UK's FTSE 100 rises as energy and consumer staples gain
Market Performance and Key Drivers
June 10 (Reuters) - UK's FTSE 100 closed higher on Wednesday with energy and consumer staples stocks providing a lift, though the index remained stuck near three-week lows as investors monitored a fragile ceasefire in the Middle East.
The blue-chip FTSE 100 index closed 0.3% higher at 10,254.8 points, hovering near its lowest levels since mid-May. The midcap FTSE 250 advanced 0.5%.
Top Gainers and Sector Highlights
Consumer Staples Surge
• Consumer staples majors Tesco and Unilever were among the biggest gainers, climbing over 2% each.
Energy Sector Boost
• Crude oil prices jumped after Trump's remarks and UK energy stocks climbed 1.9%.
• EnQuest shot up 27% after the North Sea-focused oil producer agreed to buy interests in four offshore contracts in Malaysia.
Geopolitical and Economic Influences
Middle East Tensions
• Middle East tensions were high as the U.S. and Iran traded fire.
• U.S. President Donald Trump said Iran had taken too long to negotiate a deal and would "have to pay the price".
Inflation and Interest Rate Outlook
• Inflation concerns have led investors to price in a 25 basis point interest rate hike by the Bank of England by September, according to LSEG-compiled data.
Major Decliners
Retail Sector
• WH Smith <SMWH.L> plunged 16.2% after cutting its annual profit forecast for the second time in two months and launched an equity raise to bolster its finances.
Banks Under Pressure
HSBC and Standard Chartered
• Shares of Hong Kong exposed HSBC and Standard Chartered each fell more than 1%.
• The lenders have been under pressure since Beijing unveiled tighter capital controls to limit cross-border investments.
• Banks were among the biggest sectoral decliners with a 1% fall.
Utilities
• Elsewhere, water utility Pennon Group slipped 1.7% after its new CEO warned operational discipline must improve.
(Reporting by Johann M Cherian and Shashwat Chauhan in Bengaluru; Editing by Nivedita Bhattacharjee and Barbara Lewis)
