FTSE 100 closes higher as tech stocks offset financial drag
FTSE 100 Market Summary and Key Movers
June 4 (Reuters) - Britain's FTSE 100 edged higher on Thursday, as gains in software and IT stocks offset a slide in Asia-exposed financial companies after a report that China was tightening offshore account rules.
The blue-chip FTSE 100 index closed up 0.3%, while the mid-cap FTSE 250 added 0.5%.
Financial Sector Performance
Impact of China’s Offshore Account Rules
• China-exposed lenders HSBC and Standard Chartered dropped 1.8% and 2.8%, respectively, after the South China Morning Post reported that Bank of East Asia's Shanghai branch had suspended opening Hong Kong accounts that enable mainland investors to invest overseas.
Insurance Sector Declines
• Asia-focused insurer Prudential fell 7.6%, its biggest percentage drop in more than three years.
Technology and Market Support
Tech Stocks Lead Gains
• However, tech stocks including RELX and London Stock Exchange Group, which rose 6% and 5.3% respectively, supported the broader market.
Geopolitical and Economic Influences
Middle East Ceasefire and Oil Prices
• Sentiment was also buoyed after Israel and Lebanon agreed to implement a new ceasefire after U.S.-mediated talks, raising hopes for progress in ending the wider U.S.-Israeli war with Iran and sending crude oil prices down more than 3%.
Energy Sector Reaction
• Energy majors Shell and BP each fell more than 1%.
UK Construction Activity
• Data showed Britain's construction activity shrank at the fastest pace in six years last month, as economic uncertainty and rising inflation linked to the Iran war hit new work.
Company-Specific Highlights
CMC Markets Surges
• CMC Markets jumped 16.8% after the trading platform forecast annual profit ahead of market expectations.
S4 Capital Slides
• S4 Capital slid 4.2% after the ad group's Chairman Martin Sorrell said progress on revenue growth and margin improvement was insufficient.
(Reporting by Shashwat Chauhan and Sruthi Shankar in Bengaluru. Editing by Harikrishnan Nair and Mark Potter)
