London close: Stocks maintain gains as oil prices fall

27th Jul 2026 16:34

(Sharecast News) - London stocks continued to push higher on Monday, as oil prices tumbled on renewed hopes for a lasting peace deal in the Middle East and investors digested a slew of corporate updates.

The FTSE 100 was up 0.42% at 10,781.75, while the FTSE 250 rose 0.41% to 23,898.10.

Sterling was weaker, with the pound down 0.15% against the dollar at $1.3305 and 0.19% lower versus the euro at €1.1695.

"When a calming of Middle Eastern hostilities fails to provoke a major up day in stocks, you know there is more trouble ahead," said Chris Beauchamp, chief market analyst at IG.

"Earlier optimism around a pause in fighting did not last once the US session began, and investors took the earlier gains as a chance to cut back exposure yet further in battered tech stocks.

"The Nasdaq 100 fell to its lowest level since early May, hit hard by a 3% drop in Nvidia.

"While a lack of hostilities is good news all round, the fears hitting markets are broader than that, and in any case, there is too much event this week to go charging back into stocks."

Oil prices fell sharply, with Brent crude down 7.27% at $89.74 a barrel and West Texas Intermediate 6.76% lower at $83.27, after Iran and the US paused tit-for-tat attacks following a fortnight of escalating violence.

The US military has not reported any strikes since Thursday, while Iranian forces halted attacks over the weekend, fuelling hopes that diplomacy could resume.

Danni Hewson, head of financial analysis at AJ Bell, said investors had got used to the massive fluctuations in oil prices, but what was hoped would be "a sustained de-escalation in tensions" between the US and Iran, helping to buoy global sentiment.

"On both sides of the Atlantic, the relief that Brent crude was edging back towards $90 a barrel today was palpable, and investors were viewing risk with a new eye."

Mike Waltz, the US ambassador to the United Nations, said Donald Trump was pausing attacks to allow more time for diplomacy.

Iran said on Monday it was not holding discussions with the US, but acknowledged talks with Oman over the transit of shipping through the Strait of Hormuz after a delegation spent Friday and Saturday in Tehran.

"The resilience of European stock markets is being driven by this reversal in oil prices, and it may last a while if we keep seeing crude prices come down," Beauchamp said.

"But they are unlikely to remain immune if August does live up to its reputation for volatility.

"Mid-term Augusts aren't always dire, but much hinges on whether this week's cavalcade of big tech earnings - and everything else, but tech trumps all - goes the same way as Alphabet's last week."

UK retail downturn eases in half-year to July

In economic news, the downturn in the UK retail sector eased in the six months to July, according to the latest CBI survey.

The headline distributive trades balance rose to -26 from -54 in June, although sales are expected to fall at a similar pace next month.

Retail sales for the time of year were still judged to be "poor", but to a lesser extent than in June, with the balance improving to -18 from -40.

"Retailers reported that the ongoing sales downturn lost steam in July, but a recovery still looks some way off as gloomy sentiment and elevated cost pressures weigh on activity," said CBI lead economist Martin Sartorius.

Sartorius said distribution firms would welcome the prime minister's focus on supporting local high streets, but would also be looking for broader business rates reform.

He added that the government must take further action on rising labour costs while protecting labour market flexibility.

Vodafone sparks, Vesuvius in the red

In equity markets, Vodafone sparked 4.84% after the telecoms operator said it expected full-year earnings to be at the upper end of guidance following a strong first quarter, including a contribution from Safaricom, in which it now holds a 55% stake.

Adjusted earnings before interest, taxes, depreciation, amortisation and leases rose 6.7% to €2.9bn, and Vodafone said it expected the annual figure to be at the top end of its €13bn to €13.3bn guidance range.

JD Sports Fashion rose 4.71% after BNP Paribas lifted its rating on the retailer to 'outperform', with a 105p price target.

Relx gained 4.27%, extending gains from last week after the information and analytics group reaffirmed its full-year outlook and posted higher first-half revenue and profit.

Deutsche Bank raised its price target on the shares to 3,100p from 3,050p on Friday, citing "strong" first-half figures and a "positive" results call, and said AI concerns looked overdone.

AstraZeneca advanced 1.72% after the pharmaceutical group reiterated its full-year outlook, with second-quarter revenues up 5% at $15.4bn and core earnings per share ahead of forecasts at $2.63, helped by a robust oncology performance.

Tritax Big Box REIT was 1.05% higher after securing planning consent for a 107MW data centre development near Heathrow, following the conclusion of a six-week judicial review.

The company said the project, on the 74-acre Slough Availability Zone, was the "first major demonstration" of its data centre strategy and was expected to achieve a 9.3% yield on cost once operational.

DCC Energy rose 0.88% after Energy Capital Partners and KKR agreed to acquire it in a £5.75bn deal worth up to 6,797.22p per share.

The offer includes a base payment of 6,525p, a 147.22p final dividend and a potential 125p linked to a planned technology disposal, representing a 24% premium to DCC's undisturbed closing price.

On the downside, Vesuvius tanked 11.05% after the molten metal flow engineer downgraded its full-year outlook.

The FTSE 250 company said first-half trading profit was expected to be around £74m, with the steel division continuing to be affected by operational issues since its May update.

BP fell 2.57% and Shell lost 0.86% as oil prices tumbled on hopes of a lasting peace deal in the Middle East.

BA and Iberia owner IAG gained 1.57%, however, as falling oil prices eased concerns over jet fuel costs.

Reporting by Josh White for Sharecast.com.

Market Movers

FTSE 100 (UKX) 10,781.75 0.42%

FTSE 250 (MCX) 23,898.10 0.41%

techMARK (TASX) 6,102.24 1.46%

FTSE 100 - Risers

Flutter Entertainment (DI) (FLTR) 8,088.00p 6.45%

Vodafone Group (VOD) 120.15p 4.84%

Relx plc (REL) 2,682.00p 4.44%

Autotrader Group (AUTO) 510.80p 4.44%

Airtel Africa (AAF) 348.40p 4.25%

JD Sports Fashion (JD.) 92.70p 4.20%

ICG (ICG) 1,938.00p 3.86%

The Sage Group (SGE) 890.80p 3.80%

Entain (ENT) 574.40p 3.79%

BT Group (BT.A) 198.85p 3.03%

FTSE 100 - Fallers

Glencore (GLEN) 519.10p -3.39%

BP (BP.) 534.30p -2.57%

IMI (IMI) 2,980.00p -2.30%

Antofagasta (ANTO) 3,551.00p -2.20%

Anglo American (AAL) 3,641.00p -2.15%

Centrica (CNA) 159.80p -1.96%

SSE (SSE) 2,377.00p -1.86%

Weir Group (WEIR) 2,574.00p -1.61%

Spirax Group (SPX) 6,985.00p -1.34%

National Grid (NG.) 1,222.50p -1.21%

FTSE 250 - Risers

GB Group (GBG) 221.00p 6.76%

Trustpilot Group (TRST) 272.00p 6.17%

Globaldata (DATA) 77.80p 5.85%

Rank Group (RNK) 99.10p 5.20%

Trainline (TRN) 231.60p 5.08%

Playtech (PTEC) 390.20p 4.95%

Bridgepoint Group (Reg S) (BPT) 332.80p 4.79%

Rightmove (RMV) 457.10p 4.53%

WPP (WPP) 294.50p 4.25%

Baltic Classifieds Group (BCG) 192.70p 4.16%

FTSE 250 - Fallers

Vesuvius (VSVS) 394.00p -12.83%

Ithaca Energy (ITH) 237.60p -7.76%

Energean (ENOG) 769.50p -7.07%

Harbour Energy (HBR) 241.60p -5.70%

Raspberry PI Holdings (RPI) 675.00p -4.66%

Ceres Power Holdings (CWR) 367.80p -4.22%

Bytes Technology Group (BYIT) 404.00p -2.93%

RIT Capital Partners (RCP) 2,440.00p -2.79%

Allianz Technology Trust (ATT) 666.00p -2.49%

Polar Capital Technology Trust (PCT) 629.50p -2.48%