Bank and oil stocks drive FTSE 100 to two-week low

FTSE Futures Updates

The UK’s FTSE 100 experienced a decline, reaching a level not seen in over two weeks on Thursday. This downturn was influenced by a report indicating that lenders with exposure to Asia faced challenges due to China’s decision to tighten regulations on offshore accounts. Additionally, energy stocks softened in response to a decrease in crude oil prices.

The blue-chip FTSE 100 index dropped 0.5% to 10,281.65 points by 1144, hitting its lowest level since mid-May. The mid-cap FTSE 250 inched 0.1% lower.

  • China-exposed lenders HSBC and Standard Chartered dropped 4.8% and 6.4%, respectively, following a media report indicating that residents of mainland China were encountering increased difficulties in opening offshore accounts at major Hong Kong banks.
  • Asia-focused insurer Prudential opened a new tab and dropped 6.7%, heading for its largest one-day decline since February.
  • Industrial metal miners lagged, with shares of Antofagasta and Rio Tinto down about 3% each, tracking an initial drop in base metal prices.
  • S4 Capital opens new tab slid 8.7% after the ad group’s Chairman Martin Sorrell stated that progress on revenue growth and margin improvement was insufficient as the industry confronts a marketing downturn due to global macroeconomic uncertainty.
  • CMC Markets opened a new tab and experienced a notable increase of 15.8% following the trading platform’s forecast of annual profit exceeding market expectations.
  • In the Middle East, Israel and Lebanon have reached an agreement to implement a new ceasefire following U.S.-mediated discussions, as stated by the Trump administration. This development raises expectations for advancements in the broader U.S.-Israeli conflict with Iran and has resulted in a decline of over 3% in crude oil prices.
  • British energy heavyweights Shell and BP fell over 1% each.
  • On the data front, activity in Britain’s construction sector decelerated at the most pronounced rate in six years last month, as economic uncertainty and inflationary pressures stemming from the Iran conflict resulted in a significant decline in new work.