The FTSE 100 Index Closes 1.51% Lower

The FTSE 100 Index decreased -159 points or 1.51 percent on Thursday to close at 10408 points. The decline was led by 3i (-7.86%), Fresnillo (-6.96%) and Reckitt Benckiser (-6.25%).

The FTSE 100 dropped more than 1% to a 3-week low on Thursday, after a 0.8% rebound on Wednesday, as the ongoing Middle East conflict continued to dampen investor sentiment. Mining stocks led the decline, partly because gold and silver prices weakened on expectations that US interest rates may stay higher for longer. Precious-metal producers Fresnillo and Endeavour Mining fell sharply by around 6–7%. Other major miners also came under heavy pressure, including Rio Tinto (-5.7%), Antofagasta (-4.2%) and Anglo American (-4.2%). Reckitt Benckiser also declined more than 6% despite reporting a solid 5.4% rise in fourth-quarter like-for-like sales. Airline stocks were hit as well, with EasyJet down 4.7% and International Airlines Group falling 3.7%, after airspace closures across the Middle East forced more than 23,000 flight cancellations globally EasyJet is also set to exit the index. In contrast, Rentokil Initial surged more than 10% after reporting stronger annual profits.

The FTSE 100 slipped about 0.3% on Thursday, reversing part of the previous session’s 0.8% rebound as the ongoing conflict in the Middle East continued to dampen investor sentiment and weigh on risk assets. Travel-related stocks were among the hardest hit as airlines faced widespread disruptions. Airspace closures across the region have forced carriers worldwide to cancel more than 23,000 flights since the fighting began. As a result, shares of easyJet dropped roughly 4%, while International Airlines Group fell over 3.5%. In contrast, rising crude prices supported energy majors, with BP and Shell each gaining around 1%. Meanwhile, Rentokil Initial jumped nearly 10% after reporting higher annual profits, and Taylor Wimpey gained over 3% after announcing a share buyback and a strong start to its spring selling season.