Key Takeaways
- London's FTSE 100 fell 0.1% due to caution over Middle Eastern tensions.
- Precious metal miners saw the steepest decline, with Fresnillo and Endeavour Mining among top losers.
- Energy stocks rose as oil prices increased following U.S. sanctions on Iran.
London’s FTSE 100 index experienced a slight dip of 0.1% to close at 10,515.73 points by 10:13 GMT on Wednesday, reflecting investor caution over escalating tensions in the Middle East.
The precious metals sector was particularly affected, with miners experiencing a 2.3% decline. Fresnillo and Endeavour Mining were among the top losers, falling 2.8% and 2%, respectively.
In contrast, energy shares saw a modest rise of 0.3% as oil prices surged by around 2%. This increase was triggered by U.S. President Donald Trump’s reimposition of a naval blockade on all Iranian ports, coupled with threats from Iran's Islamic Revolutionary Guard Corps to close other export corridors.
The personal goods index led sectoral gains, rising 2.4% due to a significant 4.8% jump in Watches of Switzerland Group shares after positive recommendations from brokerages Barclays and UBS raised their target prices on the stock.
Telecom shares also contributed positively to the FTSE 100, with the OECD warning Britain must maintain fiscal discipline and address high energy prices to boost economic growth. This comes as Andy Burnham is set to become prime minister next week.
On Tuesday, the FTSE 100 had closed higher following strong earnings from major U.S. lenders that kicked off the reporting season. A softer-than-expected U.S. inflation reading also fueled expectations of a delay in interest rate cuts.
Among individual stocks, Rio Tinto reported better-than-expected second-quarter iron ore sales, supported by robust operational performance, leading to a 1.1% rise in its shares.
B&M saw a significant decline of 6.9% after reporting a 2.3% drop in first-quarter like-for-like sales in the UK market due to a slow start to the gardening season. However, growth in France helped lift group revenue.
