FTSE 100 Stays Flat as Oil Surge Balances US-Iran Tensions and Financial Losses
Market Overview and Key Drivers
July 13 (Reuters) - UK's FTSE 100 was little changed on Monday as a rally in oil prices boosted energy stocks, helping offset losses in financial shares, while investors assessed renewed military exchanges between the U.S. and Iran.
The blue-chip FTSE 100 index rose 0.03% to 10499.88 points by 0927 GMT, while the midcap FTSE 250 slipped 0.1%.
Geopolitical Tensions and Market Impact
• Escalating tensions between Washington and Tehran raised concerns over the durability of an agreement reached last month to maintain traffic through the Strait of Hormuz and facilitate further talks.
Iran's Response to US Strikes
• Iran's Revolutionary Guards said on Monday they had targeted U.S. military facilities in Bahrain and Kuwait, destroyed radar systems in Oman, and hit fuel tanks and ammunition depots at Prince Hassan Air Base in Jordan in response to U.S. strikes.
Sector Performance
Energy Stocks Benefit from Oil Price Rally
• Oil prices rose over 3%, sending energy stocks up 1.1%. [O/R]
Financial Sector Losses
• On the flip side, investment banks and brokerages was the worst performing sector, after Plus500 slumped 14.3% to bottom the midcap index after the fintech broker kept its annual forecast unchanged.
Precious Metals and Mining Stocks Decline
• Precious metal miners also fell 0.6% after gold prices slipped over 1% amid inflationary concerns and bolstered expectations that the U.S. Federal Reserve will keep interest rates higher for longer. [GOL/]
Individual Mining Stocks
• Endeavour mining, Fresnillo and Hoschschild mining fell around 0.6% each.
Notable Movers
Vodafone Surges on Stake Acquisition News
• Among individual stocks, Vodafone topped the FTSE 100 with a 4.6% gain, extending Friday's rally, after French billionaire Xavier Niel said he planned to buy a near $6 billion stake in the telecoms group from UAE's e&.
(Reporting by Tharuniyaa Lakshmi in Bengaluru; Editing by Sahal Muhammed)
