Oil prices fell back from earlier highs on Monday after Tehran announced the end of its military operations against Israel, calming fears of a broader regional conflict. Brent crude dropped to $94.58 a barrel, having spiked above $98 earlier in the day, following Iranian reports that offensive operations were halting.
European stock markets recovered from initial losses, with the pan-European Stoxx 600 index turning slightly higher after a volatile start. London’s FTSE 100 closed up 5 points, or 0.05 per cent, at 10,373, though housebuilders’ shares fell on concerns that geopolitical tensions could keep borrowing costs elevated.
Wall Street rallied in afternoon trading, with the S&P 500 rising 0.8 per cent, as some investors seized on Friday’s sell-off to buy the dip. This lifted hopes that the previous session’s decline, which saw the chip sector plunge 10 per cent, was not the start of a wider downturn. However, South Korea’s KOSPI index slumped 8 per cent, highlighting persistent fragility in tech valuations.
In the UK, recruitment firms reported a shift towards hiring temporary workers over permanent staff amid economic uncertainty. Meanwhile, the Financial Conduct Authority launched civil proceedings against fund manager Neil Woodford, accusing him of providing unauthorised investment advice through a subscription platform. The FCA is seeking an injunction to halt the activities.
US households have grown more pessimistic about their finances, with a New York Fed survey showing the share of Americans seeing their situation as “much worse” than a year ago leaping to 13.3 per cent, the highest since July 2022. Overall, 43.7 per cent reported a worse situation, the highest since January 2023.
