The FTSE 100 Index Opens 0.02% Lower

The FTSE 100 fell around 0.5% to a seven-week low in afternoon trading on Thursday, as Brent crude surged above $105 a barrel after Iran warned it was prepared for a more intense conflict. Mining stocks came under heavy pressure, with Antofagasta and Anglo American falling more than 5%, while Endeavour, Glencore and Rio Tinto each declined by more than 3%. Associated British Foods was also among the biggest losers, dropping over 9% after Primark sales came in weaker than expected and the group outlined plans to demerge the retailer by December 2027. Energy stocks provided some support, with BP gaining 2% and Shell rising 1.8% as higher oil prices boosted the sector. Meanwhile, the European Central Bank raised interest rates by 25 basis points, in line with market expectations. The ECB also lifted its inflation forecasts and warned that price growth is likely to remain above its 2% target for an extended period.

The FTSE 100 hovered around the flatline on Thursday, remaining near seven-week lows, while oil prices were broadly steady, with Brent crude still above $100 a barrel as Iran warned it was prepared for a more intense conflict. Associated British Foods was the standout decliner, falling more than 9% after the Primark owner reported weaker-than-expected sales and announced plans to fully demerge the discount clothing retailer from the group by December 2027. The move highlights the increasingly disparate nature of AB Foods’ businesses. Elsewhere, Unilever fell 0.5%, Rio Tinto declined 1% and Glencore lost 0.5%, while Rolls-Royce and GSK also traded lower. Energy stocks provided some support, with BP gaining 0.5% and Shell edging higher. Meanwhile, investors were focused on the European Central Bank, which was expected to deliver another 25-basis-point interest-rate hike later in the day.

The FTSE 100 Index is losing 2 points. Losses were led by Associated British Foods (-8.32%), Pearson (-2.61%) and Endeavour (-2.37%). Offsetting the fall, top gainers were Whitbread (2.16%), Aberdeen Group (1.77%) and ICG (1.30%).