UK equities edged higher on Monday as investors weighed geopolitical developments across Ukraine and Iran alongside a fresh OPEC+ production decision.
As of 07:15 GMT, the FTSE 100 was up 0.26%, while France’s CAC 40 gained 0.30% and Germany’s DAX slipped 0.02%.
Sterling eased 0.11% against the U.S. dollar to $1.3338 as market participants monitored a busy domestic and international news agenda.
Russian President Vladimir Putin and U.S. President Donald Trump held a telephone conversation lasting almost 90 minutes on Sunday, according to Russia’s foreign ministry, marking their fourth discussion this year.
The ministry described the talks as “businesslike and highly constructive” and said Trump “reaffirmed his readiness to facilitate the earliest possible cessation of hostilities” in Ukraine.
Ukrainian President Volodymyr Zelensky said he had a “very good call” with Trump on Saturday, stating: “There is a real prospect to put an end to this war, and America’s resolve is decisive.”
The diplomatic activity came ahead of a NATO summit opening in Turkey on Tuesday, which Trump is expected to attend in person.
Iran meanwhile began a 12-hour funeral procession in Tehran for the late Supreme Leader Ayatollah Ali Khamenei, marking the third day of national mourning across the country.
His successor, Mojtaba Khamenei, has not appeared publicly since the 28 February airstrike that killed his father, with Iranian officials saying he was injured and has communicated only through written statements.
Seven OPEC+ members, including Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria and Oman, agreed to increase combined oil production by 188,000 barrels per day from August, marking the fifth consecutive monthly output increase.
Brent crude futures for September delivery fell 0.42% to $71.82 a barrel, while U.S. WTI crude for August delivery slipped 0.32% to $68.47.
Gold futures for August rose 0.91% to $4,162.51 an ounce, though spot gold declined 0.60% to $4,150.56 as risk appetite remained cautious.
In UK politics, Makerfield MP Andy Burnham ruled out calling an early general election if he were to become prime minister, saying: “No. As I said in my speech on Monday, I’m going to work to the 2024 manifesto.”
Conservative leader Kemi Badenoch criticised Burnham’s decision to take questions on Reddit, urging him to “face a proper press conference” instead.
On the corporate front, easyJet (LSE: EZJ) agreed in principle to support a proposed £5.5 billion takeover by U.S. investment firm Castlelake at £6.90 per share, a deal that could significantly reshape the European airline sector.
Ocado (LSE: OCDO) confirmed that founder Tim Steiner will remain chief executive until the start of 2028 before transitioning into a Founder role through 2029 as part of a planned leadership succession.
ITV (LSE: ITV) agreed to sell its Media and Entertainment division to Sky in a deal worth up to £1.6 billion, allowing ITV Studios to operate as a standalone content production business while adding Love Productions to its portfolio.
The Society of Motor Manufacturers and Traders reported that UK new car registrations rose by around 11% year on year in June, with battery electric vehicles accounting for 30% of all new registrations.