London's FTSE 100 slipped on Thursday as U.S.-Iran tensions and weak technology stocks weighed on the blue-chip index. The midcap FTSE 250 climbed, lifted by a takeover bid for Rotork, while Ocado sank to a 13-year low.
London's FTSE 100 fell 0.2% to 10,492.99 points by 1038 GMT on Thursday, as escalating tensions between the U.S. and Iran dampened risk appetite. Weakness in technology stocks added to the pressure on the index.
Iran said the Strait of Hormuz was an inviolable red line, warning that if President Donald Trump carried out his threat to attack Iran's infrastructure, it would strike all infrastructure across the Gulf region. Technology stocks led the losses, with data and technology firm Experian falling 2.3% after reporting in-line first-quarter results and maintaining its annual outlook, while peer Relx was down 1%.
The midcap FTSE 250 rose 0.3%, helped by a 66.8% jump in Rotork after Swiss engineering group ABB announced a $5.5 billion takeover of the British automation company. By contrast, Ocado tumbled 18.8% to a 13-year low after the online grocery and technology group failed to show tangible progress in talks to secure new U.S. partners. Frasers Group fell 5.4% after the retailer declined to provide a fiscal 2027 outlook.
Britain's economy eked out minimal growth in May as the services industry expanded but other sectors shrank, suggesting fragile confidence among businesses amid the Iran conflict and a change of prime minister at home. According to Reuters, Danni Hewson, head of financial analysis at AJ Bell, warned that the UK's high levels of debt make it "particularly vulnerable to further inflation shocks" from continued conflict in the Middle East.
Source: Reuters
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