FTSE 100 Index Continues Lower as Investor Worries Remain

The FTSE 100 fell 1.2% on Thursday morning as investor caution persisted across global markets. The FTSE 250 declined 0.5%, while Germany’s DAX dropped 1.5% and France’s CAC 40 slipped 1%.

Brent crude climbed as high as $114, intensifying fears of stagflation as energy costs continue to surge.

Meanwhile, domestic data showed the UK unemployment rate steady at 5.2%, broadly in line with expectations.

WELCOME BONUS - Free Share Bundle When You Invest £50! Get up to £500 cashback for investing with IG.

Invest in 15,000+ shares and ETFs. Open an account now, invest at least £50, and you’ll get a free share bundle worth between £40 and £200. T&Cs apply.

5.0

Open Account Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.

Later today, markets expect the Bank of England to hold interest rates at 3.75% as policymakers weigh the inflationary impact of the ongoing conflict in Iran and the Middle East.

Despite the broader market weakness, BP (LON: BP.) led the FTSE 100 risers, up 1.9% after announcing it had agreed to sell its Gelsenkirchen refinery and related businesses to Klesch Group.

The company now targets $6.5 billion to $7.5 billion of structural cost reductions by 2027, marking a second upward revision to its savings goal. BP said around $1 billion in underlying operating expenditure reductions are expected from the sale.

Prudential edged 1.1% higher, while Diploma gained 0.8%.

The biggest fallers were M&G, down 6.1%, followed by NatWest Group at -5.5% and Fresnillo, which dropped 5.4%.

Separately, Landsec said it had agreed a 192,000 sq ft pre-let to BP at its Timber Square development, with the site now 54% let.