FTSE 100 FINISH LINE 13/4/26 

London stocks fell early on Monday as Middle East tensions flared again after the U.S. moved to block Iranian shipping when weekend peace talks collapsed. Investor sentiment turned cautious as the breakdown in negotiations between Washington and Tehran pushed oil prices back above $100 a barrel. Both major London indexes had risen last week on hopes generated by a temporary two-week ceasefire, but that fragile truce now appears to be unravelling. However, mirroring an improvement in sentiment on Wall Street after reports that Iranian officials may consider abandoning uranium enrichment as part of a deal to end the war, the FTSE recovered from early losses and moved back into positive territory heading into the close to trade up 0.75% on the session. In response to rising energy costs tied to the conflict, Finance Minister Rachel Reeves is expected to set out plans later this week to support affected businesses

Bank stocks came under pressure, with HSBC and Barclays falling 1.1% and 1.3%, respectively. Energy shares, by contrast, gained as higher oil prices lifted Shell and BP by around 1.8% each. Travel and leisure stocks struggled under the weight of rising fuel costs. Carnival experienced a 3.9% decline, while airlines faced even greater losses, with EasyJet down 4.3% and Wizz Air tumbling 7.3%. Bernstein downgraded Wizz Air from "outperform" to "market-perform," adding to the pressure. Elsewhere, homebuilder Vistry named Adam Daniels as its new chief executive, though its shares still fell 4.9% amid the broader market weakness. On a more positive note, fintech group Wise rose 5.3% after reporting a 26% increase in fourth-quarter cross-border transaction volumes.

Morningstar analysts have drawn attention to British homebuilder stocks, considering many of them "deeply discounted" due to the Iran war's impact on the macroeconomic landscape. UK house prices fell last month due to rising mortgage rates, resulting in a 28% decline in FTSE 350 homebuilder stocks since February, compared to a 3.6% drop in the FTSE 350 index overall. Morningstar identifies Bellway and Barratt Redrow, down 29% and 32%, respectively, this year, as undervalued stocks to consider. They also mention Persimmon, Taylor Wimpey, and Berkeley Group. Despite inflation concerns, Morningstar's economist Grant Slade anticipates inflation will decrease to 2.2% by year-end, with a potential interest rate cut from the Bank of England. Berkeley has recently warned of slowing profit growth and paused land purchases, while Bellway has adjusted its profit margin outlook. In contrast, Persimmon has a positive outlook for 2026 and is Morningstar's top pick, trading at a 50% discount after previously reaching its "fair value" before the war.

TECHNICAL & TRADE VIEW – FTSE100

Daily VWAP Bearish

Weekly VWAP Bullish

Above 10500 Target 11000

Below 10300 Target 10100