London stocks moved higher on Monday, driven in part by gains among resource-linked names, even as tensions in the Middle East remained an unresolved factor in market sentiment. Political developments out of Washington added a layer of uncertainty with the U.S. president signaling that negotiations with Iran have advanced but stopping short of ruling out military action.
In a post on Truth Social, U.S. President Donald Trump said the United States was engaged in "serious discussions with A NEW, AND MORE REASONABLE, REGIME to end out Military Operations in Iran," and added that "great progress has been made." He also warned that Washington could carry out strikes on multiple targets if an agreement is not reached soon.
As of 12:23 GMT, the benchmark FTSE 100 was up by more than 1%. Currency markets saw the British pound slip 0.2% versus the U.S. dollar to 1.3232. Elsewhere in Europe, Germany's DAX rose 0.2% and France's CAC 40 was 0.4% higher.
UK economic and market developments
Data released by the Bank of England on Monday showed household mortgage activity in February increased versus the prior month. Net borrowing of mortgage debt by individuals rose to A34.8 billion in February from A34.2 billion in January, topping the six-month average of A34.5 billion.
Mortgage approvals for house purchases climbed to 62,600 in February from 60,200 in January, though that level remained slightly under the six-month average of roughly 63,500. Approvals for remortgaging also moved higher, rising to 41,200 in February from 38,500 in January.
On a year-over-year basis, the annual growth rate for net mortgage lending increased marginally to 3.4% in February from 3.3% in January. Gross secured lending edged up to A323.9 billion from A323.6 billion, while repayments eased to A318.4 billion from A318.8 billion.
Corporate headlines
Among individual stocks, shares of CVS Group Plc (LON:CVSG) fell by more than 2% after the company announced that Chief Executive Officer Richard Fairman will step down for personal reasons. Fairman, who joined the group in 2018 as chief financial officer and was appointed CEO in 2019, will remain in his role until a successor is named. The board said it will begin a search for a new chief executive.
Debenhams Group, the company previously known as Boohoo Group PLC (LON:DEBS), reported adjusted EBITDA of A353 million for the fiscal year ended February 28, 2026. That result exceeded the companys earlier guidance of A350 million and represented a 36% increase compared with the prior year. Debenhams also raised its fiscal 2027 outlook, forecasting double-digit percentage growth in adjusted EBITDA.
In regulatory action, the British government imposed a A3390,000 fine on Apple Incs (NASDAQ:AAPL) unit Apple Distribution International Ltd for breaching Russia sanctions. In a notice published on Monday, officials said the company made funds available to a designated individual without a licence through two payments in 2022.
Market implications
The combination of geopolitical developments and domestic lending data framed trading in London on Monday. Resource-linked stocks helped underpin the FTSE 100 rally, while mortgage figures suggested modest increases in household mortgage activity. At the same time, company-specific news produced mixed reactions across listed names, with executive leadership changes and regulatory penalties affecting share prices.
Investors will likely continue to monitor both the diplomatic discussions referenced by the U.S. president and upcoming corporate developments as they assess risk across sectors including resource firms, financials tied to mortgage lending, and consumer-facing companies affected by regulatory actions.