255 stories mentioning FTSE 100Updated 6h ago
The UK benchmark swung on US-Iran peace-framework developments, ending one week up 1.63% but later closing 0.39% lower as a 60-day deal awaited signing.
The UK's retail prices rose 3.1% year over year in May, following a 3% increase in April, data from the Office for National Statistics showed Wednesday.The reading is below market expectations of a 3.3% increase.On a monthly basis, the index was 0.2% higher, against the prior 0.7% gain and the expected 0.5% jump.
Producer input prices in the UK climbed 8.7% year over year in May, following the revised 7.9% gain earlier, data from the Office for National Statistics showed Wednesday.Analysts expected an 8.8% jump for the month.Meanwhile, producer output or factory gate prices gained 4% annually, as expected, against the revised 4.1% increase earlier.On a monthly basis, producer input prices ticked up 0.2% in May, compared with the revised 2.6% rise previously and expectations of a 0.5% rise. Monthly factory gate prices were 0.5% higher, in line with market expectations and versus the revised prior 1.5% growth.
Britain's annual inflation rate remained stable at 2.8% for the second consecutive month in May, according to data from the Office for National Statistics published Wednesday.Analysts expected a 3% rate for the month.On a monthly basis, consumer prices were 0.2% higher, against the 0.7% uptick in April and the market forecast of 0.4% growth.Meanwhile, the UK's annual core inflation rate was 2.6%, compared with the prior 2.5% and expected 2.7%. Month over month, core consumer prices gained 0.3%, against the previous reading of a 0.7% rise and the consensus estimate of a 0.4% increase.
London's FTSE 100 closed 0.61% in the green on Tuesday as investor sentiment improved following news of a preliminary peace agreement between the US and Iran.Details of the memorandum of understanding between the two nations are expected to be released in 24 to 48 hours, a US official told Deutsche Bank Research on Monday. The US and Iran are poised to start technical talks later this week.Oxford Economics said the agreement should help ease inflationary pressures, though it expects only a limited boost to global economic growth. "Overall, this reinforces our long-held view that the Federal Reserve and the Bank of England won't hike rates and lessens the chance that central banks that have already raised interest rates, despite a weak economic backdrop, hike again."In other news, the UK and the European Union agreed to hold their second summit on July 22. "My Labour Government is delivering on our promise to reset our relationship and put Britain at the heart of Europe. Together we will tackle the cost of living, boost jobs and create opportunities for young people," UK Prime Minister Keir Starmer said in a post on social media platform X.On the corporate front, shares of Rathbones Group (RAT.L) tumbled 17.01% after the wealth manager said it expects to incur 60 million pounds sterling in additional costs to address compliance shortcomings identified in a regulatory review."We expect the regulatory review may result in a delayed net flow recovery by 6-12 months, driven by 1) pause of [enhanced due diligence] clients, and 2) disruption to business and [investment managers]," BofA Global Research said, adding that it expects softer funds-under-management growth to delay the company's target of reaching a 30% underlying operating margin in fourth quarter.AlphaValue/Baader Europe, meanwhile, trimmed J Sainsbury's (SBRY.L) EPS forecasts, citing management's "more cautious" underlying operating profit outlook for fiscal 2027.The research firm cut the British supermarket chain's fiscal 2027 EPS estimate by 7.52% to 0.238 pound and reduced its fiscal 2028 forecast by 7.85% to 0.268 pound. Sainsbury's edged down 0.74%.
Berenberg expects the Bank of England to lower its key interest rate by the end of 2026 amid a drop in energy prices, barring a renewed increase, after the US and Iran reached a preliminary deal to end the war and reopen the Strait of Hormuz."A resumption of energy exports from the Persian Gulf would rule out a Bank of England (BoE) interest rate hike. The oil price futures curve is now broadly in line with the most benign of three scenarios that the MPC set out at its last meeting, in which CPI inflation fell to 1.5% in Q2 2028," Berenberg Senior UK Economist Andrew Wishart said in a Tuesday note.Should the deal result in a recovery in energy supply, the research firm forecasts the BoE's monetary policy committee will gradually shift to a loosening bias from a tightening one and hold off on increasing the bank rate "for as long as possible.""Even if Strait of Hormuz were to remain blocked, we doubt that the BoE would raise interest rates by much. In the benign scenario that now appears more likely, we think that the next move will be a cut, in December," Wishart noted.The BoE is set to hold its next monetary policy meeting on Thursday. The bank rate currently stands at 3.75%.
Countries particularly hit the hardest by the war in the Middle East are those that are heavily dependent on energy imports and have limited policy space, according to the International Monetary Fund."More than three months into the war in the Middle East, the global economy appears to be holding up," IMF Managing Director Kristalina Georgieva said in a blog post published Monday. "But an overall resilient global picture masks significant disparities. Even among advanced economies, some countries and communities have been harder hit. And in Africa, the negative impacts are more conspicuous. Meanwhile, with the prolonged closure of the Strait of Hormuz and infrastructure in the Middle East damaged by the fighting, uncertainty and risks remain high."Georgieva noted that Europe, which heavily relies on imported oil and gas, is facing higher inflation due to increased energy prices. France, Italy and Germany are among the euro area countries that have logged an increase in inflation since the war began in February.
London's FTSE 100 closed 0.39% down on Monday as markets weighed a US-Iran agreement on a 60-day peace framework, with a formal signing scheduled in Switzerland for Friday.While full details are still uncertain, US President Donald Trump said the agreement would pave the way for the reopening of the Strait of Hormuz and the lifting of the US naval blockade following a formal signing in Switzerland on Friday. Negotiations over Iran's nuclear program are set to continue."What can be said with some confidence is that a credible reopening of the Strait of Hormuz would be one of the most important developments for the global economy at this juncture, particularly given that US headline Consumer Price Index (CPI) is above 4% for the first time since 2023, real wages are declining for a second consecutive month, and the [European Central Bank] is still tightening policy into an energy shock, leaving the system with limited capacity to absorb further supply disruption," Rystad Energy said. "In that context, every barrel previously constrained through the Strait represents inflationary pressure that would begin to unwind, at least at the margin."At home, the UK government proposed banning social media use for children under 16, with the restrictions expected to take effect in spring 2027 if approved by parliament. The ban will include Snapchat, TikTok, YouTube, Instagram, Facebook, and X, but exclude messaging services like WhatsApp and Signal.In corporate news, telecommunications company Vodafone (VOD.L) dropped 2.81% on the blue-chip index after Deutsche Bank Research reduced its price target to 1.5 pounds sterling from 1.55 pounds, with a buy rating."Whilst telco markets remain periodically combative (it was ever thus), VOD is facing fewer major conflicts across its now more focused footprint and we see material reparation from the UK (synergies), EM (strong EUR growth) and balance sheet simplification (associate buy-ins and disposals) which more than mitigate a Germany drag (ahead of an eventual recovery). We reflect new guidance, a delay to the Kenya deal and the purchase of UK minorities (a postponement rather than curtailment of improved returns) and envisage multiple levers for equity appreciation," analysts said.AstraZeneca's (AZN.L) Alexion unit said the US Food and Drug Administration granted Priority Review to its supplemental biologics license application for Ultomiris, or ravulizumab, for the treatment of adults with immunoglobulin A nephropathy. The drugmaker was down 1.95% at the end of the session.Looking ahead, investors will focus on the Bank of England's interest rate decision and labor market data on Thursday, following the release of UK inflation figures on Wednesday. Consumer confidence and retail sales data are due on Friday.
Britain's FTSE 100 index ended the trading week 1.63% higher, buoyed by renewed investor optimism over an interim peace agreement between the US and Iran.Washington and Tehran could sign a deal to reopen the Strait of Hormuz next week on the sidelines of the Group of Seven summit in Switzerland, Bloomberg News reported, citing senior officials. The terms of the memorandum of understanding are still subject to approval by Iran's Supreme Leader Mojtaba Khamenei, an unnamed European official told the news outlet.News of a potential deal sent oil prices down over 2% on Friday. BP (BP.L) and Shell (SHEL.L) also tumbled 1.98% and 1.69%, respectively, making them the two biggest losers on the blue-chip index.In corporate news back home, Flutter Entertainment (FLTR.L) plans to delist its ordinary shares from the London bourse on Aug. 3, but will continue to list in New York. The online sports betting and gaming company edged down 3.33% in London at close.On the economic front, Britain's monthly gross domestic product fell 0.1% in April 2026, in line with expectations, following a 0.3% rise a month ago, data from the Office for National Statistics showed. The latest figure, which marks the first economic contraction since August 2025, was driven by a fall in services, offset by growth in construction. Meanwhile, production stagnated during the month."While UK GDP grew by 0.7% in the three months to April, the contraction in April is more indicative of growth prospects for the economy going forward. We expect UK GDP growth to slow in the second quarter," according to Yael Selfin, vice chair and chief economist at KPMG in the UK.The week ahead will see a barrage of economic data in the UK, including inflation, labor market figures, the Bank of England's interest rate decision, retail sales, and public sector net borrowing.
BofA Global Research forecasts the Bank of England will retain its key rate at 3.75% at its June 18 monetary policy meeting, with a 7-2 vote in favor of a hold and risks of a 6-3 vote."Dovish inflation/labour market data, lack of explicit guidance on June and MPC's patient approach is likely to mean a hold. The dovish data should reduce the urgency for the BoE to act, especially with swing voters not showing a rush to hike," analysts said Thursday in a preview note.Looking forward, the research firm anticipates the UK central bank to raise its benchmark rate in July and September amid expectations of continued high energy prices through 2026 and increased risks of second-round effects."Moreover, the BoE is currently taking some comfort from the tightening in financial conditions weighing on inflation, but the BoE actually needs to credibly deliver on the hikes priced in to maintain those tight financial conditions," BofA added.Three quarterly rate cuts to 3.5% are then projected to follow, beginning from the second quarter of 2027, with risks of 3.25% and earlier reductions.
The British economy contracted for the first time in eight months as the impact of the ongoing war in the Middle East began to be felt more broadly across businesses.The UK's gross domestic product fell 0.1% month over month in April 2026, following a 0.3% increase in March 2026, data from the Office for National Statistics showed Friday. The reading, which matched the market forecast, marks the first monthly fall in GDP since August 2025.A 0.2% fall in services drove the decline in GDP, offsetting a 0.1% rise in construction, largely due to a negative contribution from administrative and support service activities and from arts, entertainment and recreation. The ONS said some of the declines "are likely to be attributed to the outbreak of conflict in the Middle East affecting UK-based businesses."Meanwhile, production showed no growth in April, following a 0.2% fall in March."We expect this slowdown to intensify as higher energy costs feed through the economy, with the impact likely to be felt most accurately in the third quarter as the energy price cap rises," said Fergus Jimenez-England, associate economist at the National Institute of Economic and Social Research, following the data release. "That said, we expect the Bank of England to leave interest rates unchanged at next week's meeting."On a yearly basis, the British economy grew 1.2% in April, against the prior 1.2% expansion and the consensus estimate of a 1.3% gain.Separately, the country's goods and services trade deficit rose by 7.7 billion pounds sterling to 9.9 billion pounds in the three months to April, ONS data showed the same day. The goods deficit increased by 7.6 billion pounds to 62.5 billion pounds, while the services surplus declined by 200 million pounds to 52.6 billion pounds.
Britain's services output fell 0.2% month over month in April, following a 0.3% gain in March, according to data from the Office for National Statistics published Friday.On a yearly basis, the index rose 1.7%, against the 1.5% increase earlier.
Construction output in the UK inched up 0.1% month over month in April, following a 1.5% increase in March, the Office for National Statistics said Friday.On a yearly basis, construction output was 1% lower, compared with the 0.3% decrease earlier and the market forecast of a 1.7% decline.
Britain's goods and services trade deficit rose by 7.7 billion pounds sterling to 9.9 billion pounds in the three months to April, the Office for National Statistics said Friday.The UK's goods trade deficit increased by 7.6 billion pounds to 62.5 billion pounds, while the services trade surplus declined by 200 million pounds to 52.6 billion pounds.
The UK's monthly manufacturing production edged up 0.4% in April, following a 1.2% increase in the prior month, the Office for National Statistics said Friday.Analysts expected a 0.2% fall for the month.On a yearly basis, British manufacturing output rose 1%, compared with the 1.2% growth earlier and the consensus estimate of a 0.4% gain.
The UK's monthly industrial production stalled in April, following a 0.2% fall in March, the Office for National Statistics said Friday.Analysts expected a 0.1% increase for the month.On a yearly basis, UK industrial output declined 0.2%, against the zero growth earlier and the consensus estimate of a 0.1% drop.
The UK's gross domestic product fell 0.1% month over month in April, following a 0.3% increase in March, the Office for National Statistics said Friday.The reading, which matched the market forecast for the month, marks the first monthly fall in UK GDP since August 2025.On a yearly basis, the British economy grew 1.2%, against the prior 1.2% expansion and the consensus estimate of a 1.3% gain.
London's FTSE 100 rallied 0.48% on Thursday's close ahead of Friday's release of key UK economic data, including April gross domestic product figures that could offer clues on the economy's strength and the Bank of England's policy path."We expect the Monetary Policy Committee to hold Bank Rate at 3.75% at next week's meeting on June 18," Oxford Economics UK said. "The vote split will probably be slightly narrower than in April's decision, with Megan Greene likely to join Huw Pill in voting for a hike due to shared concerns that second-round effects could prove larger than expected."Elsewhere, the European Central Bank raised its three key interest rates by 25 basis points at its June meeting, citing inflationary pressures linked to the Middle East conflict. The move marked the ECB's first rate increase since 2023.On the economic front, the Royal Institution of Chartered Surveyors house price balance stood at -35% in May 2026, unchanged from the revised April 2026 reading. The figure missed the consensus estimate of -31% and remained the weakest since November 2023."The May RICS survey is best described as a market trying to stop the bleeding rather than one that is healing," RBC Capital Markets said. "The headline numbers remain deeply negative across demand, supply and prices, but the direction of travel is at least no longer uniformly downward. For the first time since January, new buyer enquiries and agreed sales stopped falling further into negative territory, both holding steady month- on-month at net balances of -34% and -37% respectively."In corporate news, Intertek Group (ITRK.L) climbed 1.65% after Swedish private equity firm EQT secured an extension of the deadline to make a firm offer for the British assurance, testing, and certification company to June 18.Halma (HLMA.L) fell 15.38%, making it the index's worst performer, despite reporting higher fiscal 2026 attributable profit and revenue year over year. The life-saving technology group also expects low double-digit organic revenue growth in constant currency for fiscal 2027.Geopolitical risks also remained in focus as the US and Iran traded fresh attacks for a second day, raising concerns over regional stability and potential disruptions to global energy supplies despite ongoing diplomatic efforts.
The UK Royal Institution of Chartered Surveyors house price balance stood at -35% in May, unchanged from the revised reading in the previous month, according to residential market survey data released Thursday.The latest reading missed the consensus estimate of -31% and remained the weakest since November 2023.House price expectations for the next three months deteriorated to -45% from -39%, suggesting further downward pressure on prices.
London's FTSE 100 gained 0.27% on Wednesday's close as US strikes in response to the alleged downing of an American helicopter over the Strait of Hormuz led Iran to attack a US base in Jordan and 21 other Gulf targets."Tehran has denied responsibility for shooting down the helicopter, although Iranian officials issued sharp warnings following the US operation," Deutsche Bank Research said. "The exchange has underscored the fragility of the April ceasefire and cast fresh doubt over President Trump's repeated assertions that a broader peace deal was close."In corporate news, Experian (EXPN.L) dropped 2.41% to take a spot among the worst performers on the blue-chip index after Deutsche Bank Research lowered the data and technology company's price target to 35 pounds sterling from 40 pounds, with a buy rating."In [business-to-business], our core thesis is that the AI platform shift strengthens the group's market position. For Experian, software is distribution not product... We expect the AI platform shift to further accelerate falling costs for these products - and expect the group to have an opportunity to pursue additional, richer value pools as a result. Experian has a preferential position to take advantage of these opportunities: it has scaled distribution, sits within complex embedded credit decisioning infrastructure, and is a highly trusted counterparty to regulated institutions," analysts said.On the flip side, Tritax Big Box REIT (BBOX.L) gained 4.86% after it received approval from the UK Secretary of State for its proposed data center in Manor Farm, Heathrow, UK. The decision comes earlier than Tritax expected.Meanwhile, mid-cap constituent WH Smith (SMWH.L) tumbled 16.17% after it lowered its fiscal 2026 outlook, citing uncertainty due to the Middle East conflict and gross margin pressures. The travel retailer now expects headline group pretax profit and non-underlying items of 75 million pounds to 90 million pounds, compared with the previous forecast of 90 million pounds to 105 million pounds.
The KOF Swiss Economic Institute said Wednesday the world economy continued to see moderate growth in June as its global coincident barometer remained stable while its leading barometer rose.The Coincident Global Economic Barometer edged up 0.1 point from the prior month to 103.2 points amid a negative contribution from Asia, Pacific & Africa. Meanwhile, the Leading Global Economic Barometer increased 0.9 point to 101.2 points, thanks to the region's positive contribution offsetting the Western Hemisphere's negative contribution."While both remain slightly above average, the leading indicator has been lower than the coincident indicator for the second consecutive month. From a regional perspective, this is solely driven by sentiment in the Asia-Pacific and African regions. There, the outlook is below average, probably reflecting the consequences of the energy shortage caused by the de facto closure of the Strait of Hormuz," KOF director Jan-Egbert Sturm said.
Showing 101-120 of 255
