London's FTSE 100 ended Monday's session virtually unchanged, closing up just 5 points (0.05%) at 10,373, after a volatile day driven by geopolitical tensions in the Middle East. Oil prices, which had surged earlier on news of attacks between Israel and Iran, retreated sharply after Tehran announced an end to its military operations against Israel.
Brent crude, which had hit $98 per barrel earlier in the day, fell back to around $94.56, up about 1.5% on the day. The de-escalation helped calm broader financial markets, with European indices recovering and Wall Street's S&P 500 gaining 0.8%.
Despite the overall calm, housebuilders' shares declined on concerns that the ongoing conflict could keep borrowing costs elevated. Meanwhile, South Korea's KOSPI index slumped 8% on Monday, highlighting persistent fragility in tech valuations.
Investors appeared to engage in 'buy the dip' behavior following Friday's sell-off, which saw the chip sector plunge 10%. Joe Mazzola of Charles Schwab noted that stocks scrambled higher early in the session, though inflation data due later this week could reinforce worries about expensive crude spilling into the broader economy.
In other news, the Financial Conduct Authority (FCA) has initiated civil proceedings against fund manager Neil Woodford, accusing him of providing regulated investment advice and making financial promotions without authorisation through his platform W4PZ. The FCA is seeking an injunction to halt the potentially unlawful activities.
