London, June 2, 2026, 08:19 BST
- FTSE 100 rises 0.28% early, recovering some ground after the Middle East-driven drop on Monday.
- EasyJet is still under the microscope as Castlelake’s interest puts the spotlight on the June 26 bid deadline.
- Oil prices, signals from UK inflation, and soft housing numbers are still the main risks.
FTSE 100 ticked up in early London trading on Tuesday, picking up some ground after Monday’s drop. Investors weighed weaker oil prices with new takeover moves for struggling UK stocks.
The blue-chip index climbed 0.28% to 10,367.71 by 08:03 BST, after opening between 10,355.28 and 10,374.44. Brent crude dropped 0.57% to $94.44. Falling oil prices took some pressure off stocks that lost ground a day before.
FTSE slides as Middle East jitters weigh on UK stocks Monday’s drop was sharper than a typical down day. The FTSE 100 slipped 0.68%, while the FTSE 250 fell 0.77%. Investors saw fresh signs that the Middle East conflict is spilling into higher energy prices, pressure on supply chains, and renewed fears about UK inflation.
London markets were open as usual. The London Stock Exchange operates from 0800 to 1630 in the Europe/London time zone, which is on British Summer Time. Tuesday was a regular trading day, with no holiday.
EasyJet shares stood out again after the airline said Monday it had not received any approach or proposal from Castlelake. The company said it would review any offer if one comes in. The board said the timing looked “highly opportunistic” with the share price hit by Middle East uncertainty, softer customer confidence and jet fuel costs. London South East
Castlelake said it owns 16.24 million shares in easyJet, around 2.14% of the airline, and puts any possible bid at not less than 403.23 pence a share. The U.S. investment firm has a deadline of 1700 London time on June 26 to make a firm offer or pull back, under UK takeover guidelines.
Analysts said the interest signals some overseas buyers still see UK-listed assets as cheap. “Few people can resist a bargain,” IG’s Chris Beauchamp said. Deutsche Bank’s Jaime Rowbotham noted easyJet “looked cheap” for a while. Barclays’ Andrew Lobbenberg reckoned its fleet, slots and holidays business could be worth north of £11 a share. easyJet has trailed European rivals like Ryanair and British Airways owner IAG, sitting between budget and legacy carriers. Reuters
Drax to buy Bluefield Solar Income Fund in £561 million deal; Bluefield shares jump Deal news lifted the mood. Drax said it will acquire Bluefield Solar Income Fund, valuing the renewable energy firm at about £561 million and adding more UK solar, wind, and small-scale wind projects to Drax’s portfolio. Bluefield shares surged Monday after the news. Drax gained slightly.
UK factory prices climbed at the fastest rate since June 2022 last month, according to S&P Global’s PMI survey. The headline UK manufacturing PMI hit 53.9 in May, the best reading since May 2022. The survey showed new cost pressures from energy, materials, and supply chain problems. The broader market mood stayed wary.
UK house prices posted a monthly drop in May, Nationwide said, with prices down 0.6% from April. That’s the first fall since December. Yearly growth slowed to 1.7% from 3.0% in April. “Consumer confidence has weakened noticeably since the start of the conflict,” said Nationwide chief economist Robert Gardner. Reuters
Bounce in equities early Tuesday could stall if oil prices move up again or if traders think the Bank of England can’t lower rates. Another climb in crude or signs that higher costs are reaching beyond energy and into wider goods and services would likely pressure travel stocks, retailers and housebuilders. That could also mean M&A talk does less for the index.
