Opinion · Stock NewFTSE 100 continued to slide through the afternoon, falling 121 points, or 1.12%, to 10,691 at 2pm and trading close to its session low. Broker activity was mixed across London’s large- and mid-cap stocks on Wednesday, with several notable changes to ratings and price targets. Among FTSE 100 stocks, HSBC cut Burberry Group PLC (LSE:BRBY) to 'hold' with a 1,200p target, while RBC began coverage of AstraZeneca PLC (LSE:AZN, NASDAQ:AZN) at 'outperform' with a 14,500p target. Computacenter PLC (LSE:CCC), an FTSE 250 stock, saw opposing calls. Among other FTSE 250 stocks, Deutsche Bank cut Dunelm’s target to 1,000p from 1,050p, while JP Morgan reduced its target to 1,050p from 1,225p. Overall, broker moves indicate mixed sentiment, with caution towards retailers and healthcare stocks but stronger conviction on pharmaceutical and recruitment names.
The main driver for the FTSE 100’s decline was oil prices, which rose to $100.85 a barrel, fueling inflation concerns. Brent crude hit a six-week high due to escalating Middle East tensions, raising fears of supply disruptions. US stock futures were subdued, with Dow futures down 0.16%, S&P 500 futures flat, and Nasdaq 100 futures up 0.04%. Investors awaited the US Treasury’s bond buyback announcement. The Food and Drink Federation warned UK food inflation could reach 6.4% by July due to rising fuel costs and supply-chain expenses, urging government intervention.
The FTSE 350 food producers fell 0.20% at 7,615.53, reflecting pressure from rising energy and supply-chain costs. AB Foods outperformed its sector, rising 0.69% to 2,053p despite inflation warnings. UK gilt yields rose to one-week highs, with two-year yields at 4.629% and five-year yields at 4.727%, as markets reassessed inflation risks. Sterling remained firm, with the yen reaching a seven-month high and the dollar under pressure. The pound edged towards two-week highs against the dollar, while the euro rose 0.18% to $1.1641 ahead of an expected European Central Bank rate rise.
Amazon’s first sterling bond sale highlighted growing funding demand from tech companies amid the AI boom, with hyperscalers issuing over $200bn in debt this year—double the 2025 total. The FTSE 100 fell 95 points to 10,717, trading near its session low. Dow futures dropped 152 points, while S&P 500 and Nasdaq futures declined 0.2%. Brent crude climbed above $100 a barrel as US-Iran tensions intensified Gulf supply risks.
Small-cap shares remained subdued, with the FTSE SmallCap index falling 20 points to 8,142. Aberdeen Group PLC led FTSE 100 risers, climbing 2% to 252.6p after appointing Torbjörn Magnusson as chair-designate. Computacenter, BP, Centrica, SSE, Severn Trent, and Shell also advanced. The FTSE 250 declined 0.14%, while the AIM All-Share edged 0.07% higher.
The FTSE 100 recovered part of its opening loss but remained 0.27% lower at 10,782.52. Brent crude approached $100 a barrel as US-Iran hostilities and Saudi energy facility attacks raised supply concerns. BP gained 1.8%, but inflation fears persisted. Sterling’s rise to around $1.356 created a headwind for internationally focused companies. The FTSE 250 declined 0.14%, and the AIM All-Share edged 0.07% higher. Computacenter led blue-chip risers with a 3.2% gain.
The FTSE 100 opened sharply lower at 10,765.07, down 46.59 points, or 0.43%, due to a stronger pound and renewed inflation concerns. Brent crude climbed 1.52% to $99.41, while West Texas Intermediate rose 1.19% to $94.14. Sterling strengthened to $1.3560, reducing the sterling value of overseas earnings. Oil prices supported BP and Shell but raised inflation and interest rate risks. Gold edged up 0.14% to $4,445.19, while copper remained close to record levels at $6.7768 per pound.
Surging oil prices unsettled global markets, with Brent crude approaching $100 a barrel. IG expected the FTSE 100 to fall 51 points, or 0.5%, to 10,760. Brent crude traded around $99.01 after US strikes near Iran’s Kharg Island and Saudi attacks. Higher oil prices could support BP and Shell but pressure airlines, retailers, and energy-intensive businesses. Wall Street finished firmly lower, with the Dow Jones down 1.2%, S&P 500 down 0.6%, and Nasdaq down 0.3%. US Treasury yields remained elevated, with the 10-year yield at 4.79%. The UK sold a 30-year gilt at a record yield of 5.8168%, raising concerns about public finances. Copper reached a record $14,728 a tonne due to supply disruptions and AI demand. Asian markets were mixed, with Japan’s Nikkei 225 down 0.3%, Shanghai Composite down 0.1%, and Hong Kong’s Hang Seng down 0.5%. Australia’s S&P/ASX 200 was marginally lower. Sterling remained firm at $1.3551, adding pressure to the FTSE 100.
Source: Proactive Investors
