FTSE 100 Down as Oil Majors Drop and UK Local Elections Begin
Market Movements and Key Drivers
May 7 (Reuters) - The UK's FTSE 100 edged lower on Thursday, pressured by a firmer pound and a slide in oil majors Shell and BP, while Britons headed to the polls in local and regional elections.
The blue-chip FTSE 100 index fell 0.6% to 10,380 points by 1112 GMT, while the midcap FTSE 250 gained 0.5%.
Political Developments and Election Impact
• The elections could deal a huge blow to Prime Minister Keir Starmer's Labour Party, renewing scepticism about his ability to govern. They could also signal the beginning of the end of Britain's traditional two-party system.
Economic Indicators and Market Sentiment
• A recent survey showed that in April, British builders saw one of the biggest month-on-month jumps in cost inflation.
• The pound rose against the dollar on hopes that an end to the U.S.-Iran conflict was near, pressuring multinational firms that earn most of their revenue overseas.
• With earnings season in full swing, markets are assessing consumer demand and any economic impact from the Middle East conflict.
Company Performances and Stock Movements
• Shares of oil major Shell dropped 2% despite reporting its highest quarterly profit in two years and raising its dividend. Rival BP fell 1.4%, as oil's slide below $100 weighed on its stock. [O/R]
• Shares of BAE Systems were down 3%, among the biggest drags on the FTSE 100, after the defence firm maintained its full-year outlook.
• InterContinental Hotels Group rose 2.7% after topping quarterly room revenue estimates as its U.S. business rebounded.
• Autotrader Group gained 4% after a source told Reuters that activist investor Palliser Capital built up to a 2% stake in the company.
• Helios Towers jumped 16%, lifting the mid-cap index, after the mobile tower operator raised its annual profit forecast.
Reporting Credits
(Reporting by Medha Singh in Bengaluru; Editing by Diti Pujara)
