UK stocks started the session under pressure while the pound tumbled to roughly $1.33, with traders focused on mounting geopolitical friction linked to the ongoing conflict involving Iran, the United States and Israel. Market participants signalled limited expectation that the current flare-up will subside soon, leaving risk appetite strained as the week begins.
In recent public comments, U.S. President Donald Trump indicated a willingness to engage with Iran’s new leadership. By contrast, senior Iranian official Ali Larijani said Tehran is not ready to enter talks with Washington. These conflicting public stances have contributed to an unsettled tone in markets ahead of a busy week in which investors will largely monitor whether any de-escalation signals emerge.
Reflecting that mood, a Jefferies economist said: "From a market perspective, we see further downside in the coming days. We had lowered our risk profile early last week as we thought that the market was being too complacent around geopolitical risks. We are still happy to remain in the low risk mode and keeping our powder dry. At some point we would be ready to buy the dip, but that some point seems far for now."
As of 08:14 GMT, the FTSE 100 was down 0.7%. The British pound fell about 1% against the dollar to 1.3352. In continental Europe, Germany’s DAX retreated 2.3% and France’s CAC 40 lost 1.7%.
Company news and corporate earnings
Smith+Nephew PLC (LSE:SN) posted fourth-quarter revenues that outstripped consensus by 1.6% and maintained its full-year 2026 guidance despite a challenging backdrop. The medical equipment maker reported Q4 underlying revenue growth of 6.2%, described in company disclosures as beating consensus estimates by 1.5 basis points. Its second-half EBIT margin was cited as 7 basis points above consensus, and earnings per share topped expectations by 2.6%.
Bunzl (LSE:BNZL) released full-year results on Monday that broadly matched market expectations. The distribution group saw a slight uptick in organic growth in the fourth quarter and a slower rate of margin deterioration in the second half compared with the first half of the year. Revenue growth excluding foreign exchange effects was 3%, putting it at the upper end of the company's 2% to 3% guidance range. Organic growth was 0.4%, versus guidance calling for flat growth.
For the year, adjusted earnings before interest and tax for Bunzl declined 7% to 910 million, which the company said was approximately 1% above the consensus estimate of 896 million. The operating margin narrowed by 60 basis points to 7.7%, against guidance and consensus of 7.6%. Management highlighted an improvement in the pace of margin decline in the second half - a 30 basis point fall compared with a 100 basis point decline in the first half that was driven by North America.
Oxford Nanopore Technologies PLC (LSE:ONT) gave 2026 revenue guidance that fell short of analyst expectations while also projecting slower operating expense growth than previously signalled. The company expects 2026 revenue growth of 21%-25% at constant exchange rates, compared with consensus estimates of 27.5% on a reported basis. At current exchange rates, foreign exchange is expected to act as a headwind of roughly 1.5 percentage points. On operating expenses excluding depreciation and amortization, Oxford Nanopore guided to growth of 0%-5%, which is below its customary 3%-8% annual guidance range.
Separately, BYG announced that long-serving CEO Jim Gibson will retire on July 20 following the companys Annual General Meeting. Chief Operating Officer John Hunter is slated to take over as chief executive. Gibson, a co-founder of BYG in September 1998 who has been CEO since 2003, is credited by company commentary with steering the firm to a market-leading position. The business reportedly began in a 600 square foot office in Bagshot with Gibson and a co-founder in their 30s, bringing property and real estate financial skills to the venture.
Housing and broader economic details
Data from Nationwide showed UK house prices rose modestly in February, with the average home price reaching 273,176. Prices increased by 0.3%, or 817, on a seasonally adjusted basis in February, the same monthly rise recorded in January. On a year-on-year basis, house prices were up 1%, or 2,660, compared with February 2025. That annual increase is marginally higher than the 0.99% year-on-year growth recorded in the prior month. The release noted that housebuilders have reported prices have been largely static so far this year.
Investor takeaway
Investors entered the week with risk assets under pressure as geopolitical uncertainty continued to dominate headlines, prompting currency weakness and declines across major European indices. Corporate updates provided a mix of outcomes - stronger-than-expected results and margin resilience in some areas, in-line performance for a major distributor, and cautious revenue guidance from a quoted life sciences business, including an acknowledged foreign exchange headwind.
For those monitoring stock-specific moves, Smith+Nephews results contained upside versus consensus, Bunzls full-year figures were broadly as expected with some operational improvement in the second half, and Oxford Nanopores guide fell short of sell-side expectations on revenue growth while indicating lower operating expense growth than previously forecast. BYGs leadership change was formally announced with a defined retirement date for the current CEO.
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