London’s FTSE 100 fell to its lowest level in a week, influenced by significant declines in major banks, as increasing oil prices tempered risk appetite, while investors processed a series of corporate earnings reports. The blue-chip FTSE 100 index fell 0.5% to 10,699.33 points by 1006, while the midcap FTSE 250 slipped 0.9%. The latter was poised for its most significant single-day decline since October 1.
- Oil prices surged more than 3%, reaching their highest levels since May, with Brent crude futures exceeding $112 a barrel. Energy opens new tab stocks were the biggest gainers.
- Banks were the biggest drags, trading close to their June lows. Barclays opens new tab dipped marginally after missing estimates for third-quarter profit and announcing plans to cut about 5,000 jobs.
- Precious metal miners were the biggest percentage decliners, down over 3% each as gold and copper prices slipped over 1% each.
- Elevated oil prices have been exacerbating inflation concerns, compelling major central banks to increase interest rates.
- Data released on Wednesday indicated that British inflation increased more than anticipated last month, reinforcing the argument for a rate hike from the Bank of England in November, a move that is largely reflected in current market pricing.
- Corporate earnings will continue to capture investors’ attention as they seek insights into the effects of geopolitical uncertainty and elevated borrowing costs in certain economies.
- Pest control firm Rentokil Initial opens new tab topped the FTSE 100 with an 8.2% rise after reporting higher third-quarter organic revenue growth and a $200 million buyback plan.
- Second-quarter sales growth decelerated at Britain’s second-largest supermarket group Sainsbury’s, leading to a 3.7% decline in its shares.
- Crowne Plaza owner IHG opens new tab slipped 3.1% as rising interest rates and the impact of the Iran conflict overshadowed its quarterly room revenue beat.
- London Stock Exchange Group opens new tab gained 4.3% after raising its 2026 revenue outlook and agreeing to acquire financial data firm Octus for about $3.54 billion.
