London's FTSE 100 index edged up 0.04% to 10,576.97 on Friday, as gains in energy stocks fueled by rising crude oil prices offset declines in financial and consumer goods shares. The mid-cap FTSE 250 slipped 0.4%, reflecting broader caution among investors.
Energy and Utilities Lead Gains
Crude oil prices climbed after the United States intensified its bombing campaign against Iran, striking bridges and an airport. In retaliation, Tehran launched attacks on US military bases across the Middle East, stoking fears of supply disruptions through the Strait of Hormuz and the Red Sea. The energy sector advanced 1.7%, while utilities outperformed with a 2% gain, leading sectoral advances.
Financials and Luxury Goods Weigh
Banking stocks limited the index's upside, with Barclays, Lloyds Banking Group, and Standard Chartered falling between 1% and 1.6%. Personal goods stocks dropped 4.3%, dragged down by Burberry, which slid more than 5.6% after warning that the Middle East conflict was reducing tourist spending across Europe. The luxury retailer noted strong sales growth in the US and China during the April-June quarter, but the warning on softer European tourist demand overshadowed those results. For more on Burberry's recent performance, see Burberry Shares Slide 3% After Earnings Miss: Technicals Signal Further Weakness.
Political Shift: Andy Burnham to Become Prime Minister
On the political front, Andy Burnham is set to assume office as the UK's next prime minister on July 20, succeeding Keir Starmer, who resigned on June 22 after pressure from Labour lawmakers. Burnham returned to Parliament via a June by-election and quickly secured overwhelming backing from Labour MPs. His term begins amid a continued focus on clean energy investment, restrictions on new North Sea oil and gas licensing, and expanded public ownership in energy and infrastructure. Burnham will be the sixth UK prime minister since David Cameron stepped down in July 2016 following the Brexit referendum, a period that has also seen seven finance ministers and eight energy ministers. A cabinet reshuffle is expected after he takes office.
GSK Halts Chronic Cough Treatment
GSK shares fell 3.8% after the pharmaceutical company announced it would halt development of its experimental treatment for refractory chronic cough. The therapy failed a late-stage clinical trial, missing key efficacy goals across multiple dosage levels, which weighed on investor sentiment.
BP and ConocoPhillips Rise on Iraq Investment News
BP gained 1% and ConocoPhillips rose 1.2% following a CNBC report that both companies are set to announce billions of dollars in new investments in Iraq. The investments are part of US efforts to strengthen Iraq's energy sector and reduce reliance on export routes threatened by regional conflict. Meanwhile, the US Dollar Holds Near 100.80 as Middle East Tensions Fuel Safe-Haven Demand, reflecting broader market caution.
Market Outlook
The FTSE 100 remained broadly stable as strength in energy and utility stocks balanced declines in financials, consumer goods, and healthcare. Investors continue to assess geopolitical developments and the UK's changing political landscape, with energy policy and Middle East tensions likely to remain key drivers in the near term.
This article is for informational purposes only and does not constitute financial advice.
