𝓤𝓷𝓲𝓽𝓮𝓭 𝓝𝓮𝔀𝓼

The FTSE 100 ended a see-saw session in the green, as rising mining stocks offset disappointing earnings and a higher oil price.

The FTSE 100 closed up 11.13 points, 0.1%, at 10,443.47. The FTSE 250 ended up 109.54 points, 0.5%, at 22,947.92, and the AIM All-Share rose 3.83 points, 0.5%, at 796.64.

Oil prices were back on the rise as International Energy Agency chief Fatih Birol warned oil supplies could be “entering the red zone” if there is no progress towards resolving the Middle East war and reopening the Strait of Hormuz.

Brent crude for July delivery traded higher at 107.98 US dollars a barrel on Thursday, up from 105.26 dollars at the time of the equities close in London on Wednesday.

In addition, Reuters reported that Iran’s supreme leader has said that the nation’s enriched uranium must not be sent abroad. Uranium is a key sticking point in peace talks.

US President Donald Trump has described the latest discussions with Iran as being on the “borderline” between a deal and renewed strikes.

Wealth Club analyst Susannah Streeter commented: “Although there is hope that talks between the US and Iran will bear fruit, after Trump claimed discussions were entering their final stages, neither side seems to be in a rush.

“Amid this uncertainty about where negotiations really do stand, oil prices have started to creep higher after their fall yesterday.”

Elsewhere, figures showed the UK private sector slipped into contraction in May, with activity in services declining.

The S&P Global flash composite purchasing managers’ index fell to 48.5 points in May, a 13-month low, from 52.6 in April.

S&P Global Market Intelligence analyst Chris Williamson commented: “The UK economy is facing a perfect storm, as rising political uncertainty adds to the growing impact from the war in the Middle East.

“Businesses are reporting falling output, surging inflation, supply shortages and job cuts in May.”

Rob Wood, chief economist at Pantheon Macroeconomics said a July interest rate hike looks “unlikely” after the PMI figures completed a set of “dovish data this week”.

He said: “We hold on to the call for now because we think payrolls will be revised up and the PMI exaggerates weakness because it tends to overreact to political uncertainty. But there is a good chance we will need to push back our rate hike call now.”

This week has seen soft UK inflation and labour market data, leaving the Bank of England in a quandary as it assesses the impact of the Middle East crisis.

The pound traded at 1.3401 US dollars on Thursday, down from 1.3456 dollars on Wednesday. Against the euro, sterling eased to 1.1566 euros from 1.1568 euros on Wednesday.

In European equity markets on Thursday, the CAC 40 in Paris ended down 0.4%, and the DAX 40 in Frankfurt fell 0.5%.

In New York, the Dow Jones Industrial Average was down 0.3%, the S&P 500 was 0.4% lower, and the Nasdaq Composite dropped 0.6%.

Nvidia failed to sparkle, falling 1.9%, despite a signature beat-and-raise after results comfortably topped forecasts.

Kate Leaman, chief market analyst at AvaTrade, believes investors are no longer simply focused on Nvidia beating expectations, but on whether the company can continue raising the bar on future guidance.

“The market is no longer impressed by a beat on the quarter. It’s all about the next step in the story, and whether guidance can keep outrunning expectations that are already sky high,” she said.

The yield on the US 10-year Treasury widened to 4.62% on Thursday from 4.58% on Wednesday. The yield on the US 30-year Treasury stretched to 5.14% from 5.11%.

The euro traded lower against the greenback, at 1.1587 US dollars on Thursday against 1.1632 dollars on Wednesday. Against the yen, the dollar was trading at 159.17 yen, higher than 158.69 yen.

On the FTSE 100, 3i Group rose 3.3%, continuing its recent volatile run. Miners were prominent gainers with Glencore up 1.4%, Antofagasta up 1.8% and Rio Tinto up 1.9%.

Heading south was Autotrader, down 8.9%, after results and guidance missed market expectations, taking the shine off a new share buyback.

The Manchester-based owner of the UK’s largest online automotive marketplace said operating profit increased 4% to £392.7 million in the year to March from £376.8 million, below the £398.7 million company-compiled consensus.

Revenue ticked up 3.9% to £624.3 million from £601.1 million, but was also lower than the £632.0 million consensus.

Citigroup said below-consensus revenue and profit were largely driven by retailer forecourt numbers, which came in softer than expected because of a tougher used-car market and ongoing tensions with the Deal Builder product.

For financial 2027, Autotrader expects operating profit between £395 million and £415 million, versus the £418.3 million consensus.

BT eased 4.9%, after its new dividend guidance disappointed against high expectations heading into the print.

While on the FTSE 250, Qinetiq jumped 8.9%, as it extended its share buyback and reported strong profit growth supported by a record order intake.

Gold traded at 4,508.26 US dollars an ounce on Thursday, down from 4,536.32 dollars on Wednesday.

The biggest risers on the FTSE 100 were 3i Group, up 71.0p at 2,250.0p, SSE, up 72.0p at 2,409.0p, ICG, up 53.0p at 1,886.0p, Babcock International, up 27.0p at 1,066.5p, and Centrica, up 4.20p at 198.9p.

The biggest fallers on the FTSE 100 were Autotrader, down 43.7p at 452.6p, Convatec, down 10.6p at 203.6p, BT Group, down 11.4p at 219.5p, Airtel Africa, down 9.0p at 325.2p and Whitbread, down 59.0p at 2,367.0p.

Friday’s global economic calendar includes PPI and retail sales figures from Canada, German GDP data, and UK consumer confidence, retail sales, and public borrowing numbers.

Friday’s local corporate calendar has full-year results from Helical.

Contributed by Alliance News