London close: Stocks manage gains as oil prices slide
By Josh White
Date: Tuesday 24 Jun 2025
(Sharecast News) - London equities ended slightly higher on Tuesday, overcoming geopolitical jitters after Israel accused Iran of violating a ceasefire agreement.
The FTSE 100 index closed nearly flat, rising 0.01% to 8,758.99 points, while the FTSE 250 climbed 0.97% to 21,326.20 points.
In currency markets, sterling was last up 0.68% on the dollar to trade at $1.3616, while it rose 0.39% against the euro, changing hands at €1.1726.
Axel Rudolph, senior technical analyst at IG, noted that oil prices experienced a sharp decline on Tuesday following the announcement of a ceasefire between Israel and Iran, alleviating concerns over potential disruptions in the Middle East's oil supply.
"The truce, brokered by US president Donald Trump, was declared on Monday evening via social media.
"Although initial reports suggested mutual compliance, subsequent accusations of violations by both sides have cast doubt on the ceasefire's durability.
"Nonetheless oil traders are clearly pricing in a normalisation of relations between the two Middle Eastern countries with the Brent crude oil price falling by around 13% and WTI by close to 15% from their Monday highs."
Middle East tensions return; UK inflation, manufacturing and grocery trends raise concerns
Geopolitical tensions flared during the day after Israel ordered strikes on Tehran, accusing Iran of violating a ceasefire agreement declared only hours earlier by US president Donald Trump.
The Israeli military claimed it had intercepted missile launches from Iran, prompting defence minister Israel Katz to authorise continued strikes on regime targets in Tehran.
Iran denied launching missiles, with its general staff describing Israel's allegations as baseless.
On home shores, UK economic data painted a mixed picture.
Manufacturing output weakened over the three months to June, with the CBI's latest Industrial Trends survey showing a fall in new orders, as the balance dropped to -33 from -30 in May.
The data suggested continued pressure on the UK's industrial sector amid subdued demand.
Ben Jones, CBI lead economist, said the sector was under significant pressure, contending with high energy costs, rising labour costs, pervasive skills shortages, and a volatile global economic environment.
"With departmental budgets now set following the Spending Review, businesses are looking to the government to dismantle barriers to growth ahead of the Autumn Budget," he said.
"Welcome progress has been made with the recent infrastructure and industrial strategies setting a clear long-term economic vision for the UK.
"This is complemented by a US-UK trade deal expected to mitigate tariff uncertainty, especially for automotive and aerospace, and British Steel's agreement to provide 337,000 tonnes of rail track for Network Rail."
Consumer trends also signalled strain, as Kantar reported that grocery volumes fell 0.4% year-on-year in the four weeks to 15 June, despite a record 490 million supermarket visits.
Grocery price inflation rose to 4.7%, its highest level in 14 months, driving up total sales but prompting tighter household spending.
The average basket size fell slightly, and Kantar noted rising adoption of GLP-1 weight loss drugs may be influencing food choices, with 4% of households now including at least one user.
"As the sun tempted more people out, fresh fruit sales were one of the biggest winners," said Fraser McKevitt, head of retail and consumer insight at Kantar.
"Consumers bought 2,400 packs of strawberries every minute in the last four weeks.
"People are trading up to more exotic fruits too, with sales of mangoes and blueberries climbing by 27% and 10% each."
Meanwhile, Bank of England policymaker Megan Greene warned that inflation may not ease as quickly as hoped.
Speaking at the National Institute of Economic and Social Research, Greene said she sees inflation stabilising at a high level rather than falling sharply.
"I worry about the near-term profile for inflation this year, which in my view now resembles more of a 'plateau' than a 'hump'," she said.
Greene cautioned that volatile data and lingering price pressures mean the Bank should proceed slowly with any rate cuts.
Travel stocks soar as oil falls; miners and energy lag
On London's equity markets, British Airways owner IAG jumped 6.03%, while easyJet surged 6.4% and Wizz Air rose 1.89%, as the prospect of lower fuel costs lifted airline sentiment.
Cruise operator Carnival rocketed 12.85% after posting record-breaking second-quarter results.
The company reported net income of $565m, up nearly $475m year-on-year, and exceeded its 2026 financial targets 18 months ahead of schedule, buoyed by strong demand and onboard spending.
InterContinental Hotels Group added 2.49%, extending the travel rebound.
Recruitment firm SThree climbed 8.28% despite a fall in first-half net fees, as it maintained full-year guidance and highlighted signs of improving momentum.
Sector peer Hays also edged higher.
Bunzl rose 0.34% after confirming performance was in line with expectations for the first half and noting steps were being taken to enhance growth.
"After rocking the boat in April, Bunzl has thrown investors a lifeline with a calm, no-surprises trading update," said Matt Britzman, senior equity analyst at Hargreaves Lansdown.
"Just a few months ago, the story was very different, as a series of issues triggered a major sell-off.
"Typically known for its stability, Bunzl's uneventful update today, while not particularly exciting on the upside, should be received relatively well."
On the downside, BP dropped 5.05% and Shell fell 3.45% as oil prices retreated, reversing recent gains.
Defence contractor BAE Systems slipped 3.22%, while gold miners Endeavour Mining and Hochschild Mining declined 5.6% and 4.31% respectively, tracking weaker bullion prices.
Telecom Plus shed 4.84% despite posting record annual profits, as a dip in revenue and cautious investor sentiment weighed on the stock.
Reporting by Josh White for Sharecast.com.
Market Movers
FTSE 100 (UKX) 8,758.99 0.01%
FTSE 250 (MCX) 21,326.20 0.97%
techMARK (TASX) 5,032.86 0.17%
FTSE 100 - Risers
JD Sports Fashion (JD.) 76.56p 6.77%
easyJet (EZJ) 539.00p 6.40%
International Consolidated Airlines Group SA (CDI) (IAG) 327.50p 6.09%
Barclays (BARC) 333.50p 4.66%
Intermediate Capital Group (ICG) 1,987.00p 3.98%
Smurfit Westrock (DI) (SWR) 3,189.00p 3.51%
NATWEST GROUP (NWG) 509.80p 3.14%
HSBC Holdings (HSBA) 886.40p 3.03%
Croda International (CRDA) 3,060.00p 2.96%
CRH (CDI) (CRH) 6,682.00p 2.96%
FTSE 100 - Fallers
BP (BP.) 367.95p -4.77%
BAE Systems (BA.) 1,801.00p -4.20%
Shell (SHEL) 2,584.50p -3.71%
Glencore (GLEN) 275.10p -3.63%
Fresnillo (FRES) 1,410.00p -2.29%
Games Workshop Group (GAW) 15,900.00p -2.03%
Babcock International Group (BAB) 1,033.00p -1.81%
Imperial Brands (IMB) 2,889.00p -1.53%
Admiral Group (ADM) 3,316.00p -1.43%
Compass Group (CPG) 2,477.00p -1.39%
FTSE 250 - Risers
Carnival (CCL) 1,722.50p 11.81%
Bridgepoint Group (Reg S) (BPT) 301.80p 7.40%
SDCL Efficiency Income Trust (SEIT) 56.00p 6.67%
W.A.G Payment Solutions (WPS) 89.00p 6.46%
Alpha Group International (ALPH) 3,080.00p 5.84%
Hays (HAS) 66.55p 5.72%
Morgan Advanced Materials (MGAM) 214.00p 4.65%
Apax Global Alpha Limited (APAX) 124.00p 4.55%
Ocado Group (OCDO) 239.80p 4.22%
Future (FUTR) 735.00p 3.96%
FTSE 250 - Fallers
Ithaca Energy (ITH) 161.10p -6.62%
Endeavour Mining (EDV) 2,212.00p -6.11%
Harbour Energy (HBR) 197.70p -4.95%
Telecom Plus (TEP) 1,976.00p -4.77%
QinetiQ Group (QQ.) 472.40p -3.63%
Hochschild Mining (HOC) 243.80p -2.79%
Chemring Group (CHG) 540.00p -2.70%
Serco Group (SRP) 193.40p -2.33%
Clarkson (CKN) 3,230.00p -2.12%
Moonpig Group (MOON) 254.00p -2.12%
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