London, June 8, 2026, 10:55 BST
- FTSE 100 slipped 0.28% to 10,339.18 as of 10:33 BST. The FTSE 250 dropped 0.64%, but that was on delayed data.
- BP and Shell opened higher as oil prices surged on fresh Israel-Iran clashes, but airlines and other stocks tied to fuel prices slipped.
- Tate & Lyle jumped after Ingredion reached a cash agreement that puts the British ingredients company’s equity at roughly £2.7 billion.
UK stocks slipped early Monday after oil prices jumped and traders sold out of AI-linked names. Bond yields pushed higher too, which more than offset a strong deal-driven move in Tate & Lyle.
The FTSE 100 slipped 0.28% to 10,339.18 at 10:33 BST. The FTSE 250 dropped 0.64%. Both indexes traded lower.
London stocks faced pressure after two shocks landed Friday. Oil prices jumped when Israel said it hit military sites in Iran. At the same time, investors dumped AI stocks after a worldwide technology selloff and a solid U.S. jobs report raised bets on further rate hikes.
Europe slipped as well. The STOXX 600 touched a two-week low. Tech stocks dragged, and oil-exposed companies saw selling. Main regional indexes closed lower. The FTSE 100, heavier in energy, held up better, but still slipped into the red.
Lars Skovgaard, senior investment strategist at Danske Bank, said, “The market has gone a long way without a correction. The big surprise is not that we had a selloff, but that we didn’t have it before.” Marc Velan, head of investments at Lucerne Asset Management, called the drop “a positioning and momentum unwind” instead of a shift in the long-term AI story. Reuters
BP and Shell added roughly 1.5% each early in London as Brent crude advanced around 5%. Oil producers often benefit when prices rise. IAG, which owns British Airways, slid 2.6%. Rolls-Royce was down 4.3%. Traders pointed to fuel costs and travel demand.
Rates weighed again. The UK 10-year gilt yield climbed 3.5 basis points to 4.93%. A basis point equals one hundredth of a percent. Higher yields tend to hurt stocks by cutting the value of future company profits and pushing up borrowing costs.
Tate & Lyle was the main mover. Ingredion is buying the UK food ingredients company for 595p a share in cash, plus dividends, making the maximum payout 615p a share. The deal values Tate at about £3.8 billion including debt. Tate shares jumped almost 13% to 554p in early trading.
The deal would take Tate & Lyle off the London market and put it inside a bigger player in texture, sugar reduction and nutrition ingredients. Tate chairman David Hearn said the offer allows investors to “crystallise value in cash.” Ingredion chief Jim Zallie called the combined group a “global leader in ingredient solutions.” Investegate
Midcaps got no lift from the local scene. Permanent staff hires dropped in May, the KPMG and REC survey said, marking the sharpest fall since July 2025. But temp billings climbed at their fastest since April 2023. “Ongoing global and domestic uncertainty is making businesses more cautious,” KPMG UK group CEO Jon Holt said. Reuters
BOE’s Alan Taylor said policy is still tight, keeping the debate on rates in play. Taylor said current rates were restrictive and he doesn’t see a reason to hike even with war-driven inflation unless things deteriorate. “I feel comfortable where we are unless we get the worst-case scenario,” he said. Reuters
The bet isn’t all upside. If tensions in the Middle East settle and oil prices slip, the FTSE 100’s energy support could weaken. Oil holding firm means more trouble for airlines and consumer names, and if U.S. inflation comes in hot this week, yields might climb.
Busy week ahead for investors. U.S. CPI lands Wednesday, while the ECB has its policy meeting on Thursday. Markets are watching for details on the SpaceX listing timetable before the week ends. In London, the question is whether deal flow and oil company earnings are enough with rates higher, hiring still soft, and fresh jitters in global tech.
