Key Points
- London’s FTSE 100 fell as investors grew nervous. The ongoing conflict between Israel and Iran was the main cause for concern.
- Investors were also waiting for the Bank of England’s interest rate decision.
- Tensions in the Middle East drove oil prices higher, which in turn benefited energy stocks such as Shell and BP.
- Several companies, including Hays and Revolution Beauty, saw their shares plunge after releasing bad news.
London stocks slipped on Thursday as investors remained on edge, worried about the escalating conflict in the Middle East and awaiting a key interest rate decision from the Bank of England. The benchmark FTSE 100 index was down 0.22%, with trading volumes lighter than usual due to a public holiday in the United States.
The main source of anxiety was the ongoing aerial attacks between Israel and Iran. President Donald Trump kept the world guessing about whether the U.S. would join the conflict, adding to the tension. The situation pushed oil prices higher, which in turn gave a boost to energy giants Shell and BP. Their gains helped limit the overall decline of the FTSE 100.
Beyond the conflict, all eyes were on the Bank of England, which was widely expected to keep interest rates on hold. The decision follows a recent meeting by the U.S. Federal Reserve, where Chair Jerome Powell gave a mixed message, warning of future inflation from Trump’s tariffs but still keeping two rate cuts on the table for next year.
Several individual companies saw their shares fall. Whitbread, the owner of Premier Inn, dropped after reporting another decline in sales. But the biggest losers were in the mid-sized company index.
Recruitment firm Hays saw its stock plummet 11.11% after it warned its annual profit would be lower than expected due to a slowdown in hiring. Cosmetics company Revolution Beauty plunged 22% after a takeover bid from Mike Ashley’s Frasers group fell through.
