London stocks fall as Middle East tensions weigh
Reuters
Published Apr 15, 2024 08:33
Updated Apr 15, 2024 17:31
By Shubham Batra, Pranav Kashyap and Khushi Singh
(Reuters) -The UK's benchmark FTSE 100 lost ground on Monday hurt by losses in heavyweight energy shares and precious metal miners on growing geopolitical risks due to conflict in the Middle East, while a rise in BAE Systems (LON:BAES) kept the declines in check.
The resources-heavy FTSE 100 fell 0.5% from nearing its record-high levels hit on Friday. The midcap FTSE 250 index was down 0.1%.
Precious metal miners led sectoral losses, sliding 5.2%, while heavyweight oil and gas shares dipped 1.8%, tracking lower crude prices as market participants dialled back on risk premiums amid Iran's weekend attacks on Israel. [O/R]
"Geopolitical risks are unusually elevated and are likely to remain so," said Emily Bowersock Hill, CEO and founding partner at Bowersock Capital Partners.
Aerospace and defence stocks advanced 1.0%, led by BAE Systems which rose 1.4% among other global defence stocks on growing tensions in the Middle East.
Markets will now shift their focus to British consumer prices and retail sales data later in the week for more clues on the Bank of England's monetary policy path.
Meanwhile, U.S. retail sales increased more than expected in March amid a surge in receipts at online retailers, further evidence that the economy ended the first quarter on solid ground.
Federal Reserve speakers, including Chair Jerome Powell, will also be on investors' radar on Tuesday.
Shares of Superdry tumbled 5.9% after the struggling British fashion chain said it is in advanced stages of preparing a restructuring plan that is expected to launch in the coming days. PageGroup (LON:PAGE) dropped 9.1% after the staffing company reported a nearly 13% fall in first-quarter group gross profit, reflecting slow hiring in major markets.
Ashmore lost 3.2% after the fund manager said its assets under management dropped in the first quarter, as choppy markets kept investor appetite for risk assets subdued.
Mitie Group (LON:MTO) topped the midcap index, climbing 6.6% as the outsourcer announced a share buyback programme.
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Written By: Reuters
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