Market Report

U.K. stocks opened higher on Monday, with energy stocks surging amidst fears of a widening conflict in the Middle East.  European stocks were mixed as signs of escalating tensions in the Middle East offset hopes for more interest rate cuts from the Federal Reserve this year.

U.S. Stocks Give Back Ground, after moving mostly higher early in the session the major averages have pulled back well off their highs of the session, with the S&P 500 dipping into negative territory. The early strength on Wall Street partly reflected optimism ahead of the release of earnings news from several major technology companies.

Microsoft (MSFT), Meta Platforms (META), Apple (AAPL) and Amazon (AMZN) are among the companies due to report their quarterly results this week.

Buying interest waned shortly after the start of trading, however, as traders seemed reluctant to make significant moves ahead of the Federal Reserve's monetary policy meeting this week.

Gold prices rose toward $2,400 per ounce on Monday as tensions in the Middle East showed little sign of abating.

Oil prices were subdued on Monday, heading into this week's meeting of the Organization of Petroleum Exporting Countries (OPEC) and its allies. Prices were flat to slightly lower in European trade after falling by 1.5 percent on Friday amid persistent concerns over top importer China.

In corporate news, Reckitt Benckiser was under the cosh amid concerns about potential litigation, after a US jury found on Friday that infant formula by Abbott Laboratories had caused a girl to develop a dangerous bowel disease.

Abbott was ordered to pay $495m in damages. This consisted of $95m compensatory damages and $400m punitive.

Dan Coatsworth, investment analyst at AJ Bell, said: "Reckitt’s shares have been severely depressed since March as the market worries about the scale of any potential liabilities if the company loses legal battles around the safety of its baby formula.