The blue-chip FTSE 100 index fell 0.5% to 10,543.91 points by 1052 GMT, while the midcap FTSE 250 slipped 0.1%
International News via Reuters:
London’s FTSE 100 edged lower on Monday as U.S.-Iran tensions fuelled concerns over shipping through the Strait of Hormuz, while investors looked ahead to policy signals from new British Prime Minister Andy Burnham.
The blue-chip FTSE 100 index fell 0.5% to 10,543.91 points by 1052 GMT, while the midcap FTSE 250 slipped 0.1%.
• U.S. strikes on Iran entered a ninth straight day, and risks to shipping through the Strait of Hormuz mounted after reports of tankers being immobilised. Brent crude prices climbed above $90 a barrel for the first time in a month. [O/R]
• Energy-price-sensitive sectors such as automobiles and travel and leisure fell 1% and 0.7%, respectively, as rising oil prices heightened concerns over costs and consumer demand.
• Investors also monitored the political transition in Britain, where Andy Burnham was set to become the country’s seventh prime minister in a decade, succeeding Keir Starmer with promises to tackle living costs and struggling public services.
• “Political change is a lot for investors to digest, but they’ve got more on their plate. The Iran war has escalated and driven oil prices back above $90 a barrel. That means inflation fears are back on the table, which has major implications for interest-rate expectations,” said Russ Mould, investment director at AJ Bell.
• British government bond yields edged higher, as investors assessed the implications of a new Labour government for fiscal policy and public spending priorities.
• Meanwhile, technology stocks rose 0.5% to lead sectoral gains ahead of earnings from U.S. Big Tech companies, which could provide a fresh test of the AI-driven rally.
• Ryanair tumbled 7.2% after the budget airline reported a one-third drop in first-quarter profit and warned summer ticket prices could come under pressure amid uncertainty over the Iran conflict and the broader economy.
• Shares of Big Yellow dropped 2% after the self-storage firm reported a decline in first-quarter occupancy rates.
Reporting by Tharuniyaa Lakshmi in Bengaluru; Editing by Maju Samuel
