Economic news

London Stocks Edge Lower as High Oil Prices Fuel Inflation

Sept 10 (Reuters) - London shares hovered around one-month ​lows on Thursday as oil prices continued to fuel inflation worries ‌in a week packed with economic data, while energy stocks helped keep a lid on losses.

The blue-chip FTSE 100 index fell 0.4% to 10,627.80 points by 0946 GMT, while the ​midcap FTSE 250 slipped 0.38%.

  • Brent crude futures were trading over $100 a ​barrel as the U.S. and Iran's continued attacks on shipping prompted ⁠markets to brace for supply disruptions.

  • Energy stocks led gains, rising 0.8%, with Shell ​and BP extending their rally, up 0.7% and 1%.

  • U.S. President Donald Trump said ​he expected the conflict to end after the November U.S. midterm elections, but the remark did little to calm investors.

  • Banks were the biggest drags on the index. HSBC declined over 1.8% ​after it announced its CFO Pam Kaur would step down in 2027.

  • Both precious and ​industrial metal miners declined, with Rio Tinto and Anglo American down 0.9% and 1.5%, respectively, ‌even ⁠as metal prices gained.

  • British government bond yields rose, with the benchmark 10-year bond hitting a 19-year high and shorter-dated ones at their highest since late 2023.

  • Traders await U.S. inflation reports and UK economic growth data this week, which could impact interest ​rate expectations in ​these economies.

  • Markets are ⁠pricing in a 60% chance the U.S. Federal Reserve will hike rates next week but widely expect the Bank of ​England to hold, as per LSEG-compiled data.

  • Associated British Foods ​bottomed the ⁠FTSE 100 with an 11.8% slide after it forecast a decline in fourth-quarter like-for-like sales at budget fashion chain Primark.

  • Animal genetics company Genus fell 4.9% after its annual adjusted ⁠revenue ​fell short of analysts' consensus estimates.

  • British e-commerce group ​THG lost 7.1% after warning of a slowdown in its quarterly revenue growth due to new EU ​import duties.

Reporting by Anand Gopal and Purvi Agarwal in Bengaluru; Editing by Vijay Kishore

Source: Reuters


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