is likely to remain cautious as policymakers remain wary of inflationary pressures and the risk of second-round effects.”

In equity markets, paper and packaging firm Mondi slide as it reports a decline in first quarter underlying profit as market conditions remain “challenging”.

Underlying EBITDA came in at €212m, down from €290m a year earlier. Mondi added that the Iran war has “increased volatility in an already complex operating environment” that has led to increased costs of energy, raw materials and transportation.

Computacenter compiled after saying full-year results would be “comfortably ahead” of market expectations following a strong performance in the first quarter, well ahead of the previous year and above expectations.

Places to stay in Sainsbury to the blacks after JPMorgan repeated its ‘overweight’ rating on the stock.

In the seller’s notice action, British American cigars combined after two upgrades to ‘overweight’ at Morgan Stanleywhich it said was its top choice in European tobacco.

Market Movers

FTSE 100 (UKX) 10,418.81 -0.37%

FTSE 250 (MCX) 22,690.30 -0.33%

techMARK (TASX) 5,891.98 -0.04%

FTSE 100 – Risers

Sainsbury (J) (SBRY) 346.40p 1.97%

BP (BP.) 579.10p 1.56%

Metlen Energy & Metals (MTLN) 34.73p 1.25%

British American Tobacco (BATS) 4,275.00p 1.23%

Sage Group (SGE) 895.20p 0.97%

Shell (SHEL) 3,327.50p 0.91%

Reckitt Benckiser Group (RKT) 4,820.00p 0.88%

Relx plc (REL) 2,690.00p 0.67%

Experian (EXPN) 2,795.50p 0.58%

Centrica (CNA) 208.70p 0.48%

FTSE 100 – Abawa

Mondi (MNDI) 793.40p -5.11%

Antofagasta (ANTO) 3,745.00p -2.45%

Fresnillo (FRES) 3,352.00p -2.34%

AstraZeneca (AZN) 14,178.00p -1.93%

Smurfit Westrock (DI) (SWR) 2,964.00p -1.69%

Berkeley Group Holdings (The) (BKG) 3,306.00p -1.61%

Glencore (GLEN) 556.90p -1.58%

Melrose Industries (MRO) 500.80p -1.53%

Anglo American (AAL) 3,715.00p -1.43%

St James’s Place (STJ) 1,273.50p -1.39%

FTSE 250 – Risers

Computacenter (CCC) 3,452.00p 4.73%

Oxford Biomedica (OXB) 658.00p 3.30%

IC&C Group (CDI) (CCR) 126.40p 2.93%

Target Healthcare Reit Ltd (THRL) 107.40p 2.48%

RS Group (RS1) 613.00p 2.36%

Schiehallion Fund Limited NPV (MNTN) 1.94p 2.11%

Mony Group (CASH) 174.00p 1.96%

Vesuvius (VSVS) 448.80p 1.72%

Personal Assets Trust (PNL) 546.00p 1.68%

Harbor Energy (HBR) 293.20p 1.60%

FTSE 250 – Fallen

Aston Martin Lagonda Global Holdings (AML) 43.30p -3.08%

Ceres Power Holdings (CWR) 465.40p -3.06%

Sirius Real Estate Ltd. (SRE) 100.00p -2.82%

Shawbrook Group (SHAW) 343.50p -2.56%

WH Smith (SMWH) 560.50p -2.54%

Hochschild Mining (HOC) 636.50p -2.53%

Jupiter Fund Management (JUP) 152.40p -2.18%

Avon Technologies (AVON) 1,680.00p -2.10%

BlackRock World Mining Trust (BRWM) 956.00p -2.05%

Pan African Resources (PAF) 144.72p -2.03%

Market reports