UK stocks set for weekly losses amid dimming prospects of swift US-Iran truce | The Mighty 790 KFGO
April 24 (Reuters) – UK’s main stock indexes fell on Friday and were headed for weekly losses as hopes of a swift resolution to the Iran war faded, with the Bank of England’s warning that global stocks could take a hit adding further pressure.
The blue-chip FTSE 100 index fell 0.6% to 10,391.16 points by 1005 GMT. The benchmark index was headed for its first weekly drop in five, set to erase all gains since the U.S.-Iran ceasefire was announced earlier this month. The midcap FTSE 250 slipped 1.1%.
• Investors remained on edge as crude oil prices rose on concerns of renewed military escalation in the Middle East, with no progress in negotiations to reopen the Strait of Hormuz.
• Higher oil prices dragged the travel and leisure sector 1.4% lower, with Wizz Air down 4.9%.
• The Bank of England’s Deputy Governor Sarah Breeden told the BBC on Friday that stock markets around the world are expected to fall as current share prices do not fully reflect the many risks facing the global economy.
• Heavyweight banks Barclays and HSBC fell more than 1%.
• Sterling gained 0.1% after data showed British retail sales rose by 0.7% in March. Major retailers have warned that persistent Mideast tensions are likely to cloud their earnings outlook.
• Personal care, drug, and grocery stocks were up 0.5%, among the few gainers on the FTSE 100 besides the energy and utilities sector.
• Computacenter jumped 9.9% after the technology and services provider said it would beat annual profit forecasts.
• Mondi dropped 8.2%, landing at the bottom of the FTSE 100 after the packaging company flagged rising costs due to the Iran war.
(Reporting by Utkarsh Tushar Hathi; Editing by Diti Pujara)
