Key events

55m agoShell finalizes agreement to divest South African fuel operations to UAE state energy firm
1h agoFTSE 100 starts the day higher while European equities trail
1h agoYoung's pubs report World Cup related gains
2h agoOil prices climb following reports of vessel attack in Hormuz strait
2h agoUK house prices show modest gain marking first rise in four months per Lloyds
2h agoIntroduction: UK house prices show slight increase in June

In the FTSE All-Share index construction specialist Keller Group leads with shares advancing 18% after a positive trading statement.

Chemicals firm Victrex follows closely with a 17% share rise after reporting sustained expansion in its aerospace and electronics segments.

Capita lags as the weakest performer with shares falling 16% following an apology over delays in handling the civil service pension scheme.

Shell agrees to sell South African fuel business to UAE's state energy company

Shell shares gain further ground after agreeing to offload its South African fuel supply operations to UAE state energy company Adnoc Distribution.

The $1bn (around £750m) transaction includes 580 service stations plus related assets and is slated to finalize next year according to Adnoc.

Adnoc Distribution chief executive Bader Saeed Al Lamki noted the acquisition aligns with confidence in South Africa's promising and well overseen fuel retail market. The business recorded fuel volumes near 3.5bn litres and ran 360 convenience stores as of 2025.

Adnoc Distribution listed on the UAE exchange stated the purchase should lift earnings per share by 6% in the first full year post completion.

Shell shares have risen 2.5% today.

FTSE 100 opens higher, European stock market lags

The FTSE 100 has begun the session 0.3% higher supported by a 2.2% advance in Shell shares following its morning update.

This leaves UK markets ahead of Europe where the Stoxx Europe 600 slips 0.1% pressured by technology stocks including French chip materials maker Soitec which fell over 7%.

Young's pubs get World Cup boost

Further signs that the football World Cup is aiding UK pubs: Young & Co reported like-for-like sales rose nearly 6% in the first 14 weeks of its financial year aided by good weather and increased custom from the tournament.

Overall revenue climbed 9.4% for the period from March 31 to July 6 helped by the Cubitt House acquisitions and rose 5.5% on a like-for-like basis.

Chief executive Simon Dodd commented:

Our premium well invested and distinctive pubs and rooms keep performing strongly with Young's outlets showing solid results in the opening quarter. This was helped by good weather a packed summer sports schedule including England's World Cup progress and input from our larger portfolio as we absorb the Cubitt House sites.
Although conditions stay tough we remain well placed and view the rest of the year positively.

Shares in the company are 2.9% higher this morning.

Also today oil major Shell indicated gas trading results for the second quarter should be markedly stronger than the prior period.

It cautioned however that production will be notably lower than the first quarter due to Middle East tensions including a production halt at its Qatar gas to liquids plant after an incident at Ras Laffan Industrial City in mid March.

Integrated gas output for April to June is projected at 610000 to 650000 barrels of oil equivalent per day down roughly 30% from 909000 boed in the first quarter. Earlier guidance had been 580000 to 640000 boed.

Oil prices rise after reports of attack on vessel in strait of Hormuz

Despite hopes for reduced uncertainty oil prices have increased following an attack on a vessel in the strait of Hormuz a vital route previously affected by regional conflict.

Brent crude has risen 1.1% returning above $72 per barrel. Reports indicate a liquefied natural gas carrier was struck by a projectile near the Omani coast while leaving the strait early Tuesday.

Tom Bill head of UK residential research at Knight Frank noted house prices are moving sideways due to elevated mortgage rates since the Middle East conflict began.

The positive aspect is that geopolitical tensions are easing as parties progress toward a truce and mortgage rates are declining slightly. The negative side is rising domestic political risks with repeated speculation over property tax changes which may limit activity and prices this summer.

Meanwhile Amy Reynolds head of sales at Richmond agency Antony Roberts observed the market is largely stable as expected given fixed rate mortgages have remained high partly due to lender capacity issues.

The encouraging development is that brokers are noting initial improvements in fixed rates not back to sub 4% levels seen six weeks ago but a real reduction from recent peaks.
If this trend holds it should encourage more buyer activity in coming months rather than the hesitant stance that has limited price growth.
We also see growing interest in tracker mortgages linked to base rate as buyers manage uncertainty while retaining flexibility to switch to fixed deals later. Overall these numbers reflect the height of the rate pressure rather than a fresh downturn and point to a steadier market ahead with cautious optimism warranted.

Modest rise in UK house prices is the first increase in four months, Lloyds says

The 0.2% month on month increase in UK house prices for June marks the first gain in four months according to Lloyds. Prices had declined 0.2% in May.

Bryden noted annual growth for first time buyers improved to 0.8% in June from 0.3% in May. The typical first time buyer property now averages £240433 per Lloyds data.

London stays the priciest UK market with an average home at £534831 though prices there dropped 1.1% year on year in June. The south east performed weakest regionally with prices down 2% annually.

Scotland ranked second after Northern Ireland where prices rose 3.9% to an average £223277.

In Wales prices increased 0.9% annually to £231142. The north east of England saw a 2.8% rise to £181133 while the north west recorded a 2.4% gain to £248218.

Introduction: UK house prices inch higher in June

Good morning and welcome to our rolling coverage of business financial markets and the global economy.

UK house prices rose 0.2% in June versus the prior month according to Lloyds data.

The average home value stands at £299330 compared with £298812 in May.

Year on year prices are 0.6% higher slightly above the 0.5% rate recorded in May. Northern Ireland leads with annual growth of 7.4%.

Amanda Bryden head of mortgages at Lloyds said the data reflect broader economic uncertainty.

Recent price movements continue to mirror wider economic uncertainty including effects from global events on inflation and rate expectations. Although affordability remains tight for many mortgage rates have eased from peaks providing some relief for potential movers.
While recent data show new mortgage approvals fell in May this was anticipated after earlier rate spikes and activity should recover if borrowing costs keep declining.
Looking forward we anticipate the housing market will proceed at a steady pace. Lower borrowing costs may support demand though affordability issues persist. The house price outlook hinges mainly on continued inflation moderation and gradual improvement in household confidence.

Overnight Asian equities fell broadly with pressure on chip stocks. The MSCI Asia Pacific index declined 1.4%.

Samsung Electronics shares dropped as much as 10% despite a sharp profit increase while chipmaker SK Hynix fell 6% and South Korea's Kospi index slipped 5.3%. An earlier 8% drop prompted a brief trading halt.

The agenda

7am BST: Lloyds house prices for June
9.30am BST: Fiscal risks and sustainability report from the Office for Budget Responsibility
10.30am BST: Bank of England Financial Stability report
1.30pm BST: US May trade balance