London markets gain as oil prices and gilt yields retreat

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London markets gain on oil, gilts

Highlights

The FTSE 100 climbs 0.7% to 10,516.25 and the FTSE 250 rises 1.2% as oil prices and gilt yields retreat, boosting risk appetite.
Airtel Money debuts flat at £1.96 in one of London's largest recent listings following strong investor demand for its oversubscribed IPO.
Vodafone, Airtel Africa, and BT Group drop 2.5% to 5.4% after SpaceX's spectrum acquisition, while Morgan Advanced Materials surges 8.7% on an RBC Capital Markets upgrade.

Index rebound and listing activity

As reported by Reuters, the FTSE 100 rises 0.7% to 10,516.25 points by 1045 GMT, while the FTSE 250 advances 1.2% as investors return to risk assets. The move follows a retreat in British government bond yields after 10-year and 30-year gilts hit fresh multi-decade highs earlier in the week.

Oil prices also ease after U.S. President Donald Trump says Washington will not attack Iran before next month's U.S. elections, citing productive talks to end a war that has disrupted global energy markets. That combination helps London stocks recover from recent swings tied to energy costs, inflation worries and the outlook for interest rates.

Airtel Money opens flat in its London market debut, one of the city's biggest listings in years after a heavily oversubscribed offer. The stock starts trading at £1.96, matching its IPO price.

Sector losers and stock-specific moves

Telecom stocks rank among the session's weakest performers after SpaceX agrees to acquire a nationwide portfolio of low-band spectrum licences, a deal that paves the way for Starlink Mobile to become a major U.S. telecom operator. Vodafone, Airtel Africa and BT Group fall between 2.5% and 5.4%, placing them at the bottom of the FTSE 100.

On the FTSE 250, SSP Group, owner of the Upper Crust chain, drops 4% after forecasting annual operating profit slightly below its previous expectations. Morgan Advanced Materials jumps 8.7% after RBC Capital Markets upgrades the chip-components supplier and raises its price target, pointing to the sale of its Thermal Products unit and greater exposure to higher-margin aerospace and defence markets.

In our earlier article on how Iran-related disruption is reshaping the outlook for major oil companies, we explained that prolonged tension around Iran and the Strait of Hormuz is boosting the value of refining, trading and regional gas exposure. We also noted that European majors such as Shell, BP and TotalEnergies can benefit from wider refining spreads and stronger trading earnings even as their shares still trade at a discount to U.S. peers.

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