Business news live: FTSE 100 rises after opening low, oil climbs after US strikes

France’s CAC 40 and Germany’s DAX both opened in the red today along with London’s FTSE 100 – but all three are now looking rather healthier after clawing back some ground.

Indeed, the FTSE 100 has inched over the line into positive territory… 0.02 per cent up for the day. Well, up is up.

The DAX is 0.07 per cent down, and it’s just 0.02pc in the red for the CAC 40.

We’ll keep an eye on further changes as the morning progresses – though it’s maybe once the US wakes up and any new news emerges that there might be more of a reaction today.

The UK is lobbying hard for South Korea to switch from GE Aerospace to Rolls Royce when it builds out a new fleet of fighter jets, the FT report.

Rolls Royce, a listed FTSE 100 firm, last week were celebrating winning a UK government contract regarding nuclear reactor plans and the defence firm could claim another key win here if talks pay off.

“Rolls-Royce’s involvement would de-risk the project and accelerate the timeline,” said a British official. “This is not about simply selling engines to South Korea. It is about developing a new engine together and seeing that relationship through to the end of the engine’s life.”

The FT carried a quote from South Korea’s defence agency saying: “No decision has been made yet on whether we will co-develop the engines with foreign engine makers or with which foreign company to partner with.”

Oil prices surged to a five-month high and Asian share markets tumbled as global trading resumed for the first time since the US joined Israel in striking Iranian nuclear facilities, jolting investors and raising fears of wider regional instability.

Investors were waiting to see how Iran would respond after Tehran vowed that the American attack would have “everlasting consequences” and declared that it was keeping all options open.

The attack targeted three Iranian nuclear facilities early on Sunday morning.

Global crude oil benchmark Brent jumped 2 per cent after rallying as much as 5.7 per cent when the market opened on Monday. The price reached $81.40 per barrel, the highest in five months, before giving up some of the gains.

Another firm could be set to leave the London Stock Exchange, after Spectris agreed a £3.8bn bid to buy them out by private equity firm Advent.

Another firm, Kohlberg Kravis Roberts, are also in discussions but they are again a private firm so either way, a removal from the FTSE 250 would be the outcome.

Spectris, which makes high precision instruments and software, has seen its shares rise 14 per cent this morning on news of the bid.

As expected, it’s a red tide for the FTSE 100 early on, down 0.34 per cent immediately after opening, with the FTSE 250 down 0.25 per cent too and AIM mostly flat.

Within the biggest 100 companies, the largest falls come for airline stocks predictably; Easyjet is down 2.47 per cent and British Airways owner IAG down 1.82 per cent.

Only six companies have opened in the green, with BP and Shell predictably the top two within those, 1.92pc and 1.21pc up respectively.

Electricity costs for thousands of businesses will be cut by scrapping green levies to help them compete with foreign rivals.

The prime minister said the plan marks a “turning point for Britain’s economy” by supporting key industries where there is potential for growth.

Manufacturers have warned “crippling” power costs are far higher for UK businesses than competitors overseas.

UK shares face a mix of factors heading into the new week but are poised to open slightly lower this morning.

That’s no doubt down to the weekend events with the US’ strikes on Iran, though that could have impacts in both directions as far as the FTSE 100 goes.

Uncertainty isn’t good for stock markets and we don’t yet know Iran’s response, but higher oil prices – as an example – will benefit a couple of big hitters such as BP and Shell.

Overnight in Asia, stocks are down in the Nikkei 225 by 0.15 per cent, but up in the Hang Seng by 0.6 per cent.

Here’s a quick recap of the biggest news from the end of last week:

Good morning and welcome to another week in the business world with The Independent.

We’ll keep you up to date with all the incoming business news and latest movements in the stock market across Monday, as well as what you might have missed from over the weekend.