The FTSE 100 closed up 28.02 points, or 0.3%, at 10,360.32 on Thursday, shrugging off falls in oil majors and Asia-focused banks and insurers. The FTSE 250 rose 116.36 points, or 0.5%, to 23,302.65, while the AIM All-Share added 1.02 points, or 0.1%, to 808.26.
Oil prices continued their volatile week, with Brent crude for August delivery falling to $94.88 a barrel from $97.37 at the previous London close. BP and Shell dropped 1.2% and 1.5% respectively. The decline came as Iran reported “no tangible progress” in negotiations to end the war, even as the US House of Representatives passed a resolution seeking to halt American military action in Iran. Meanwhile, Israel struck south Lebanon and threatened new attacks on Beirut, despite a reported conditional ceasefire agreement.
Asia-focused financial stocks slumped after a media report that mainland Chinese residents face greater constraints in opening offshore accounts at major Hong Kong banks. Insurer Prudential fell 7.2%, while HSBC and Standard Chartered slid 2.2% and 3.2% respectively. JPMorgan noted that China’s state council decree 837, effective July 1, tightens outbound capital flows but is likely to have little practical effect.
In contrast, stocks perceived as benefiting from AI disruption fears led the risers, with Relx up 6.0%, London Stock Exchange Group up 5.3% and Autotrader up 3.4%. On the FTSE 250, CMC soared 17% after forecasting a “defining” period ahead and strong operating income.
In European markets, the CAC 40 in Paris ended up 1.2% and the DAX 40 in Frankfurt closed 0.6% higher. In New York, the Dow Jones Industrial Average rose 1.8%, the S&P 500 gained 0.3%, but the Nasdaq Composite dipped 0.2%. Broadcom’s stock plunged 14% despite record results, as AI revenue guidance fell short of expectations.
UK construction activity contracted sharply in May, with the S&P Global construction PMI falling to 38.2 from 39.7, marking the steepest decline since May 2020 (excluding the pandemic). The pound traded at $1.3436, little changed, while against the euro it eased to €1.1558. Gold rose to $4,471.69 an ounce.
