UK’s FTSE 100 opens flat as banking losses counter energy boost

UK’s FTSE 100 opens flat as banking losses counter energy boost

On June 26, London stocks experienced a slight decline as defence firms lost ground following an aborted mutiny by mercenaries in Russia. However, gains in commodity-linked stocks prevented further losses. The blue-chip FTSE 100 ended the day 0.1% lower, after hitting a three-month low earlier in the session. The more domestically-focussed FTSE 250 midcap index fell 0.5%, touching a three-month low. BAE Systems, Britain’s biggest defence company, fell 2.1%, while the aerospace and defence sector as a whole fell 1.3% on news that the mutiny had ended. Christopher Peters, trading floor manager at Accendo Markets, noted that “Defence stocks tend to benefit from bad news in terms of geopolitical tensions.”

Commodity-linked sectors checked losses after copper and oil prices gained, as some investors shrugged off uncertainties from the failed mutiny. Base metal miners and oil stocks added 1.0% each. The exporter-heavy FTSE 100 is on track to post quarterly losses after two straight quarters of gains, as surging domestic inflation and continued interest rate hikes by the Bank of England pressured equities. Giles Coghlan, chief market analyst at HYCM, said that “Investors are still reeling after that very strong inflation print that we had out of the UK last week.”

A RushHourDaily poll suggested that The Bank of England will raise borrowing costs 50 basis points higher than was thought only two weeks ago, in two quarter-point moves. Vodafone led losses on the index, down 3.6% to hit a 26-year low after a report British lawmakers had raised concerns over its merger with CK Hutchison’s British operations. Cineworld Group tanked 17.9% after the cinema chain operator said it will file for administration as part of a proposed restructuring plan. Aston Martin jumped 10.8% after the luxury carmaker entered into a strategic supply agreement with U.S.-based Lucid Group to make electric vehicles.

Reporting by Shashwat Chauhan and Shristi Achar A in Bengaluru; Editing by Sherry Jacob-Phillips and Andrew Heavens. Our Standards: The Thomson RushHourDaily Trust Principles.

About News Team

Hi, I'm Alex Perez, an experienced writer with a focus on lifestyle and culture news. From food and fashion to travel and entertainment, I love exploring the latest trends and sharing my insights with readers. I also have a strong interest in world news and business, and enjoy covering breaking stories and events.

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