London close: Stocks bounce back from Middle East concerns
By Josh White
Date: Monday 16 Jun 2025
(Sharecast News) - London equities ended higher on Monday, with investors largely brushing off concerns over the escalating conflict between Iran and Israel, now in its fourth day.
The FTSE 100 index rose 0.28% to close at 8,875.22 points, while the FTSE 250 advanced 0.51% to 21,284.02 points.
In currency markets, sterling was last up 0.18% on the dollar to trade at $1.3595, but slipped 0.13% against the euro, changing hands at €1.1733.
"Friday's outbreak of volatility has given way to a rebound in risk appetite, as investors breathe a sigh of relief that the Middle East conflict now underway remains contained," said IG chief market analyst Chris Beauchamp.
"This might seem like excessive optimism, given the potential for the war to spiral into a new and much more dangerous phase.
"The sigh of relief uttered by equities was buttressed by reports that Tehran was seeking an end to hostilities, a sign perhaps that Israel's 'shock and awe' campaign has had real impact in Iran's corridors of power."
Beauchamp noted that oil prices slipped back in afternoon trading as tensions eased across markets.
"Unpleasant as it is to watch two sides trade missiles on a sustained basis, so long as the Straits of Hormuz remain quiescent it is hard to envisage a scenario where Friday's gains can be sustained."
UK house prices decline, NY manufacturing index falls
In economic news, UK house prices declined in June for the first time this year, easing by 0.4% after stronger-than-expected gains in April and May, according to Rightmove's latest index.
The drop contrasted with the typical seasonal rise of 0.4% seen in June over the past decade.
Rightmove said the average asking price now stood at £378,240, attributing the fall to a delayed market response following changes to stamp duty thresholds in April, which prompted a short-term spike in sales activity.
Despite the monthly decline, agreed sales in June were 6% higher than a year earlier, marking the busiest month for transactions since March 2022.
"It appears that we're now seeing the decade-high level of homes for sale, and the recent stamp duty increases in England, have a delayed impact on new sellers' pricing," said Rightmove's Colleen Babcock.
"Agents have been telling us that sellers need to set a competitive price to have a better chance of finding a buyer in the current market, and it looks like many are listening and responding to that message.
"Such realistic pricing will remain key in the coming months."
Across the Atlantic, the New York Empire State manufacturing index fell to -16 in June, down from -9.2 in May, marking a steeper decline than expected.
The index, compiled by the Federal Reserve Bank of New York, pointed to continued weakness in business conditions, with new orders and shipments slipping.
While employment edged higher and delivery times held steady, supply availability worsened and price pressures persisted.
Despite the downturn, manufacturers expressed cautious optimism, with the forward-looking index turning positive for the first time since March.
"Business activity continued to contract in New York State in June," said Richard Deitz, economic research advisor at the New York Fed.
"However, employment grew slightly for the first time in several months.
"Firms also turned positive about the outlook for future business conditions, expecting activity to increase in the months ahead."
Meanwhile, China's retail sector posted its strongest performance in over a year.
Retail sales rose 6.4% year-on-year in May, beating forecasts and marking the fastest pace since December 2023.
The rebound was fuelled by holiday-driven spending during the Labor Day and Dragon Boat Festival periods, alongside targeted government stimulus.
Urban and rural sales grew 6.5% and 5.4%, respectively, as policymakers sought to support consumption amid rising trade tensions with the US.
Year-to-date retail sales climbed 5% to CNY 20.32trn.
Entain leads gambling stocks higher, oil and gold plays in the red
On London's equity markets, Entain soared 15.25% after the betting group raised its guidance for BetMGM, citing a strong first-half performance in its US. operations.
The rally also lifted Playtech, which rose 4.24% on positive sentiment across the gaming sector.
Shares in Spectris jumped 6.4% after the UK-based scientific instruments firm confirmed it had rejected a takeover offer from KKR.
The move came amid ongoing talks with Advent International over a possible £4.4bn acquisition, sparking hopes of a bidding war.
Metro Bank rallied 16.58% following reports of a potential takeover by private equity firm Pollen Street Capital, boosting investor optimism over the lender's future.
Cruise operator Carnival climbed 4.12% after securing a new $4.5bn revolving credit facility, extending liquidity through 2030.
The company said the refinancing was secured on improved terms and marked progress toward strengthening its balance sheet.
Standard Chartered and Prudential rose 2.96% and 1.67%, respectively, as sentiment improved on the back of robust Chinese retail sales data, supporting demand for Asia-exposed stocks.
On the downside, oil majors BP and Shell slipped a respective 1.48% and 0.49%, as Brent crude prices fell 3.66% to $71.51 per barrel, retreating from recent highs tied to Middle East tensions.
Gold miners Hochschild Mining and Endeavour Mining dropped 5.42% and 3.25% as bullion prices pulled back following a sharp rally last week.
Reporting by Josh White for Sharecast.com.
Market Movers
FTSE 100 (UKX) 8,875.22 0.28%
FTSE 250 (MCX) 21,284.02 0.52%
techMARK (TASX) 5,098.80 0.27%
FTSE 100 - Risers
Entain (ENT) 866.00p 15.25%
International Consolidated Airlines Group SA (CDI) (IAG) 327.30p 3.35%
Informa (INF) 799.80p 3.04%
Standard Chartered (STAN) 1,180.00p 3.01%
Ashtead Group (AHT) 4,382.00p 2.70%
Vodafone Group (VOD) 75.64p 2.63%
IMI (IMI) 2,098.00p 2.44%
Intermediate Capital Group (ICG) 1,962.00p 2.13%
Barclays (BARC) 325.60p 1.97%
M&G (MNG) 259.80p 1.96%
FTSE 100 - Fallers
Diageo (DGE) 1,906.00p -2.26%
Fresnillo (FRES) 1,417.00p -1.94%
GSK (GSK) 1,485.50p -1.72%
AstraZeneca (AZN) 10,818.00p -1.53%
Hikma Pharmaceuticals (HIK) 2,098.00p -1.41%
Next (NXT) 12,590.00p -1.41%
Haleon (HLN) 391.00p -1.29%
Games Workshop Group (GAW) 16,350.00p -1.09%
Smith & Nephew (SN.) 1,082.50p -1.05%
Tesco (TSCO) 394.10p -1.03%
FTSE 250 - Risers
Spectris (SXS) 3,352.00p 6.14%
W.A.G Payment Solutions (WPS) 82.40p 5.64%
Playtech (PTEC) 343.00p 5.54%
Close Brothers Group (CBG) 379.00p 5.39%
Carnival (CCL) 1,565.50p 4.12%
SDCL Efficiency Income Trust (SEIT) 50.70p 3.26%
NextEnergy Solar Fund Limited Red (NESF) 72.35p 3.06%
Rotork (ROR) 336.20p 2.94%
Kier Group (KIE) 180.00p 2.74%
Bridgepoint Group (Reg S) (BPT) 289.80p 2.55%
FTSE 250 - Fallers
Hochschild Mining (HOC) 244.20p -5.42%
Raspberry PI Holdings (RPI) 454.80p -5.29%
Endeavour Mining (EDV) 2,322.00p -3.25%
Mobico Group (MCG) 25.98p -2.77%
Bellway (BWY) 2,876.00p -2.38%
Frasers Group (FRAS) 691.50p -1.98%
Oxford Nanopore Technologies (ONT) 118.50p -1.90%
B&M European Value Retail S.A. (DI) (BME) 255.90p -1.84%
Harbour Energy (HBR) 204.20p -1.83%
Crest Nicholson Holdings (CRST) 185.20p -1.80%
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