Market Overview

The FTSE 100 increased by 0.25% on Friday, July 10, 2026, as easing diplomatic contacts between Washington and Tehran reduced investor anxiety. The index’s gain outperformed the German DAX, which fell 0.13%, and the French CAC 40, which edged up 0.15%. Sterling remained above the $1.34 threshold, trading at $1.3421, up 0.1% against a softer U.S. dollar.

Geopolitical Context

Regional mediators—including Qatar, Saudi Arabia, Pakistan, Turkey and Oman—intensified efforts to revive U.S.–Iran diplomacy after the United States struck roughly 170 targets along Iran’s coast, a scale 17 times larger than the late‑June salvo. Iran responded with missile and drone attacks on Kuwait, Bahrain, Qatar and Jordan. No further significant strikes were reported overnight into Friday. Iran’s foreign minister held calls with counterparts in Oman, Turkey, Saudi Arabia and Pakistan, while U.S. President Donald Trump spoke with Israeli Prime Minister Benjamin Netanyahu on Gulf‑related moves. The U.S. Navy continued urging commercial vessels to use the southern Strait of Hormuz route; shipping‑tracking data show traffic through the strait remains well below pre‑conflict levels, with no large vessels observed on the southern route since July 7. Israel carried out more than 20 strikes in Lebanon, citing Hezbollah ceasefire violations. Iran concluded state‑funeral ceremonies for former Supreme Leader Ali Khamenei in Mashhad.

Corporate Highlights

  • Apollo Global’s easyJet bid: Apollo Global announced an agreed‑in‑principle takeover offer of £5.7 billion for easyJet, valuing the airline at £7.15 per share. The proposal eclipsed a competing offer from Castlelake and propelled easyJet shares up 14.82%.
  • Vodafone stake sale: Vodafone shares rose 13.13% after UAE‑based e& agreed to sell its 16.3% holding to Xavier Niel‑backed vehicle Vega for $5.95 billion, representing a 13% premium to the market price.
  • Hays profit outlook: Hays plc shares surged 15.17% following the recruiter’s forecast that FY2026 operating profit would sit at the top end of market expectations, with cost‑cutting measures offsetting a slowdown in recruitment activity.
  • MJ Gleeson performance: Housebuilder MJ Gleeson’s shares increased 4.51% despite the company warning that geopolitical risks and possible UK policy changes could pressure its FY2026 outlook; the firm reported annual profit in line with expectations.

Commodity and Currency Movements

Brent crude fell 0.7% to $75.76 per barrel, while U.S. WTI crude declined 1.14% to $71.25. Gold futures slipped 0.5% to $4,119.92 an ounce, and spot gold dropped 0.5% to $4,111.50.

Political Developments

Andy Burnham remained one nomination short of an uncontested Labour leadership bid, with confirmation expected the following week and a handover to the prime minister targeted for July 20.