European markets opened in mixed territory on Tuesday as easing tensions in the Middle East helped steady investor sentiment across major indices.
The FTSE 100 fell 0.27 per cent to 10,325.57, with France’s CAC 40 also declining 0.23 per cent and Germany’s DAX slipping 0.58 per cent at the open.
US markets provided a more positive overnight backdrop, with the Nasdaq rising 0.65 per cent and the S&P 500 adding 0.31 per cent by the close of the previous session.
Investors are closely watching developments around Iran-Israel ceasefire negotiations, which have had a notable influence on energy markets and broader risk appetite in recent sessions.
Commodity markets reflected the improving geopolitical mood, with Brent crude falling 1.30 per cent as some of the recent tension-driven premium unwound from oil prices.
Copper and natural gas both advanced, while gold was little changed as demand for safe-haven assets eased alongside the improving diplomatic backdrop.
Sterling gained ground against the US dollar, euro, Japanese yen, Swiss franc and Australian dollar, while Bitcoin weakened against the pound, falling 0.37 per cent to £47,144.
Housebuilder Bellway (LSE:BWY) said higher mortgage costs weighed on demand during the spring selling season, with the private reservation rate slipping 6.2 per cent to 151 per week.
Despite that softening, Bellway maintained its full-year guidance for underlying operating profit of between £320 million and £330 million and volume output of 9,300 to 9,500 homes.
The update signals that while affordability pressures are creating headwinds, the company retains confidence in the stability of its broader business metrics heading into the second half of the year.
In a separate and significant deal, GSK (LSE:GSK) agreed to acquire US lung cancer specialist Nuvalent in a transaction worth approximately £8 billion, underlining its ambition to build out targeted cancer treatments.
The acquisition strengthens GSK’s oncology pipeline at a time when pharmaceutical companies are aggressively competing to secure next-generation cancer therapies with high commercial potential.
Gold held largely flat at 4,330.29, while natural gas edged up 0.63 per cent and copper gained 0.78 per cent, pointing to resilient industrial demand expectations despite the uncertain macro environment.
Currency markets saw sterling strengthen across the board, with the pound buying $1.3365 against the US dollar and €1.1578 against the euro at the time of the market open.
Markets are expected to remain sensitive to further geopolitical developments, central bank signals and any shift in the outlook for global economic growth throughout the remainder of the trading week.