UK and European markets closed higher, gaining ground through the afternoon as investors reviewed the geopolitical situation in the Middle East.
The yen hit three-month lows, as Japan’s ruling coalition’s election loss raises political and monetary policy uncertainty, while the U.S. dollar headed for its biggest monthly gain since April 2022.
U.S. crude oil sold off steeply, putting the benchmark on pace for its worst day in more than two years after Iranian energy facilities were not damaged during an Israeli attack over the weekend.
Gold’s record rally took a breather as U.S. Treasury yields and dollar gained the upper hand, while investors awaited a series of U.S. economic data due this week.
Lloyds Banking Group updated the market on recent Court of Appeal rulings concerning motor commission arrangements on Monday, which set a new standard for motor dealers acting as credit brokers, requiring them to disclose commissions paid by lenders more comprehensively to customers.
The FTSE 100 bank said that according to the Court of Appeal, lenders were also liable for any non-disclosures by dealers. That decision raised the bar for disclosure and consent, surpassing the industry’s previous practices, which were based on regulatory guidance from the Financial Conduct Authority (FCA) and earlier legal precedents.
Lloyds noted that the rulings extended beyond the scope of the FCA’s ongoing review into motor commissions. It said it was currently evaluating the potential impact and broader implications of the decisions while awaiting the outcomes of appeal applications to the UK Supreme Court by the lenders involved.
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