European markets opened on a cautious note as renewed geopolitical tensions in the Middle East weighed heavily on investor sentiment across the continent.
The FTSE 100 edged higher by 0.11 per cent to 10,345.29, while continental benchmarks struggled, with the CAC 40 declining 0.32 per cent and the DAX falling 0.75 per cent.
US markets proved more resilient, with the Nasdaq rising 1.16 per cent to 29,185.8 and the S&P 500 gaining 0.74 per cent to reach 7,412.0.
Brent crude surged 4.46 per cent to 96.131, reflecting trader anxiety over escalating conflict risks and concerns about energy supply routes through the region.
Gold slipped 0.45 per cent despite traditional safe-haven demand, while copper advanced modestly by 0.33 per cent and natural gas declined 0.91 per cent.
Sterling strengthened against the euro, yen and Australian dollar during early trading, while slipping marginally against the US dollar, which traded at $1.3344 against the pound.
Tate & Lyle (LSE: TATE) confirmed it has agreed a recommended £2.7 billion cash takeover by US-listed Ingredion, representing an enterprise value of approximately £3.7 billion, or $5.0 billion.
Shareholders will receive 595p in cash plus permitted dividends of up to 20p per share, taking the headline value to 615p and representing a 64 per cent premium to the undisturbed share price of 13 May.
The agreed offer also represents a 70.8 per cent premium to Tate & Lyle’s three-month volume-weighted average price, with the transaction expected to close in the second half of 2027 subject to regulatory approvals.
The deal marks another significant departure from the London market, with the food ingredients specialist joining a growing list of UK-listed companies acquired by overseas buyers in recent years.
Audioboom (LSE: BOOM) separately announced it has ended its strategic review and abandoned plans for a sale after concluding that takeover proposals received did not adequately reflect the company’s underlying value.
The podcast advertising platform said the decision followed record first-half trading performance, with management expressing confidence in the group’s standalone growth prospects going forward.
The contrasting fortunes of the two companies underscored a broader theme in UK markets, where some boards are accepting overseas bids while others are choosing to remain independent on the strength of improving fundamentals.
Concerns around artificial intelligence valuations also contributed to caution across European equities, adding a further layer of complexity to an already uncertain investment backdrop for portfolio managers.