FTSE 100 Live: Stocks open higher as oil price softens, miners and airlines rebound

<p>Diploma surges to new high on upbeat trading update</p>
<p>Oil in focus as prices ease then rebound</p>
<p>10.08am: Investors embracing any good news they can</p>
<p>The reported deal between Iraq and Turkey to restart oil supplies has "helped to calm financial markets," says market analyst Russ Mould at AJ Bell and provide "relief to investors on the edge of their seats amid worries about disruptions to oil supplies".</p>
<p>Brent prices have inched back up to above $103.3 a barrel, essentially flat.</p>
<p>Getting the energy prices to move significantly lower depends on resolving issues around the Strait of Hormuz, says Mould.</p>
<p>"Investors are embracing any bit of good news they can, hence why markets pushed higher across Europe."</p>
<p>With this a big week for central banks and interest rates, he says the Middle East crisis "could put any monetary changes on ice.</p>
<p>"It’s a wait and see situation as policymakers get to grips with whether an inflation shock will be short lived or a long-lasting pain to fight."</p>
<p>9.50am: Is it right that markets are so calm?</p>
<p>Markets appear calm, almost sanguine, but major Middle East disruption risks a more severe global supply shock than Russia's invasion of Ukraine. .</p>
<p>Economist Kallum Pickering at Peel Hunt says he thinks the market calm reflects “an assumption that the war will be over soon” and that prolonged conflict is a “tail risk”.</p>
<p>Investors see the impact as “too serious to fully contemplate”, expecting US President Donald Trump to take “an off-ramp”. Given the TACO trade (Trump Always Chickens Out), that has some merit.</p>
<p>However, risks are rising, says Pickering, with only a “three- or four-week buffer” before widespread shortages emerge.</p>
<p>He warned that if markets reassess and see disruption as lasting longer, a “more aggressive sell-off could unfold” as supply shocks deepen and strain growth, inflation and financial conditions.</p>
<p>9.17am: Moonpig and Softcat jump</p>
<p>Top of the FTSE 250 risers are Moonpig Group and Softcat.</p>
<p>Online card seller Moonpig is up 7.2% after a year-end statement suggesting that trading was in line with expectations and that full-year targets are intact.</p>
<p>"Moonpig's core trading has been strong, staying up in the high single digits," says Peel Hunt analyst Jonathan Pritchard.</p>
<p>Netherlands-focused Greetz has been "solid", and Experiences have "shown a bit of recovery".</p>
<p>The plans for a further £65 million share buyback "was expected, but its announcement is a nod to management's confidence".</p>
<p>Softcat is also up over 7%, with its shares having fallen over 40% between last summer and this month.</p>
<p>The IT infrastructure reseller has posted bumper first-half results and upgrading its full-year profit guidance, citing surging corporate demand for AI-ready infrastructure.</p>
<p>Peel Hunt's Damindu Jayaweera says all the key financials were ahead of expectations, and "especially impressive given half of the large deal that was expected in 1H has slipped into 2H".</p>
<p>8.51am: Unilever to sell food brands?</p>
<p>Unilever is reported by Bloomberg and Dow Jones to be in the early stages of weighing a potential spin off of its food brands, including the likes of Marmite, Hellmann's and Knorr.</p>
<p>The report said the transaction would value Unilever’s food brands at tens of billions of dollars.</p>
<p>"Unilever is under pressure to streamline the business and focus on power brands given the underperformance of its share price over the past five years versus the FTSE 100 and other global consumer goods companies like Nestle and P&amp;G," says market analyst Victoria Scholar at Interactive Investor.</p>
<p>"The hope is that Unilever can improve its outlook by shifting its focus more towards beauty and personal care where margins have historically been higher and there is less room for consumers to trade down to cheaper own-brand alternatives.</p>
<p>A food separation Unilever would follow the recent demerger of the Magnum Ice Cream Company and the sale of its spreads business in 2017-18.</p>
<p>"A broader move away from food might also appeal to investors given the rise in weight loss drugs that is creating a cloud of uncertainty in the food sector, particularly among unhealthier options, and looks set to reshape consumer demand in a way that is yet to be fully understood," says Scholar.</p>
<p>8.28am: Diploma's performance is 'exceptional'</p>
<p>The unscheduled trading update from Diploma is "exceptional", says analyst Sam Dindol at Stifel.</p>
<p>In the statement, the group reported strong first-half growth, with its Peerless Aerospace arm expected to deliver "outstanding" organic growth, while organic growth excluding the December 2024 acquisition were also strong and well ahead of the targeted 5% organic growth per year.</p>
<p>"Having delivered 14% organic growth in 1Q, the upgrade to organic growth guidance is not a complete surprise," says Dindol.</p>
<p>"We did not anticipate the scale of the upgrade to the operating margin guidance from c.22.5% to c.25%, and a key focus [of the conference call] will be where does the group see sustainable margins going forward."</p>
<p>8.15am: FTSE opens higher, led by Diploma, miners and airlines</p>
<p>The FTSE 100 has started higher, led by rebounding miners, airlines and housebuilders.</p>
<p>Top of the leaderboard is Diploma, up 16% to a new all-time high as the maker and distributor of specialist engineering parts upgraded its full-year profit forecast by around 13% above analyst expectations.</p>
<p>Next, come a trail of companies whose shares have been hit by the war in the Middle East, including miners Antofagasta and Anglo American, airlines IAG and easyJet, housebuilders Persimmon and Barratt Redrow.</p>
<p>7.59am: Moonpig notifies of new buyback</p>
<p>Moonpig has also announced plans for a new buyback, sending a short update notifying that it plans a further £65 million share buyback programme for its next financial year.</p>
<p>The online greetings card and gifting company reported trading in line with expectations for the year to April, with adjusted earnings per share growth to come in at the top end of its 8% to 12% guidance range for the year ending 30 April 2026, helped by strong cash generation and the benefit of existing buybacks.</p>
<p>Underlying profits (EBITDA) were said to be on track to grow by a mid-single digit percentage, with Moonpig's UK business delivering high single digit revenue growth.</p>
<p>7.31am: Pru tops up buyback and dividend after profitable year</p>
<p>The full-year dividend was raised also 15% to 26.60 cents per share.</p>
<p>New business profit came in at $2.78 billion, just ahead of the City consensus of $2.75 billion, with margins at 42% also better than the 41% expected.</p>
<p>Chief executive Anil Wadhwani said: "Structural demand for our products in Asia and Africa continued to rise, driven by the increasing protection, retirement and wealth needs of our customers."</p>
<p>Looking ahead, he said: "our focus remains firmly on high‑quality, sustainable growth, disciplined capital allocation and delivering long‑term shareholder value. We carry the momentum of 2025 into 2026 and are confident in our double-digit growth trajectory across our key metrics, putting us firmly on track to achieve our 2027 financial objectives."</p>
<p>7.17am: FTSE 100 predicted to open higher as oil price softens</p>
<p>The FTSE 100 is predicted to continue bouncing back on Wednesday as oil prices soften slightly and markets wait to hear more central bank responses to the inflationary pressures emanating from the conflict in the Middle East.</p>
<p>London's blue-chip index is predicted to rise around 13 points, according to the futures market, after yesterday climbing 85.9 points to 10,403.6.</p>
<p>Overnight, US stocks also finished up for the day, with the tech-powered Nasdaq leading the way with a 0.5% gain, while the Dow Jones and 47 points, or 0.1%, while the S&amp;P 500 added 0.25% and the Dow Jones 0.1%.</p>
<p>Energy markets are still a key focus, with Brent crude easing 1.8% to $101.55 a barrel, seemingly on an arrangement for Iraq to resume oil exports through Turkey and the Kurdistan region to avoid the need to ship through the Strait of Hormuz, where traffic remains at almost a total standstill.</p>
<p>There appears to be "a bit more calm in markets at the moment and a small hint that there is a decoupling from the price of oil", says Jim Reid, macro analyst at Deutsche Bank, noting that the past 24 hours have seen more positive risk markets and lower government bond yields in spite of Brent crude closing above $100 a barrel for a fourth consecutive session.</p>
<p>He says this comes amidst "hopes growing that the Fed and other central banks meeting this week wouldn’t sound too hawkish in response to recent developments".</p>