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London's FTSE Indexes Ease as Iran Conflict Rattles Markets

  • FTSE 100 down 0.3%, FTSE 250 ​down 0.7%
  • BP gains on stronger trading, refining margin outlook
  • Investors await ‌U.S. inflation data, Warsh remarks

July 14 (Reuters) - UK's FTSE indexes edged lower on Tuesday on escalating U.S.-Iran tensions, while losses in financial and travel stocks outweighed gains in energy shares from oil major BP's comment that it benefited ​from the surge in oil prices earlier this year.

The blue-chip FTSE ​100 index fell 0.3% to 10,461.14 points by 1024 GMT, ⁠while the midcap FTSE 250 slipped 0.7%.

  • The U.S. carried out strikes against Iran for a ​third straight night, while President Donald Trump announced a blockade of Iranian shipping ​and a 20% fee on cargo transiting the Strait of Hormuz, sending Brent crude prices up 3% to around $85 a barrel.

  • Travel and leisure stocks led sectoral losses, down 2.4%, with InterContinental ​Hotels Group falling 3.7% to the bottom of the FTSE 100 index.

  • Banks also weighed ​on the index as investors awaited earnings from big U.S. banks later in the day.

  • On ‌the ⁠flip side, energy stocks led sectoral gains, up 1.8%, helped by a 2.3% rise in BP after the company said strong oil trading and higher refining margins would support second-quarter earnings.

  • Industrial metals miners followed, with Atalaya Mining Copper , ​Glencore and Rio Tinto ​up 1.6% to ⁠3.5% each.

  • Investors await the U.S. inflation report and commentary from Federal Reserve Chair Kevin Warsh that could offer insights ​into the health of the world's largest economy.

  • Among individual stocks, ​Ashmore fell ⁠1.8% after the British asset manager reported quarterly net inflows ahead of expectations, with investors continuing to allocate capital to higher-yielding emerging market assets despite geopolitical uncertainty.

  • Debenhams ⁠Group rose ​3.1% after the online retailer said positive trading ​momentum continued through June and July, supported by improving sales margins and lower customer returns as its ​turnaround strategy gained traction.

Reporting by Tharuniyaa Lakshmi in Bengaluru; Editing by Leroy Leo

Source: Reuters


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