FTSE 100 snaps seven-day winning streak after US and Iran trade airstrikes
Market Reaction and Key Developments
May 28 (Reuters) - Britain's FTSE 100 slipped on Thursday, snapping a seven-session winning streak, as renewed U.S.-Iran hostilities clouded prospects for reopening the Strait of Hormuz.
The blue-chip FTSE 100 index fell 0.75% to 10,425.96 points, while the midcap FTSE 250 dipped 0.26%, easing from a near three-month high.
Major Movers in the FTSE 100
Decliners
• BT Group was 3.5% lower, among the biggest FTSE 100 decliners, after a report said the British government will oppose any attempt by Indian billionaire Sunil Bharti Mittal to increase his stake in the telecoms group.
Gainers
• Energy and defence stocks were among the few gainers after Iran and the U.S. traded air strikes, highlighting the fragility of negotiations aimed at turning a tenuous early-April ceasefire into a lasting agreement to end the three-month-old war.
International Developments
US-Iran Ceasefire Progress
• Wall Street stocks later climbed and oil prices pared gains, however, after Axios reported the United States and Iran have reached an outline agreement to extend their ceasefire pending the approval of President Donald Trump.
Strait of Hormuz and Market Sentiment
• Hopes of an eventual reopening of the Strait of Hormuz, a vital gateway for global energy, along with easing bets on domestic interest rate hikes have buoyed the recent rally in UK stocks.
Company-Specific News
PPHE Hotel Group
Takeover Proposal
• PPHE Hotel Group soared 22% after the hospitality real estate firm said it had received a £920.9 million ($1.24 billion) takeover proposal from Israel's Fattal Hotel Group.
IQE
Profit Report
• IQE fell 6% after the chipmaker reported a drop in full-year adjusted core profit.
BP
Leadership Changes
• Ousted BP Chair Albert Manifold acknowledged he may have "pushed hard" for change, but again denied any misconduct, days after he was dismissed from the role. BP shares were largely flat.
(Reporting by Medha Singh in Bengaluru; Editing by Kirsten Donovan)
