London FTSE Indexes Slide Over 1% on Trump’s Iran Deal Comments and Oil Price Surge
Market Reaction and Sector Performance
July 8 (Reuters) - London's FTSE indexes fell more than 1% on Wednesday after U.S. President Donald Trump said an initial agreement to end the war on Iran was over, reigniting concerns about escalating tensions in the Middle East and higher oil prices.
The blue-chip FTSE 100 index fell 1.3% to 10,519.17 points by 1111 GMT, while the midcap FTSE 250 slipped 1.7%. The benchmark fell to its lowest level in nearly one week, while the midcap index touched its lowest level in more than a week.
Sector Movements
• Most sectors were in the red; defence stocks were the biggest drag, while the energy index was the only sector in the green.
Energy Sector Gains
• BP and Shell rose 3% and 1.8%, respectively, and were among the top performers on the FTSE 100 as the energy sector received a boost from oil prices, which jumped more than 4% on renewed fears of disruptions to Middle East oil supplies. [O/R]
Precious Metals and Mining
• Precious metals miners fell 3.6% as gold prices dropped more than 1% amid renewed concerns about inflation and the prospect of higher interest rates. [GOL/]
Other Market Highlights
UK Jobs Market
• Meanwhile, Britain's jobs market downturn eased slightly last month, according to a survey of recruitment companies on Wednesday that showed an upturn in temporary hiring and starting salaries.
Individual Stock Movers
Jet2
• Among individual stocks, Jet2 climbed 9.9% after the British travel firm said tourists were more willing to commit to travel plans following the easing of Middle East tensions.
Vistry
• Vistry fell 6.4% after Britain's largest affordable housing builder warned of a first-half pre-tax loss of £30 million ($40 million).
IG Group
• IG Group rose 2.5% after the online trading platform proposed setting up a new holding company in Jersey as part of a strategic overhaul to unlock shareholder value.
(Reporting by Tharuniyaa Lakshmi in Bengaluru; Editing by Sahal Muhammed)