LONDON (ShareCast) - (Sharecast News) - London stocks edged lower on Monday after a volatile session, as investors weighed the latest developments in the ongoing trade tensions involving US president Donald Trump.
The FTSE 100 index slipped 0.19% to close at 8,806.53 points, while the FTSE 250 dipped 0.09% to 21,538.48 points.

In currency markets, sterling was last down 0.1% on the dollar to trade at $1.3636, as it gained 0.28% against the euro, changing hands at €1.1620.

"Countries and regions are bracing themselves for trade letters from the US as the Trump administration moves to the next phase of its tariff regime," said Dan Coatsworth, investment analyst at AJ Bell.

"Trump might be treating it in the same way as a final notice letter - get your act together and agree to a deal or be put back on the higher tariff rates outlined in the Liberation Day announcement."

Coatsworth said there was now "some clarity" on how the system would work.

"Rather than a hard deadline of 9 July where all countries without a trade deal will revert to the higher rates announced on 2 April, the new tariff regime begins on 1 August.

"More countries are expected to confirm trade deals in the coming days, and extensions are possible beyond the 9 July hurdle for countries where negotiations are deemed to be going well."

UK house prices broadly flat, eurozone retail sales fall

In economic news, house prices in the UK were broadly flat in June, according to Halifax, as increased market activity offset May's 0.3% decline.

On an annual basis, prices rose 2.5%, slightly down from 2.6% in May.

The average property price stood at £296,665, little changed from the previous month.

"The market's resilience continues to stand out and, after a brief slowdown following the spring stamp duty changes, mortgage approvals and property transactions have both picked up, with more buyers returning to the market," said Amanda Bryden, head of mortgages at Halifax.

"That's being helped by a few key factors - wages are still rising, which is easing some of the pressure on affordability, and interest rates have stabilised in recent months, giving people more confidence to plan ahead.

"Lenders have also responded to new regulatory guidance by taking a more flexible approach to affordability assessments."

In the eurozone, retail sales slipped 0.7% month-on-month in May, reversing April's revised 0.3% gain.

The fall was driven by weaker demand across food, fuel and non-food categories, though some countries like Poland and Sweden posted gains.

On an annual basis, sales rose 1.8%.

Investor confidence in the eurozone meanwhile climbed to its highest level since February 2022, with the Sentix index rising for a third consecutive month to 4.5 in July.

Both current conditions and forward-looking expectations improved, supporting hopes of an economic turning point.

German sentiment followed suit, with expectations reaching a one-year high and current assessments improving for a fifth straight month.

Staying in Germany, industrial output rebounded more than expected in May, rising 1.2% after a sharp 1.6% drop in April.

The increase was driven by strong growth in automotive, energy and pharmaceutical production, though construction output declined 3.9%.

Production of capital and consumer goods rose, while intermediate goods production fell.

Shell leads energy firms lower, airlines in the green

On London's equity markets, Shell shares fell 2.34% after the company warned that second-quarter oil and gas trading results would be significantly weaker than the prior quarter due to market volatility.

BP also declined, losing 1.98%.

Currys dropped 4.91% after RBC Capital Markets downgraded the stock to 'sector perform' from 'outperform', citing the retailer's recent strong gains and advising it was time to take profits.

On the upside, airlines flew higher.

British Airways and Aer Lingus owner International Consolidated Airlines rose 1.88%, while easyJet and Wizz Air gained 1.42% and 1.57% respectively, buoyed by continued investor optimism around the summer travel season.

Plus500 rose 0.79% after reporting a 12% year-on-year rise in second-quarter EBITDA to $91.3m.

Travel caterer SSP Group inched up 0.27% as it launched the public bidding process for the Mumbai initial public offering of its Indian joint venture, potentially valuing the business at up to £1.23bn.

Weir Group gained 0.96% after receiving an upgrade to 'buy' from Citi, helping to offset broader market weakness.

Reporting by Josh White for Sharecast.com.

Market Movers

FTSE 100 (UKX) 8,806.53 -0.19%
FTSE 250 (MCX) 21,538.48 -0.09%
techMARK (TASX) 5,098.42 -0.29%

FTSE 100 - Risers

3i Group (III) 4,176.00p 3.32%
Flutter Entertainment (DI) (FLTR) 20,790.00p 3.07%
Babcock International Group (BAB) 1,101.00p 2.61%
International Consolidated Airlines Group SA (CDI) (IAG) 354.80p 2.37%
easyJet (EZJ) 531.60p 1.68%
Schroders (SDR) 368.20p 1.43%
Airtel Africa (AAF) 180.70p 1.40%
Experian (EXPN) 3,865.00p 1.15%
Barclays (BARC) 334.30p 1.15%
Auto Trader Group (AUTO) 819.40p 1.11%

FTSE 100 - Fallers

Shell (SHEL) 2,553.00p -2.85%
JD Sports Fashion (JD.) 87.88p -2.40%
BP (BP.) 371.75p -1.98%
Haleon (HLN) 371.30p -1.75%
Mondi (MNDI) 1,179.00p -1.67%
Croda International (CRDA) 2,958.00p -1.66%
Glencore (GLEN) 297.90p -1.63%
Beazley (BEZ) 896.00p -1.54%
Associated British Foods (ABF) 2,049.00p -1.40%
Marks & Spencer Group (MKS) 339.20p -1.34%

FTSE 250 - Risers

Baltic Classifieds Group (BCG) 340.00p 3.82%
Future (FUTR) 725.50p 3.57%
Trustpilot Group (TRST) 237.80p 3.03%
Volution Group (FAN) 610.00p 2.87%
VinaCapital Vietnam Opportunity Fund Ltd. (VOF) 436.00p 2.35%
Bytes Technology Group (BYIT) 363.00p 2.20%
TP Icap Group (TCAP) 284.50p 2.15%
Indivior (INDV) 1,145.00p 2.05%
IG Group Holdings (IGG) 1,079.00p 1.89%
Energean (ENOG) 920.50p 1.88%

FTSE 250 - Fallers

Currys (CURY) 118.20p -4.91%
Moonpig Group (MOON) 211.00p -4.52%
Oxford Nanopore Technologies (ONT) 142.50p -3.65%
Ocado Group (OCDO) 234.20p -3.50%
Tate & Lyle (TATE) 530.50p -3.28%
Helios Towers (HTWS) 119.20p -3.09%
Genuit Group (GEN) 372.50p -2.99%
Close Brothers Group (CBG) 378.80p -2.87%
Marshalls (MSLH) 259.00p -2.26%
WH Smith (SMWH) 1,084.00p -1.81%

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