London’s FTSE 100 Stays Flat as Miners Slide, Eyes on ECB Policy Decision
Market Overview and Key Drivers
July 23 (Reuters) - Britain's FTSE 100 was little changed on Thursday as weakness in precious metal miners offset gains in energy shares after higher oil prices, while earnings and the ECB's policy decision remained in focus.
The blue-chip FTSE 100 index fell 0.04% to 10,712.83 points by 1050 GMT, while the midcap FTSE 250 slipped 0.3%.
Sector Performance
Energy Stocks Gain on Oil Price Surge
• The energy stock led gains as oil prices rose after Yemen's Houthis said they struck two Saudi oil tankers, raising fears that disruption to global oil supplies could spread beyond the Strait of Hormuz.[O/R]
Precious Metal Miners Lead Losses
• Limiting gains, the precious metal mining sector, fell 2.5% and led losses sectorally as gold prices dropped on concerns that inflationary pressures could push the U.S. Federal Reserve to raise interest rates later this year. [GOL/]
Monetary Policy in Focus
ECB Policy Decision
• Against a backdrop of mounting inflation concerns, investors awaited the European Central Bank's policy decision later in the day.
• The European Central Bank is all but certain to keep interest rates unchanged but will hold the door open to another rate hike in September.
Company Highlights
EasyJet Rises Despite Profit Slump
• Among individual stocks, Takeover target easyJet rose 5.5% after the airline's third-quarter profit slumped 70% as the Iran war led to volatile fuel prices and made travellers wary, though earnings beat analysts' estimates and the carrier indicated somewhat clearer skies heading into peak summer.
Jupiter Fund Management Reports Profit Jump
• Jupiter Fund Management fell 2.6% despite the asset-manager reporting a 67% jump in first-half pre-tax profit.
Howden Joinery Maintains Outlook
• Howden Joinery gained 1.6% after the kitchen supplier maintained its annual outlook and said it had hedged fuel costs through year-end.
Government Policy Announcements
Business Rate Cuts for Hospitality Sector
• Britain's new prime minister, Andy Burnham, said he would lower business rates for pubs, clubs and live music venues by 20% from April, his third announcement in three days of measures to help households and businesses.
Reporting Credits
(Reporting by Tharuniyaa Lakshmi in Bengaluru; Editing by Tasim Zahid)
