UK Shares Steady Amid Middle East Tensions and Major M&A Activity

UK shares kicked off the week on a subdued note, with investors closely monitoring potential escalations in the Middle East conflict. Among the day's standout performers was instruments maker Spectris, which saw a notable surge in its share price following a takeover agreement with private equity firm Advent.

The FTSE 100 index and the midcap index both remained flat as of 1010 GMT. The market's attention was particularly drawn to potential geopolitical developments, especially Iran's anticipated response to U.S. airstrikes targeting nuclear facilities, a situation that could significantly impact the global oil supply, particularly through the Strait of Hormuz.

The oil and gas sector led the gains, in tandem with crude oil prices nearing five-month highs. Energy companies like BP and Shell saw their stocks rise by about 1% each. In contrast, airline stocks such as Easyjet and British Airways faced declines, pressured by higher crude prices. Meanwhile, significant merger activity, including Spectris' takeover worth 4.4 billion pounds, highlighted UK markets, with real estate dynamics also influencing trading trends.

(With inputs from agencies.)