The FTSE 100 Index Closes 0.28% Lower

The FTSE 100 closed marginally down at 10,604 on Thursday, following yesterday's 2.5% relief rally, as investors remained cautious over the fragile US-Iran truce and the possibility of protracted negotiations. Iran said Israel’s ongoing strikes against Hezbollah in Lebanon breach the ceasefire agreed with the US, and Tehran has warned it could abandon negotiations if the attacks continue. At the same time, shipping traffic in the Strait of Hormuz remains constrained, causing a renewed increase in oil prices. Entain and Informa were the top losers, falling 8.4% and 3.8%, respectively. At the same time, several stocks traded ex-dividend, including Standard Life, Reckitt Benckiser, InterContinental Hotels Group, Centrica, Haleon, Rentokil Initial, and Croda International. By contrast, BP shares rose 3.2%and Shell gained 1.4%, on the back of higher oil prices. Defensive stocks such as United Utilities (2.3%), SSE (1.9%) and Severn Trent (1.9%) also saw buying interest.

The FTSE 100 Index decreased -30 points or 0.28 percent on Thursday to close at 10579 points. The decline was led by Compass (-99.02%), Entain (-8.94%) and WPP (-5.61%). On the upside, the strongest performers were BP (3.16%), United Utilities (2.16%) and Severn Trent (2.04%).

The FTSE 100 traded slightly lower on Thursday, slipping about 0.1% to 10,600 points, as investors focused on the uncertain future of the US-Iran ceasefire and the prospects for lasting peace negotiations. Iran dismissed the possibility of continuing talks with the US after Israeli strikes in Lebanon, while the Strait of Hormuz remained closed to unpermitted vessels, pushing crude prices up over 3% and fueling inflation concerns. Markets now anticipate at least one interest rate hike by the Bank of England this year. Despite the broader downturn, the FTSE 100 outperformed its European counterparts, buoyed by its exposure to rising oil prices through gains in BP (+1.9%) and Shell (+0.5%). Utility stocks also provided support, as their stable revenue streams and lower sensitivity to macroeconomic volatility make them attractive in uncertain times. Top performers included United Utilities, Centrica (parent of British Gas), SSE, National Grid, Severn Trent, and Vodafone.