UK’s blue-chip shares experienced a decline on Thursday, influenced by disappointing data and concerns that the conflict in the Middle East may remain unresolved. The blue-chip FTSE 100 index fell 0.43%, while the midcap FTSE 250 was 0.18% higher.

• Iran’s Supreme Leader has issued a directive that the country’s near-weapons-grade uranium should not be sent abroad, as reported, hardening Tehran’s stance on one of the main U.S. demands at peace talks.
• The prolonged conflict has already led to an increase in oil prices and heightened worries regarding inflation.
• Separately, a survey on Thursday indicated that British companies are experiencing the most extensive decline in activity in more than a year, attributed to the economic repercussions of the war and domestic political uncertainty.
• “These figures… lend some tentative support to other evidence that suggests the conditions for a long period of high inflation are not in place,” said Paul Dales.
• Earlier this week, data indicated that inflation in April was softer than anticipated, while the unemployment rate experienced a slight increase.
• Meanwhile, factory orders in May experienced a contraction at the most rapid pace since September 2020, as reported by the Confederation of British Industry.
• Shares of automotive marketplace Autotrader slipped 9.1% after the company reported slower sales, making it the biggest laggard on the FTSE 100.
• Medical equipment and services shares fell 2.7%, influenced by a 7.9% decline in medical equipment manufacturer Convatec, which indicated margin pressure.