UK equities opened lower and British pound fell to $1.33 as escalating geopolitical tensions surrounding the ongoing conflict between Iran, the United States and Israel weighed on sentiment, with market experts doubtful that the current flare-up will be resolved anytime soon.
In recent updates, U.S. President Donald Trump signaled openness to engaging with Iran’s new leadership, while senior Iranian official Ali Larijani stated that Tehran is not prepared to enter negotiations with Washington.
Markets are heading into a busy week, with sentiment likely to be driven primarily by geopolitical developments and any signs that tensions could begin to ease.
"From a market perspective, we see further downside in the coming days. We had lowered our risk profile early last week as we thought that the market was being too complacent around geopolitical risks. We are still happy to remain in the low risk mode and keeping our powder dry. At some point we would be ready to buy the dip, but that some point seems far for now," according to a Jefferies economist.
As of 0814 GMT, the blue-chip index FTSE 100 fell 0.7% and the British pound fell about 1% against the dollar to 1.3352. DAX index in Germany dropped 2.3%, the CAC 40 in France fell 1.7%.
UK round up Smith+Nephew PLC (LSE:SN) reported fourth-quarter revenues that exceeded consensus expectations by 1.6%, with the company reiterating its full-year 2026 guidance despite ongoing market challenges.
The medical equipment manufacturer posted Q4 underlying revenue growth of 6.2%, outpacing consensus estimates by 1.5 basis points. The company’s second-half EBIT margin came in 7 basis points above consensus, while earnings per share exceeded expectations by 2.6%.
Bunzl (LSE:BNZL) reported full-year results on Monday that aligned with market expectations, showing a slight improvement in organic growth during the fourth quarter and a slower pace of margin decline in the second half of the year.
The company posted revenue growth excluding foreign exchange effects of 3%, reaching the upper end of its 2% to 3% guidance range. Organic growth stood at 0.4%, compared to guidance for flat growth.
Full-year adjusted earnings before interest and tax declined 7% to £910 million, approximately 1% above the consensus estimate of £896 million. The operating margin fell 60 basis points to 7.7%, compared to guidance and consensus of 7.6%. The pace of margin decline improved in the second half, dropping 30 basis points compared to a 100 basis point decline in the first half, driven by North America.
Oxford Nanopore Technologies PLC (LSE:ONT) provided 2026 revenue guidance that fell short of analyst expectations, though the company also projected lower operating expense growth than previously anticipated.
The company expects 2026 revenue growth of 21-25% at constant exchange rates, compared to consensus estimates of 27.5% on a reported basis. At current exchange rates, foreign exchange is estimated to create a headwind of approximately 1.5 percentage points.
For operating expenses excluding depreciation and amortization, Oxford Nanopore guided to growth of 0-5%, below its typical guidance range of 3-8% annually.
BYG announced that CEO Jim Gibson will retire on July 20 following the company’s Annual General Meeting, with Chief Operating Officer John Hunter set to take over as chief executive.
Gibson, who co-founded BYG in September 1998 and has served as CEO since 2003, is credited with leading the company to its current market-leading position. The company started in a 600 square foot office in Bagshot with Gibson and his co-founder in their 30s, bringing property and real estate financial skills to the venture.
UK house prices increased slightly in February, with the average home price reaching £273,176, according to data from Nationwide. Prices rose by 0.3%, or £817, during the month on a seasonally adjusted basis, matching the increase recorded in January.
Year-on-year, house prices were up 1%, or £2,660, compared to February 2025. This represents a marginally higher rate of increase than the 0.99% annual growth recorded in the previous month. Housebuilders have reported that prices have been largely static so far this year.
