UK's FTSE 100 flat as energy gains counter mining losses amid US-Iran flare-up
Market Overview and Key Movers
July 13 (Reuters) - UK's FTSE 100 ended flat on Monday as a rally in oil prices boosted energy stocks, helping offset losses in financials and mining stocks as investors assessed renewed military exchanges between the U.S. and Iran.
The blue-chip FTSE 100 index ended flat at 10,498.3 points, while the midcap FTSE 250 edged 0.1% higher.
Geopolitical Tensions and Market Impact
• U.S. President Donald Trump said the United States was reinstating its blockade of Iranian shipping in the Gulf and would ensure the Strait of Hormuz stays open after the two sides exchanged more missile and drone attacks.
Energy Sector Performance
• Oil prices rose over 4%, sending energy stocks up 3%. [O/R]
Homebuilders and Policy Developments
• Homebuilders rose 2% following a media report that Andy Burnham, who is likely to be the next British Prime Minister, is set to review plans to bring back the "Help to Buy" scheme which was designed to help first-time buyers afford properties.
Corporate Highlights
Retail and Recruitment Movers
Watches of Switzerland Group
• Watches of Switzerland Group jumped 4.2% after Reuters reported the luxury watch retailer has held talks in recent months over potential take-private offers.
PageGroup
• PageGroup surged almost 20% after the recruiter beat second-quarter gross profit forecasts.
Vodafone
• Vodafone topped the FTSE 100 with a 5.5% 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&.
Notable Declines
Plus500
• On the downside, Plus500 slumped around 15% to bottom the midcap index after the fintech broker kept its annual forecast unchanged.
Precious Metal Miners
• Precious metal miners also fell 2.4% after gold prices slipped over 2% amid inflationary concerns and bolstered expectations that the U.S. Federal Reserve will keep interest rates higher for longer. [GOL/]
Banks, Travel and Leisure
• Heavyweight banks lost 0.8%, while travel and leisure shed 0.8% amid elevated crude oil prices.
(Reporting by Tharuniyaa Lakshmi and Shashwat Chauhan in Bengaluru; Editing by Sahal Muhammed and Leroy Leo)
