London midday: stocks spark as oil prices continue to tumble

27th Jul 2026 11:28

(Sharecast News) - London stocks continued to push higher at midday 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 0.6% at 10,800.22 and the FTSE 250 was ahead 0.77% at 23,985.17, while both Brent and West Texas Intermediate were sharply lower. Benchmark Brent was down 8% at $88.98 while WTI fell 7% to $83.18. European stocks were also trading in the black.

Oil prices were responding to Iran and America pausing tit-for-tat attacks following a fortnight of steadily escalating violence. The US military has not reported any strikes since Thursday, while Iranian forces halted all attacks over the weekend. The de-escalation fuelled hopes that a long-term peace deal may yet be back on the table. Mike Waltz, the US ambassador to the United Nations, told media that the Donald Trump was pausing attacks to allow for more time for diplomacy.

Iran insisted on Monday it was not holding discussions with the US. But it did acknowledge talks with Oman about the transit of shipping through the Strait of Hormuz. A delegation from the Middle East country spent Friday and Saturday in Tehran.

Russ Mould, investment director at AJ Bell, said: "A thumping drop in the price of oil is helping to get global stock markets off to a good start to the week.

"Sentiment has received a further boost from a sizzling stock market debut in China by silicon chip maker CXMT. It's near five-fold surge may help to soothe concerns about the AI trade after slumps in SpaceX and Korea's SK Hynix after their recent offerings."

CXMT's shares soared a record 466% on their first day of trading in Shanghai on Monday, with the DRam specialist raising a $85bn, as investors shrugged off worries about valuations and a possible AI boom.

Closer to home, and Richard Hunter, head of markets at Interactive Investor, said: "Despite some inevitable weakness in the index heavyweights BP and Shell - which conversely caused IAG to bounce - there was broad appreciation for the larger names within the index with their stability and cash generation coming back into focus." BP fell nearly 4% at 529p, while Shell shed 2% at 3,244.57p. But British Airways-owner International Consolidated Airlines sparked 3% at 445.7p. Fuel is one of the biggest costs faced by airlines.

Vodafone sparked 4% at 119.45p, after the telecoms operator said it expected full-year earnings to be at the upper end of guidance after a strong first quarter performance 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. The company on Monday said it expected the annual figure to be at the top end of the €13bn - €13.3bn revised guidance provided in May.

Vying with Vodafone for the top spot on the FTSE 100 risers board was JD Sports Fashion Group. It put on 4% at 92.8p, supported by BNP Paribas raising its rating on the retailer to 'outperform', with a price target of 105p.

AstraZeneca was also trading higher, up 2% at 12,914p. The blue chip pharma reiterated its full-year outlook after second-quarter revenues sparked 5% at $15.4bn and core earnings per share came in ahead of forecasts, at $2.63, helped by a robust performance from its oncology division.

Tritax Big Box Reit was also higher, up 1% at 172.7p, after confirming it had secured planning consent for a 107Mw data centre development near Heathrow, following the conclusion of a six-week judicial review. Tritax called the project, which will be constructed on the 74-acre Slough Availability Zone, the "first major demonstration" of its data centre strategy. Once operational, the facility is expected to achieve a 9.3% yield on cost.

Energy sales and distribution firm DCC Energy announced that Energy Capital Partners and KKR had agreed to acquire it in a £5.75bn deal worth up to 6,797.22p per share. DCC said the cash offer included a base payment of 6,525p, a 147.22p final dividend, and a potential 125p linked to a planned technology disposal, marking a 24% premium to its undisturbed closing price. The stock was up 1% at 6,360p.

Away from the top flight, however, and shares in Vesuvius tanked. The stock tumbled 10% at 405.2p after the molten metal flow engineer downgraded its full-year outlook. In a brief trading statement, the FTSE 250 firm said trading profit for the first half was expected to be around £74m. Vesuvius aid that since its last update in May, it had continued to been affected by operational issues in the steel division.