Must read: stocks make flying start to Q2, Berkeley Group, Topps Tiles

Global markets

European markets have opened higher with the DAX up 2.5% and the Stoxx 600 gaining 2.3%, rebounding after the worst month for European equities since 2022. The FTSE 100 is up 1.7% with just a handful of stocks in the red as risk-on sentiment lifts global markets.

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It comes after a strong session overnight in Asia on hopes that the Iran war could end within weeks, with the Nikkei surging over 5% and Kospi soaring almost over 8%.

Berkeley Group 

Berkeley Group Holdings (The) (LSE:BKG) has announced that it is no longer seeking new land acquisitions during the current market environment. Instead, it will focus on its existing 50,000 homes and further pipeline of over 10,000 homes in London and the South-East. Berkeley also said that there is reduced potential for further rate cuts, lowering its confidence in a near-term market recovery. Meanwhile, it reiterated guidance – the housebuilder expects full-year 2026 pre-tax profit of £450 million and net cash of £300 million, suggesting it is on track to reach these numbers.

Housebuilders have been hit hard since the start of the Iran war, with Berkeley Group shedding almost 19% in March while Barratt Redrow (LSE:BTRW) and Persimmon (LSE:PSN) were the worst performing stocks on the FTSE 100 last month down 22-23% each. The energy shock has created a perfect storm for the sector setting the stage for pressures from build cost inflation as well as the higher-for-longer interest rate outlook, hurting mortgage affordability and the propensity to borrow. 

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Traders are reacting badly to Berkeley’s update, with shares plunging further, hitting the bottom of the FTSE 100, shedding more than 17%, which is very punitive in the context of a stronger FTSE 100 and more upbeat global market backdrop today. Adding to downside pressure, JP Morgan cut its target price on the stock. 

However, given the sharp declines from recent highs for markets, some might argue that certain stocks in the sector are now oversold, presenting some attractive buy the dip opportunities, particularly if there appear to be further signs of de-escalation in the Iran war.

Topps Tiles 

Topps Tiles (LSE:TPT) announced plans to close 23 underperforming stores which it said will lower revenue but improve profitability in the medium term. The company highlighted subdued consumer sentiment, geopolitical uncertainty and cost inflation as headwinds. Meanwhile, the company announced H1 revenue of £142.7 million down 0.1% year-on-year. 

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Traders haven’t taken the news well, with shares in Topps Tiles plunging around 5% today, landing the stock down around 25% year-to-date. 2025 was a decent year for Topps, with shares gaining around 13% after a rocky post pandemic period, thanks to strong demand for DIY as a cheap home renovation solution for many price sensitive customers.

The company also made some strong acquisitions including Fired Earth, expanded in digital channels and grew its trade customers. However this year is proving to be more challenging with the weak consumer backdrop and the risk of cost inflation from the global geopolitical instability.