FTSE 100 Gains on Vodafone and easyJet Deals as Geopolitical Risks Persist
Market Overview and Key Drivers
July 10 (Reuters) - London's FTSE 100 inched up on Friday, supported by deal-driven gains in Vodafone and easyJet, though Middle East tensions kept a lid on further upside.
The blue-chip FTSE 100 index rose 0.08% to 10,480.31 points by 1053 GMT, while the midcap FTSE 250 gained 0.1%. However, both indexes remained on track to post weekly losses.
Major Movers in the FTSE 100 and FTSE 250
Vodafone Surges on Stake Sale Deal
• Vodafone jumped 12.6% to the top of the FTSE 100 after the UAE telecoms group e& said it would sell its stake in the British telecoms company to the family investment vehicle of French billionaire Xavier Niel in a deal valued at nearly $6 billion.
easyJet Leads FTSE 250 on Takeover Approach
• easyJet rose 14.5% to top the FTSE 250 after the budget carrier agreed in principle to a 5.7 billion-pound ($7.65 billion) takeover approach from Apollo Global, helping travel and leisure stocks lead sectoral gains, up 1.6%.
Other Notable Gainers
Industrial Metal Miners
• Industrial metal miners followed, gaining 0.8%, with Atalaya Mining, Antofagasta and Rio Tinto rising between 1.4% and 1.8%.
Recruitment Sector
• Shares of Hays rose 13.8% after the recruiter said it expects annual operating profit at the top end of market expectations, helped by cost cuts and improved consultant productivity.
Geopolitical and Sectoral Headwinds
Middle East Tensions Impact Market Sentiment
• Renewed Middle East tensions weighed on investor sentiment after Iranian forces attacked U.S. military infrastructure in Gulf states, further undermining a three-week-old ceasefire and raising uncertainty over the conflict's trajectory.
Investment Banks and Brokerages Decline
• Investment banks and brokerages fell 0.8%, with St. James's Place among the FTSE 100's worst performers, sliding 8.7% following a report that Sovereign Wealth — one of the money manager's largest partner firms — was in talks to join a Swedish wealth management group.
Political Developments
Andy Burnham's Rise in Labour Party
• On the political front, Andy Burnham moved closer to becoming Britain's next prime minister after securing overwhelming backing from Labour lawmakers, putting him in a strong position to succeed Keir Starmer.
(Reporting by Tharuniyaa Lakshmi in Bengaluru; Editing by Vijay Kishore)
