FTSE 100 Dips Amid Middle East Tensions, Miners Weigh Down

FTSE Futures Updates

On Wednesday, London’s FTSE 100 experienced a decline as investor sentiment was tempered by rising tensions in the Middle East. The losses in precious metal mining stocks overshadowed the gains observed in energy shares, despite an increase in oil prices.

The blue-chip FTSE 100 index fell 0.1% to 10,515.73 points by 1013, while the midcap FTSE 250 slipped 0.09%.

  • Precious metals miners declined 2.3%, making them the worst-performing sector, with Fresnillo and Endeavour Mining falling 2.8% and 2%, respectively, among the top losers on the benchmark index.
  • Conversely, energy stocks experienced a 0.3% increase as oil prices surged approximately 2% following U.S. President Donald Trump’s reinstatement of a naval blockade on all Iranian ports. This development coincided with threats from Iran’s Islamic Revolutionary Guard Corps to shut down “all other export corridors that benefit ​the U.S. and its allies”.
  • The personal goods index rose 2.4% to lead sectoral gains, buoyed by a 4.8% jump in Watches of Switzerland Group after brokerages Barclays and UBS lifted target price on the stock.
  • The OECD indicated that Britain needs to uphold fiscal discipline, confront escalating pension costs, and manage elevated energy prices to enhance economic growth, highlighting the obstacles confronting Andy Burnham, who is poised to assume the role of prime minister next week.
  • On Tuesday, Britain’s FTSE 100 closed higher, driven by gains in bank stocks following robust earnings from major U.S. lenders that marked the beginning of the reporting season. Additionally, a softer-than-expected U.S. inflation reading bolstered expectations for a postponement of interest rate cuts.
  • Among individual stocks, Rio Tinto rose 1.1% after the mining major reported better-than-expected second-quarter iron ore sales, supported by strong operational performance.
  • Shares of B&M fell 6.9% after the discount retailer reported a 2.3% decline in first-quarter like-for-like sales in its core UK market, as a slow start to the gardening season weighed on trading, though growth in France helped lift group revenue.
  • Barratt Redrow opens new tab rose 3.3% after the housebuilder said it would return £400 million ($536 million) to shareholders through share buybacks instead of dividends.