FTSE 100 Flat as Investors React to US-Iran Tensions and Energy Stock Gains
Market Overview and Key Drivers
June 19 (Reuters) - UK shares were largely flat on Friday as U.S.-Iran peace talks in Switzerland were called off, keeping risk appetite in check, though gains in energy and healthcare stocks lent support.
The blue-chip FTSE 100 index was down 5.40 points, or 0.05%, at 10,394.30 by 0948 GMT, while the domestically focused FTSE 250 midcap index fell 0.5% to 23,210.43, and remained on track for a weekly drop.
Sector Performance
Miners and Global Market Impact
• Miners weighed on the index, with Anglo American down 2.2%, Glencore off 1.5% and Rio Tinto 1.1% lower.
• Global shares fell, while oil prices got a boost after Washington and Tehran called off peace talks, which traders had hoped would ease supply risks around the Strait of Hormuz.
Political Developments in the UK
• Meanwhile, Labour mayor Andy Burnham cleared a path on Friday to ousting British Prime Minister Keir Starmer, potentially ushering in a new bout of political instability.
Market Reactions to Political Uncertainty
• "The strength of his (Burnham's) mandate may determine how far he might go with anything one might call a market-unfriendly approach – i.e., higher borrowing, redistributive wealth taxes, etc," said Saxo UK Investor Strategist Neil Wilson.
• British government bond yields rose to a one-week high increasing slightly more than those for German debt, after higher-than-expected borrowing numbers and Burnham's election victory.
Energy and Healthcare Stocks
• Energy stocks were the main source of support. BP rose 1.7% and Shell gained 1.0%, as Brent crude held near $79.50 a barrel.
• AstraZeneca added 1.3%, leading healthcare names higher, while GSK gained 0.9%.
Company-Specific Moves
Insurance and Homebuilding Sectors
• British insurer Admiral Group slipped 5% after RBC downgraded the stock to "sector perform" ahead of results.
• Barratt Redrow named former British Airways finance chief Rebecca Napier as its new chief financial officer. The homebuilder's shares dropped 0.5%.
Gaming Sector Activity
• Entain shares ticked higher after Reuters reported the Ladbrokes-owner has begun exploring options for its joint venture in Central and Eastern Europe, including a possible sale.
(Reporting by Medha Singh in Bengaluru; Editing by Eileen Soreng)
