Economic news

FTSE 100 Flat on Mideast Uncertainty as Inflation Rises

April 22 (Reuters) - London's benchmark ​index FTSE 100 was subdued on Wednesday as investors monitored the ‌fragile truce in the Middle East and assessed Britain's March inflation data.

The blue-chip FTSE 100 index edged down 0.03% to 10,495.22 points by 1048 GMT, while the midcap FTSE 250 edged up 0.2%.

Lingering ​doubts over peace in the Middle East weighed on sentiment, ​despite U.S. President Donald Trump extending the ceasefire with Iran, with ⁠uncertainty persisting over whether Iran or Israel would uphold the deal.

  • Oil ​prices jumped on Wednesday, with Brent crude rising above $100 a barrel, following ​reports that at least three container ships were hit by gunfire in the Strait of Hormuz.

  • The rise in crude prices weighed on airline stocks with British Airways owner ​IAG down 2.1%, EasyJet dipping 1.6% and Wizz Air losing 1.3%, ​respectively.

  • Oil majors BP and Shell rose 1.9% and 0.8%, respectively.

  • Miners Fresnillo, Rio Tinto, Glencore ‌and ⁠Anglo American gained more than 1%, tracking a rise in prices of precious and base metals.

  • Official data showed British consumer price inflation rose to 3.3% in March from 3% in February, underscoring the Iran war's impact on price ​levels.

  • "The CPI figures ​confirm that the ⁠supply chain and energy pressures are beginning to bite and the Bank of England's room for manoeuvre is ​narrowing fast," said Nick Saunders, CEO of Webull UK ​in ⁠a note.

  • Reckitt, which makes Dettol soap and Durex condoms, missed quarterly like-for-like revenue estimates, pushing shares down 6.2%.

  • Business supplies distributor Bunzl gained 3% after posting a ⁠rise ​in first-quarter revenue.

  • Stocks of wealth-managing firms gained ​after Quilter reported record first-quarter inflows: Quilter rose 4.9%, Liontrust Asset Management was up 0.7%, ​and Aberdeen advanced 0.4%.

Reporting by Utkarsh Tushar Hathi; Editing by Diti Pujara

Source: Reuters


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