FX.co ★ FTSE 100 Trades Cautiously

The FTSE 100 remained relatively stable on Monday as investors carefully analyzed the rising tensions in the Middle East, exacerbated by the U.S.'s involvement in Israeli airstrikes on Iran. Investor sentiment was varied; defensive stocks and energy giants like BP and Shell saw gains of 1.3% and 0.8%, respectively, benefitting from climbing oil prices. Conversely, stocks associated with the travel industry faced downward pressure, with easyJet dropping over 2% and IAG falling nearly 1%, driven by worries over possible travel disruptions. Meanwhile, BAE Systems, a defense sector stock, decreased by more than 1% as market participants reconsidered the potential consequences of an extensive military conflict. On the economic data front, S&P Global's UK flash composite PMI for June slightly exceeded expectations, registering at 50.7, which indicates modest growth within the private sector. The manufacturing sector contracted less severely than anticipated, scoring 47.7, while the services sector met predictions with a reading of 51.3. All sectors demonstrated improvement from May, suggesting a degree of resilience within the UK economy despite the challenges posed by geopolitical tensions.