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London's FTSE 100 Dips as Oil Majors Weigh; Voters Head to Polls

May 7 (Reuters) - The ​UK's FTSE 100 edged lower on Thursday, pressured by a ‌firmer pound and a slide in oil majors Shell and BP, while Britons headed to the polls in local and regional elections.

The blue-chip FTSE 100 index ​fell 0.6% to 10,380 points by 1112 GMT, while the ​midcap FTSE 250 gained 0.5%.

  • The elections could deal a huge ⁠blow to Prime Minister Keir Starmer's Labour Party, renewing scepticism about his ​ability to govern. They could also signal the beginning of the end of ​Britain's traditional two-party system.

  • A recent survey showed that in April, British builders saw one of the biggest month-on-month jumps in cost inflation.

  • The pound rose against the dollar on hopes that an ​end to the U.S.-Iran conflict was near, pressuring multinational firms ​that earn most of their revenue overseas.

  • With earnings season in full swing, markets ‌are ⁠assessing consumer demand and any economic impact from the Middle East conflict.

  • Shares of oil major Shell dropped 2% despite reporting its highest quarterly profit in two years and raising its dividend. Rival BP fell ​1.4%, as oil's slide ​below $100 weighed on ⁠its stock.

  • Shares of BAE Systems were down 3%, among the biggest drags on the FTSE 100, after the ​defence firm maintained its full-year outlook.

  • InterContinental Hotels Group rose ​2.7% after ⁠topping quarterly room revenue estimates as its U.S. business rebounded.

  • Autotrader Group gained 4% after a source told Reuters that activist investor Palliser Capital ⁠built up ​to a 2% stake in the ​company.

  • Helios Towers jumped 16%, lifting the mid-cap index, after the mobile tower operator raised its annual ​profit forecast.

Reporting by Medha Singh in Bengaluru; Editing by Diti Pujara

Source: Reuters


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