The FTSE 100 ended a volatile session in positive territory on Thursday, as gains in mining stocks helped offset disappointing corporate earnings and a rise in oil prices. The blue-chip index closed up 11.13 points, or 0.1%, at 10,443.47.
The FTSE 250 rose 109.54 points, or 0.5%, to 22,947.92, while the AIM All-Share index added 3.83 points, or 0.5%, closing at 796.64.
Oil Prices Climb Amid Middle East Tensions
Oil prices rebounded after the head of the International Energy Agency warned that supplies could be entering a dangerous phase if no progress is made in resolving the Middle East conflict and reopening the Strait of Hormuz. Brent crude for July delivery traded at $107.98 per barrel on Thursday, up from $105.26 at the time of the London equities close on Wednesday.
Adding to the uncertainty, Iran’s supreme leader reportedly stated that the nation’s enriched uranium must not be sent abroad, a key sticking point in peace negotiations. US President Donald Trump described the latest talks with Iran as being on the borderline between a deal and renewed strikes.
Susannah Streeter, an analyst at Wealth Club, commented: “Although there is hope that talks between the US and Iran will bear fruit, after Trump claimed discussions were entering their final stages, neither side seems to be in a rush. Amid this uncertainty about where negotiations really do stand, oil prices have started to creep higher after their fall yesterday.”
UK Private Sector Contracts in May
Economic data released on Thursday showed that the UK private sector slipped into contraction in May, with services activity declining. The S&P Global flash composite purchasing managers’ index fell to 48.5 in May, a 13-month low, down from 52.6 in April.
Chris Williamson, an economist at S&P Global Market Intelligence, said: “The UK economy is facing a perfect storm, as rising political uncertainty adds to the growing impact from the war in the Middle East. Businesses are reporting falling output, surging inflation, supply shortages and job cuts in May.”
Rob Wood, chief UK economist at Pantheon Macroeconomics, noted that a July interest rate hike now looks “unlikely” after the PMI figures completed a set of dovish data this week. “We hold on to the call for now because we think payrolls will be revised up and the PMI exaggerates weakness because it tends to overreact to political uncertainty. But there is a good chance we will need to push back our rate hike call now,” he said.
The pound weakened, trading at $1.3401 on Thursday, down from $1.3456 on Wednesday. Against the euro, sterling eased to €1.1566 from €1.1568.
European and US Markets Decline
In Europe, the CAC 40 in Paris ended down 0.4%, and the DAX 40 in Frankfurt fell 0.5%. In New York, the Dow Jones Industrial Average was down 0.3%, the S&P 500 fell 0.4%, and the Nasdaq Composite dropped 0.6%.
Nvidia shares fell 1.9% despite the chipmaker reporting better-than-expected quarterly results and raising its guidance. Kate Leaman, chief market analyst at AvaTrade, said: “The market is no longer impressed by a beat on the quarter. It’s all about the next step in the story, and whether guidance can keep outrunning expectations that are already sky high.”
The yield on the US 10-year Treasury rose to 4.62% from 4.58%, while the 30-year yield increased to 5.14% from 5.11%.
FTSE 100 Movers: Miners Gain, Autotrader Falls
On the FTSE 100, 3i Group rose 3.3%, continuing its recent volatile run. Miners were prominent gainers, with Glencore up 1.4%, Antofagasta up 1.8%, and Rio Tinto up 1.9%.
Autotrader was the biggest faller, dropping 8.9% after its results and guidance missed market expectations, overshadowing a new share buyback. The Manchester-based company reported operating profit of £392.7 million for the year to March, up 4% but below the consensus of £398.7 million. Revenue rose 3.9% to £624.3 million, also below expectations. Citigroup attributed the misses to softer-than-expected retailer forecourt numbers due to a tougher used-car market and ongoing tensions with the Deal Builder product. For financial 2027, Autotrader expects operating profit between £395 million and £415 million, versus the consensus of £418.3 million.
BT Group fell 4.9% after its new dividend guidance disappointed against high expectations. On the FTSE 250, Qinetiq jumped 8.9% after extending its share buyback and reporting strong profit growth supported by a record order intake.
Gold traded at $4,508.26 per ounce, down from $4,536.32 on Wednesday.
The biggest risers on the FTSE 100 were 3i Group, up 71.0p at 2,250.0p; SSE, up 72.0p at 2,409.0p; ICG, up 53.0p at 1,886.0p; Babcock International, up 27.0p at 1,066.5p; and Centrica, up 4.20p at 198.9p. The biggest fallers were Autotrader, down 43.7p at 452.6p; Convatec, down 10.6p at 203.6p; BT Group, down 11.4p at 219.5p; Airtel Africa, down 9.0p at 325.2p; and Whitbread, down 59.0p at 2,367.0p.
Friday’s global economic calendar includes PPI and retail sales data from Canada, German GDP, and UK consumer confidence, retail sales, and public borrowing figures. The local corporate calendar features full-year results from Helical.
