- FTSE 100 down 0.3%, FTSE 250 down 0.4%
- Defence stocks hit record high amid geopolitical tensions
- House prices rise 0.3% annually, slowest since March 2024
Jan 8 (Reuters) - London's FTSE 100 edged lower on Thursday, pressured by weakness in oil stocks, even as defence shares surged to a record high on rising military budgets and geopolitical tensions.
The blue-chip FTSE 100 slipped 0.3% by 1040 GMT and the domestically focused mid-cap index was 0.4% lower.
Shell dropped 2.6% after the oil major narrowed its projected range for fourth-quarter liquefied natural gas production, as it warned of a loss in its chemicals business. Rival BP was down 0.6%.
Oversupply concerns, with forecasts of a large surplus in early 2026 have stirred concern for the energy sector, even as oil prices inched higher on the day.
Defence stocks, on the other hand, rose to a record high, joining a rally in shares of European and U.S. peers, after President Donald Trump called for higher U.S. defence spending.
BAE systems gained 6.1%, while Chemring and Avon Technologies were up about 1% each. U.S. strikes on Venezuela have charged up geopolitical concerns, lifting defence shares earlier this week.
Meanwhile, British house prices rose by a slower-than-expected 0.3% in the 12 months to December, the weakest annual increase since March 2024, as economic and tax uncertainty overshadowed the market at the end of the year, mortgage lender Halifax said.
Among individual stocks, Associated British foods slumped 11.3% after the Primark-owner warned annual profit would fall after a sharp slowdown at its Primark fashion chain and weaker U.S. demand hit its food businesses.
Greggs fell 7.7% after the fast food chain w subdued consumer confidence meant it would likely see flat profit this year, despite a pick-up in sales in the Christmas quarter.
Tesco was down 4.9% after the food retailer forecasted full-year profit at the upper end of its guidance as it reported a 3.2% rise in underlying UK sales for the key Christmas trading period.
Reporting by Tharuniyaa Lakshmi in Bengaluru; Editing by Ronojoy Mazumdar
Source: Reuters