\n\tFTSE 100 up 36 points at\u00a010,772
\n\tOil prices drop as US and Iran pause strikes
\n\tAstraZeneca and Vodafone report as results season ups a gear\u00a0
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9.42am: ‘A major shift in financial markets’<\/p>\n
Initial gains for the FTSE have been chipped away, with the London index up around 0.3% now, with the pace in Europe being set by\u00a0Germany\u2019s DAX and Spain\u2019s IBEX, both up over 1%.<\/p>\n
The Stoxx 600 is up 0.5%, with software and technology names leading the rally, including SAP, Nemetschek and Wolters Kluwer.<\/p>\n
Oil producers are putting on the brakes, with Equinor down 5.2%, V\u00e5r Energi off 4.9%, Eni losing 4.2% and BP falling 3.5%.<\/p>\n
“There has been a major shift in financial markets this morning,” says analyst Kathleen Brooks at XTB, citing reports that the US and Iran have agreed to a pause in hostilities after two weeks of strikes.<\/p>\n
“This has dramatically reduced the geopolitical risk premium,” she says, with the Brent crude oil<\/a> price down 10% from where it was on Friday morning.<\/p>\n “The question now is, will the de-escalation in tensions between Iran and the US have a longer-term dampening impact on the oil price, and will it lead to reduced inflationary concerns as we lead up to some key central bank meetings?”<\/p>\n For now, the Strait of Hormuz is still under a blockade, with Houthi attacks in the Red Sea keeping investors worried about commodity supply risks.<\/p>\n “Although the situation in the Middle East has calmed, it has not been resolved, and it could make a decline below $85b per barrel tricky at this stage,” Brooks says.<\/p>\n However, as she points out, we have been here before and the abandonment of the ceasefire and resumption of military strikes in the last two weeks “have reminded us that geopolitical risks are never far away, and relations between the US and Iran remain incendiary”.<\/p>\n \t\t\t\t\t9.08am: Vodafone encouraging<\/p>\n Vodafone is top of the blue-chip risers, following what analyst Matt Britzman at Hargreaves Lansdown calls “an encouraging start to the year, with every part of the business growing and profits rising faster than revenue”.<\/p>\n “Stable growth from Germany was key and better than expected, as demand for broadband picked up and income from other network providers helped balance a competitive mobile market.<\/p>\n “The UK also moved forward, with the integration of Three on track, and early network upgrades already improving speeds for customers.<\/p>\n “There\u2019s still work to do, but the direction of travel is positive, and we should see some consensus upgrades off the back of these numbers.”<\/p>\n 8.36am: AZ inching away from recent lows<\/p>\n AstraZeneca\u00a0shares climbed almost 2% to 12,922p, their highest since the failed Wainua trial (though by no means all the way, as the shares were at 14,240p before that news), after the drugmaker’s first-half results.<\/p>\n Analyst Michael Leuchten at Jefferies says higher income from partnerships and a slightly better profit margin were offset by higher selling and administrative costs, although a lower tax bill helped earnings beat expectations by 5%.<\/p>\n With the 2026 outlook kept unchanged, he says this means the City revenue consensus forecasts sit near the bottom of its guidance range while earnings forecasts are\u00a0“towards the midpoint” if assuming constant currency rates.<\/p>\n He also highlighted AstraZeneca\u2019s assessment of\u00a0tozorakimab as a potential $5 billion-plus respiratory opportunity ahead of an upcoming presentation.<\/p>\n Adam Vettese, market analyst at eToro, says the\u00a0results “look reassuringly solid”.<\/p>\n He flags double-digit oncology gains from Imfinzi, Calquence and Tagrisso,\u00a0more than offseting the expected Farxiga patent hit and China pressures.\u00a0<\/p>\n “That said, the recent Wainua heart drug failure still hangs over the stock. Growth is clearly moderating, and investors will stay laser focused on the remaining big oncology trial readouts later this year.”<\/p>\n 8.15am: FTSE 100 springs higher at open, led by Vodafone<\/p>\n The FTSE 100 has begun the week with a spring in its step, advancing 51 points to\u00a010,787 despite sizeable declines for oil and gas names.\u00a0<\/p>\n Driving the index higher are gains for AstraZeneca, up 1.1%, travel-related names like IAG and Rolls-Royce, up 3.2% and 2.6%, as well as banks, miners and retailers.\u00a0<\/p>\n Vodafone is at the front of the pack, up 3.6% following its upbeat update.<\/p>\n At the other end of the table, BP and Shell are down 3.7% and 1.9%, with British Gas owner Centrica falling 1.5% and commodities giant Glencore falling 1.4%.<\/p>\n 7.55am:\u00a0AstraZeneca delivers Q2 beat, ‘on track’ for full year<\/p>\n