Economic news

FTSE 100 Flat as Energy Gains Offset Broader Weakness

  • FTSE 100 up 0.08%, FTSE 250 down 0.6%
  • Standard Life falls despite better-than-expected annual profit rise
  • CAB Payments ​surges after StoneX Group's acquisition proposal

March 16 (Reuters) - London's FTSE 100 was little changed on Monday, as gains ‌in energy shares offset weakness in other sectors amid Middle East tensions, while investors awaited a rate decision from the Bank of England later this week.

As of 1011 GMT, the blue-chip FTSE 100 was 0.08% up after logging a second consecutIve week ​of losses.

Now in its third week, the U.S.-Israeli war on Iran continues to create turmoil across ​the Middle East and rattle global energy markets.

On Sunday, U.S. President Donald Trump insisted that ⁠nations heavily reliant on Gulf oil have a responsibility to help protect the Strait of Hormuz through which ​20% of the world's energy transits.

Energy sector rose 1.2%, with oil major BP and Shell up more than 1%.

On ​the flip side, the travel and leisure sector fell nearly 2%.

Metal miners were also among the top losers as gold prices were steady, and copper prices fell.

Britain's mid-cap index was on track for deeper losses on Monday, down 0.6%, weighed down by ​weakness in industrials and financial stocks.

Investors' focus this week will be on interest rate decisions in the UK, ​the U.S., and Europe, with central banks holding their first full meetings since the start of the war and widely expected ‌to ⁠pause further rate cuts for now.

Economists polled by Reuters mostly expect a 7-2 vote by the BoE's MPC to keep bank rate at 3.75%. Before the start of the war on February 28, a cut to 3.5% was seen as a near certainty.

Data on Monday showed that the asking price for British homes held steady in the four ​weeks to March 7.

Among other ​movers, insurer Standard Life ⁠fell 2.4% despite reporting a better-than-expected rise in annual profit.

CAB Payments jumped 13.4% after the financial services firm StoneX Group proposed an all‑cash acquisition of the cross‑border payments provider at ​241.4 million pounds ($319.7 million).

($1 = 0.7554 pounds)

Reporting by Ragini Mathur in Bengaluru; Editing by ​Shinjini Ganguli

Source: Reuters


To leave a comment you must or Join us


More news


Back to economic news list

By visiting our website and services, you agree to the conditions of use of cookies. Learn more
I agree