Economic news

FTSE 100 Flat; Energy Gains Offset Losses amid Iran Tension

  • FTSE 100 flat, FTSE 250 up 0.1%
  • Energy shares climb as oil prices rise over 4%
  • Plus500 slips as firm keeps annual forecast unchanged

July 13 (Reuters) - UK's FTSE 100 ended flat on Monday as a ‌rally in oil prices boosted energy stocks, helping offset losses in financials and mining stocks as investors assessed renewed military exchanges between the U.S. and Iran.

The blue-chip FTSE ​100 index ended flat at 10,498.3 points, while the midcap ​FTSE 250 edged 0.1% higher.

  • U.S. President Donald Trump said the United ⁠States was reinstating its blockade of Iranian shipping in the Gulf ​and would ensure the Strait of Hormuz stays open after the two sides ​exchanged more missile and drone attacks.

  • Oil prices rose over 4%, sending energy stocks up 3%.

  • Homebuilders rose 2% following a media report that Andy Burnham, who is likely to be the ​next British Prime Minister, is set to review plans to bring back the "Help to ​Buy" scheme which was designed to help first-time buyers afford properties.

  • Watches of Switzerland Group ‌jumped ⁠4.2% after Reuters reported the luxury watch retailer has held talks in recent months over potential take-private offers.

  • PageGroup surged almost 20% after the recruiter beat second-quarter gross profit forecasts.

  • Vodafone topped the FTSE 100 with a 5.5% gain, extending Friday's ​rally, after French ​billionaire Xavier Niel ⁠said he planned to buy a near $6 billion stake in the telecoms group from UAE's e&.

  • On the downside, Plus500 slumped ​around 15% to bottom the midcap index after the fintech ​broker kept ⁠its annual forecast unchanged.

  • Precious metal miners also fell 2.4% after gold prices slipped over 2% amid inflationary concerns and bolstered expectations that the U.S. Federal ⁠Reserve ​will keep interest rates higher for longer.

  • Heavyweight banks ​lost 0.8%, while travel and leisure shed 0.8% amid elevated crude oil prices.

Reporting by Tharuniyaa ​Lakshmi and Shashwat Chauhan in Bengaluru; Editing by Sahal Muhammed and Leroy Leo

Source: Reuters


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