Early market roundup: European stocks lower as oil prices dip

Blue chip stock prices in London, Paris and Frankfurt opened lower on Monday as investors await Nvidia's half-year results due Wednesday, while a decline in oil prices lead to a fall in shares of oil majors.

Meanwhile in the UK, the government is launching a review into the way business rates are calculated for pubs and hotels in England and Wales, with possible reforms on the cards.

Jerry Schurder, former business rates policy lead at advisory Newmark UK, will lead the independent review into valuations and report back to the Treasury by the end of March 2027.

"Pubs and hotels are vital for communities and bringing growth to every postcode," Financial Secretary to the Treasury James Murray stated. "Last month we announced tax cuts for pubs to give them the breathing room they need. Today we're going further with a rethink of valuations – so that we can build a fairer system for the future."

The government is also launching a call for evidence from landlords, brewers, hoteliers and business owners.

It comes after a 20% cut to business rates bills was announced to ease cost pressures on pubs, social clubs and live music venues from April next year.

The FTSE 100 index opened down 1.80 points at 10,814.76. The FTSE 250 was down 15.11 points, 0.1%, at 24,703.71, and the AIM all-share was up 0.71 points, 0.1%, at 812.67.

The Cboe UK 100 was up marginally at 1,075.33, the Cboe UK 250 was up 0.3% at 21,537.11, and the Cboe small companies was slightly lower at 19,055.69.

Brent oil was quoted at USD92.91 a barrel early in London on Monday, down from USD94.08 late Friday. BP was down 0.8% on the FTSE 100, while Shell lost 0.1%. On the FTSE 250, Harbour Energy lost 1.6%.

Oman's foreign minister will travel to Iran on Tuesday, Iran's foreign ministry said, as Tehran and Muscat seek a way to regulate the passage of ships through the Strait of Hormuz.

Badr al-Busaidi will hold the "ongoing political consultations between the two sides, as two littoral states of the Strait of Hormuz, to help strengthen peace and security in the region," Iran's foreign ministry spokesman Esmaeil Baqaei said in a statement.

Still, markets are bracing for the impact of the planned new US wave of economic sanctions against Iran.

In European equities on Monday, the CAC 40 in Paris was down 0.2%, while the DAX 40 in Frankfurt was down 0.3%.

The pound was quoted higher at USD1.3646 early Monday, compared to USD1.3625 Friday. Against the euro, sterling rose to EUR1.1685 from EUR1.1672 a day prior. The euro stood flat at USD1.1673. Against the yen, the dollar was trading higher at JPY159.12 compared to JPY159.03.

In Asia on Monday, the Nikkei 225 index in Tokyo was down 0.7%. In China, the Shanghai Composite was down 0.6%, while the Hang Seng index in Hong Kong was down 1.9%. The S&P/ASX 200 in Sydney closed up 0.5%.

In the US on Friday, Wall Street ended higher, with the Dow Jones Industrial Average up 1.0%, the S&P 500 up 0.4% and the Nasdaq Composite up 0.4%.

US bond yields retreated on Monday, having risen last week after US Treasury Secretary Scott Bessent said the Treasury Department would increase bond buybacks to at least USD4 billion per operation from its USD2 billion commitment before.

The yield on the US 10-year Treasury was quoted at 4.71% on Monday, narrowing from 4.74% late on Friday. The yield on the US 30-year Treasury was quoted at 5.25%, narrowing from 5.27%.

Gold was quoted higher at USD4,637.83 an ounce against USD4,605.34. On the FTSE 100, miner Antofagasta gained 1.3%, while Anglo American gained 1.2%.

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