The FTSE 100 index ended Thursday's session nearly unchanged, edging down 0.04% to 10,712.83 points, as gains in energy stocks were offset by declines among precious metal miners. The mid-cap FTSE 250 also fell 0.3%, reflecting a cautious tone among investors ahead of the European Central Bank's (ECB) policy decision and ongoing corporate earnings reports.
Energy Stocks Rise on Oil Supply Concerns
Energy shares led sectoral gains on the FTSE 100, supported by a rise in oil prices. Brent crude moved higher after Yemen's Houthi group claimed attacks on two Saudi oil tankers, stoking fears that disruptions to global oil supplies could extend beyond the Strait of Hormuz. The geopolitical tension provided a tailwind for energy stocks, helping to limit the broader market's decline. However, gains remained modest as investors weighed persistent inflation risks and their potential impact on interest rate trajectories.
Precious Metal Miners Drag on Market
Precious metal mining stocks were the worst-performing sector, falling 2.5% as gold prices declined. Concerns that sticky inflation could prompt the U.S. Federal Reserve to raise rates later this year weighed on the yellow metal, pressuring mining shares. The weakness in this sector offset the positive contribution from energy stocks, contributing to the FTSE 100's slightly negative close.
ECB Decision in Focus
Market participants remained focused on the ECB's latest policy announcement, widely expected to hold interest rates steady. However, the central bank is anticipated to keep the door open for a potential rate increase in September, as it continues to monitor inflation dynamics. The decision comes amid a broader backdrop of central bank tightening, with the Fed also signaling a cautious approach. For more on how central bank policies are impacting markets, see our coverage of Dow Plunges 604 Points as Oil Spike and Tech Earnings Disappoint Investors.
EasyJet Shares Jump Despite Profit Decline
Among individual stocks, easyJet was a standout performer, rising 5.5% after reporting a 70% drop in third-quarter profit. The airline attributed the decline to volatile fuel prices and cautious traveler behavior linked to the Iran conflict. Despite the sharp profit fall, earnings exceeded analysts' expectations, and the company noted that conditions could improve as it enters the peak summer travel season. The positive sentiment lifted the stock, bucking the broader market trend.
Jupiter Fund Management Falls on Profit Growth
Jupiter Fund Management shares declined 2.6%, even as the asset manager reported a 67% increase in first-half pre-tax profit. The negative market reaction suggests investors may have been expecting stronger growth or are concerned about the sustainability of the earnings momentum.
Howden Joinery Maintains Outlook
Howden Joinery shares gained 1.6% after the kitchen supplier reaffirmed its annual outlook and disclosed that it has hedged fuel costs through the end of the year. The update provided some support to the stock amid a generally subdued session.
Government Announces Business Rate Relief
In policy news, UK Prime Minister Andy Burnham announced a 20% reduction in business rates for pubs, clubs, and live music venues, effective from April. This marks the third measure in as many days aimed at supporting households and businesses, as the government seeks to alleviate economic pressures. The announcement comes as investors continue to monitor inflation and interest rate expectations.
Overall, the FTSE 100 remained broadly stable, with energy gains offsetting mining losses and a cautious tone prevailing ahead of the ECB decision. For further context on how commodity price movements are influencing markets, see our analysis of Gold Edges Lower as Rising Yields Offset Iran Tensions, Oil Surge.
This article is for informational purposes only and does not constitute financial advice.
