Britain's FTSE 100 sees worst day since May as Trump says Iran deal 'over'
Market Reaction and Sector Performance
July 8 (Reuters) - UK's FTSE 100 saw its biggest one-day fall since May on Wednesday after U.S. President Donald Trump said an initial agreement to end the war on Iran was over, re-igniting concerns about escalating tensions in the Middle East and lifting oil prices.
The blue-chip FTSE 100 index fell 1.7% to 10,489.04 points at close, its biggest single-day fall since May 15. The midcap FTSE 250 slipped 1.5%, its worst day since mid-March.
Index and Sector Overview
- More than 80% of the FTSE 100 components closed in the red.
- Most sectors were in the red; industrial metal miners were the biggest drag, while the energy index was the top boost.
Energy and Mining Stocks
- BP and Shell rose 3.5% and 2.3% respectively, and were among the top performers on the FTSE 100 as the energy sector received a boost from oil prices, which jumped around 8% on renewed fears of disruptions to Middle East oil supplies. [O/R]
- Precious metals miners fell 7% as gold prices dropped more than 1% amid renewed concerns about inflation and the prospect of higher interest rates. [GOL/]
Individual Stock Movers
- Among individual stocks, Jet2 climbed 8.2% after the British travel firm said tourists were more willing to commit to travel plans following the easing of Middle East tensions.
- Vistry dropped 7.1% after Britain's largest affordable housing builder warned of a first-half pre-tax loss of £30 million ($40 million).
- IG Group fell 2.2% after the online trading platform proposed setting up a new holding company in Jersey as part of a strategic overhaul to unlock shareholder value.
Economic Context
Meanwhile, Britain's jobs market downturn eased slightly last month, according to a survey of recruitment companies on Wednesday that showed an upturn in temporary hiring and starting salaries.
(Reporting by Tharuniyaa Lakshmi and Shashwat Chauhan in Bengaluru; Editing by Sahal Muhammed and Nia Williams)
