The FTSE 100 outperformed Europe in a cautious start to the week, with investors monitoring the latest developments in Ukraine.
‘We are seeing food prices rise and the risk of Russia closing for the gas to Europe can lead to significantly higher gas prices as the war continues in Ukraine. Furthermore, Europe warns Russia on more sanctions given the possible war crimes in Ukraine. Hence, the war between Ukraine and Russia will continue to dominate markets this week,’ said Danske Bank.
The FTSE 100 index was up 6.37 points, or 0.1%, at 7,544.27 early Monday. The mid-cap FTSE 250 index rose 19.44 points, or 0.1%, to 21,237.45. The AIM All-Share index was up 2.07 points, or 0.2%, at 1,047.16.
The Cboe UK 100 index was up 0.2% at 751.60. The Cboe 250 was flat at 18,683.24, and the Cboe Small Companies climbed 0.1% to 15,385.31.
Ukraine's President Volodymyr Zelensky called Russian troops ‘murderers, torturers, rapists, looters’ on Monday after dozens of bodies were found near Kyiv, triggering global outrage and vows of tough new sanctions on Moscow.
Local authorities said they had been forced to dig communal graves to bury the dead accumulating in the streets, including some found with their hands bound behind their backs, in scenes that sent shockwaves through international capitals more than a month into Russia's invasion.
Despite Russian denials of responsibility, condemnation was swift, with Western leaders, NATO and the UN all voicing horror at reports of civilian murders in Bucha, northwest of Kyiv, and elsewhere.
French President Emmanuel Macron said he was in favour of new sanctions against Moscow. France would coordinate such steps with its EU partners, ‘especially Germany’, in the coming days, he said.
In mainland Europe, the CAC 40 in Paris was down 0.4%, while the DAX 40 in Frankfurt was down 0.6%.
Pushing the FTSE 100 higher was Kingfisher, up 2.7% after Deutsche Bank raised the DIY retailer to 'buy' from 'hold'.
At the other end of the large-caps, Aviva was down 1.0% after Barclays downgraded the insurer to 'equal weight' from 'overweight'.
Aviva on Monday said it appointed Charlotte Jones as its new chief financial officer with effect from September 5. Jones previously held the position of CFO at former FTSE 100-listed RSA Insurance Group and interim chief executive officer of the RSA UK & International business.
In the FTSE 250, Just Group was the best performer, up 9.0%, after Barclays upgraded the retirement specialist to 'overweight' from 'equal weight'.
On AIM, Fulham Shore was up 7.7% after the restaurant operator said following the removal of all Covid restrictions in February 2022, customers have continued to return to its Franco Manca and Real Greek restaurants in increasing numbers.
Fulham Shore said strong trading momentum and expansion drove a significant increase in revenue, comparable with the levels seen pre Covid-19.
As a result, it expects revenue, earnings before interest, tax, depreciation and amortisation and adjusted headline Ebitda for the financial year ended March 27 will be ahead of last year's figures and comfortably ahead of market expectations.
Fulham Shore believes that market expectations for the year are currently revenue of £73.4 million, Ebitda of £16.5 million and adjusted headline Ebitda of £9.5 million.
Looking ahead, the firm said rising costs present a challenge to the industry, but it is well-placed to recover this through price hikes.
In Asia on Monday, the Japanese Nikkei 225 index closed up 0.3%. Financial markets in Shanghai were closed for the Tomb Sweeping Day holiday, but were open in Hong Kong. The Hang Seng index was up 1.9% in late trade. The S&P/ASX 200 in Sydney ended up 0.3%.
Hong Kong led gains thanks to a rally in tech firms after Beijing removed a rule preventing US authorities from inspecting the audits of Chinese companies listed in New York.
The announcement came after a drawn-out row between the two countries with Washington saying Chinese firms could be delisted by 2024 if they do not comply with audit requirements.
The demand put at risk more than 200 companies including e-commerce companies Alibaba, JD.com and Tencent.
The pound was quoted at $1.3131 early Monday, up from $1.3108 at the London equities close Friday.
The euro was priced at $1.1040, up from $1.1035. Against the yen, the dollar was trading at JP¥122.60, down from JP¥122.82.
Brent oil was quoted at $105.50 a barrel on Monday morning, up from $105.32 late Friday. Gold stood at $1,930.11 an ounce, firm against $1,928.25.
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