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Thursday Morning Markets: FTSE 100 Dips as Brent Jumps 4% Amid Iran Strike Reports

London shares slipped in early Thursday trade as Brent crude jumped about 4% amid reports of US preparations to resume combat in Iran, while Imperial Brands and Tesco gained after their updates.

The FTSE 100 fell 0.6% in early Thursday trade, with the FTSE 250 down 0.7%. Europe is weaker too, with the DAX down 0.8%, the CAC 40 falling 1% and the Euro Stoxx 50 dropping 1.2%.

Brent, the global benchmark crude price, jumped about 4% to $104.16. BP gained 1.4% and Shell 1.2% amid the oil rise.

Meanwhile, spot gold has added 0.2% to $4,118, while sterling has slipped 0.1% to $1.3200.

US-Iran

Axios reported, citing US officials, that the Pentagon told US Central Command (CENTCOM) several days ago to finish preparations to resume major combat in Iran. There is said to be no date and Donald Trump, the US President, has made no final decision, accoring to the report.

At least 12 tankers were attacked between 28 September and 5 October, the highest weekly level since the war began, according to maritime security sources. At a San Antonio rally Trump said: “I think the deal isn’t really something that I want to do, but they’re willing to offer us anything to stop.”

London Stock Movers

Focusing back on London-listed stock news, Imperial Brands rose 3.22% after saying it is on track for full-year guidance and announcing a new £1.5bn buyback.

Tesco gained 3.07% after raising its annual adjusted operating profit guidance to £3.15bn-£3.30bn from £3.0bn-£3.3bn, and lifting its buyback to £950m from £750m. First-half adjusted operating profit was £1,783m, up 6.3% at constant rates.

Foresight Group fell 3.90% and Unite Group about 3% after trading updates. Foresight said assets under management were flat at £13.0bn, and Unite said 95.6% of beds were sold and reiterated guidance.

Meanwhile, Bunzl announced the acquisition of Blueleaf Care, and Grafton Group revealed that Ian Tyler has informed the Board that, due to other commitments, he intends to step down as Chair of the Company.

IndexCompanyChange
FTSE 100Imperial Brands+3.22%
FTSE 100Tesco+3.07%
FTSE 100IG Group+2.32%
FTSE 100Standard Life-4.82%
FTSE 100WPP-2.36%
FTSE 100Rolls-Royce-2.32%
FTSE 250ASOS+2.88%
FTSE 250Harbour Energy+2.68%
FTSE 250Utilico Emerging Markets Trust+2.05%
FTSE 250Princes Group-4.76%
FTSE 250Oxford Nanopore-3.99%
FTSE 250Foresight Group-3.90%
Asktraders News Team
Asktraders News Team
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