Energy stocks keep FTSE 100 steady as trade deal optimism wanes
London's FTSE 100 was slightly lower on Thursday as recent optimism around the U.S.-China trade deal waned, but gains in heavyweight energy stocks and some companies limited declines.
The benchmark FTSE 100 was flat as of 0901 GMT, after coming within touching distance of an intraday record high. Mid-caps were down 0.6%.
U.S. President Donald Trump said on Wednesday that he was willing to extend a July 8 deadline for completing trade talks with countries, but it was not likely necessary as the U.S. would specify the terms of deals in a week or so.
The announcement comes after trade talks with China resulted in a deal to bring their truce back on track but failed to impress investors.
Risk assets sold off globally, with stocks lower in Asia and Europe. The main U.S. stock index futures were also down over 0.4% each.
Geopolitical tensions also added to the cautious mood after Trump pulled some personnel from the Middle east amid mounting tensions with Iran.
However, the FTSE 100 managed to outperform peers as heavyweight energy stocks gained 1.4%. Shell and BP were the biggest boosts to the index.
Some corporate news also helped, with personal care stocks up 0.9%, powered by a 2.3% gain in Tesco after the food retailer's UK sales growth accelerated in the first quarter.
Health and safety device maker Halma gained 4.1% after its annual adjusted pretax profit beat expectations.
Worries around UK-U.S. trade tensions were also lower as the country is the only one to have signed a trade deal with the U.S. after Trump's scathing tariffs shook up global financial markets.
Meanwhile, data showed that the British economy shrank more-than-expected, the biggest monthly drop since October 2023.
Among other stocks, Intermediate Capital Group and JD Sports lost 4% and 2.8%, respectively, as they traded without entitlement to their latest dividend payout.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Express Tribune
an hour ago
- Express Tribune
Oil up 6% as Israel strikes avoid oil sites
Listen to article Oil prices fell off multi-month highs hit earlier on Friday as Israeli air strikes avoided Iranian oil sites, but prices still up about 6% as investors worried that the tensions could disrupt Middle East oil supplies. Brent crude futures were up $4.11, or 5.9%, to $73.47 a barrel by 1712 GMT, after earlier soaring over 13% to an intraday high of $78.50, the strongest level since January 27. US West Texas Intermediate crude was up $4.38, or 6.4%, at $72.42, after earlier jumping over 14% to its highest since January 21 at $77.62. Friday's gains were the largest intraday moves for both contracts since 2022. The National Iranian Oil Refining and Distribution Company said oil refining and storage facilities had not been damaged and continued to operate. One primary concern, according to analysts, was whether the latest developments would affect the Strait of Hormuz, said Nikos Tzabouras, senior market analyst at In other markets, stocks dived and there was a rush to safe havens such as gold and the US dollar and Swiss franc. REUTERS
Business Recorder
2 hours ago
- Business Recorder
US says monitoring Israel-Iran attacks' impact on global energy supply
WASHINGTON: U.S. Energy Secretary Chris Wright said on Friday he and his team are working with the White House's National Security Council to monitor the situation in the Middle East and any potential impacts to global energy supply. Wright said on X, after Israel's strikes on Iran's nuclear sites and Iran's response of missiles on Israel, that President Donald Trump's policy of maximizing U.S. oil and gas output, which also involves slashing pollution regulations, has boosted U.S. energy security. Oil and gas sites in Iran, an OPEC member, have not been targeted, analysts have said. Global crude oil prices spiked on Friday, settling 7% higher at more than $74 per barrel on investor worries about conflict spreading to the wider Middle East. Iran strikes back at Israel with missiles over Jerusalem, Tel Aviv And U.S. gasoline prices could rise about 20 cents a gallon in coming days during peak U.S. summer driving season 'creating economic pressures and political headwinds for President Donald Trump, who campaigned on lowering energy costs,' analysts at ClearView Energy Partners said in a note to clients. ClearView said higher prices could push Trump to focus on tapping strategic petroleum reserves, seeking supply additions from the OPEC+ production group, and could complicate efforts to tighten sanctions on Russia, one of the world's top three oil producers. The U.S. Energy Department did not immediately respond to a question about the potential to tap the U.S. Strategic Petroleum Reserve (SPR), the world's largest, which currently holds 402.1 million barrels of crude. Fatih Birol, the head of the Paris-based International Energy Agency, said on X that the IEA oil security system, which includes the U.S. SPR, has more than 1.2 billion barrels of emergency stocks. The Organization of the Petroleum Exporting Countries slammed Birol's post, saying on X it raises false alarms and 'projects a sense of market fear.'
Express Tribune
5 hours ago
- Express Tribune
Trump and ancient Chinese wisdom
The writer heads the independent Centre for Research and Security Studies, Islamabad. He is currently a visiting Research Fellow at Fudan University, Shanghai Listen to article Is Donald Trump the present day manifestation of the ancient Chinese businessman who enjoyed the least of respect in society? A direct comparison may sound unfair to the president, but his fixation on tariffs – seemingly rooted in arrogant nationalism – has prompted many in China to recall how ancient Chinese emperors and philosophers viewed businessmen. The falling out of Trump and Elon Musk – two powerful businessmen – also perhaps offers the latest illustration of that Chinese wisdom on businessmen's propensity to be self-righteous, arrogant and self-serving when the situation so demands. When Trump, a businessman turned politician, intensified his pursuit of increased tax revenues by imposing customs duties on a wide range of US imports from various global sources, he elicited a reaction from even the most esteemed traditional partners, such as the European Union and India. While Trump's intentions to revitalise the US economy and achieve 'Make-America-Great-Again' resonated with many, his actions evoked a comparison in China to the behaviour of ancient Chinese businessmen. These individuals were renowned for their unwavering pursuit of personal gain, often disregarding societal norms and values. This is how businessmen were viewed in general. Within the traditional Chinese cultural hierarchy, the Emperor of course stood above everybody else, with the absolute authority. All others – the citizens of the empire – however, were divided into four distinct classes. While businessmen were respected for their wealth and success, their primary focus on profit was perceived as less noble than their contributions to society through learning or government service. The most esteemed members of this class were the wisemen, scholars, advisors and officials. Their invaluable contributions to the Emperor's governance were recognised through their knowledge, virtue and intellectual pursuits. Their writings and intellectual endeavours were highly valued and contributed to the state's development. The second most respected class consisted of farmers, who were responsible for cultivating crops and providing food for the population. They were regarded as the foundation of the economy, ensuring the sustenance of the entire population. Artisans, technicians, engineers and construction experts, who possessed specialised skills, were the third most esteemed class. Their contributions were instrumental in developing technical tools and facilitating daily life. The business community, comprising merchants, held a lowly position in society, regarded as the least respected class. The Emperor held a disdain for businessmen, believing they prioritised money over morality and would resort to any means, ethical or immoral, to achieve financial gain. Consequently, few businessmen sought proximity to the Emperor. While there were methods to evade the Emperor's disdain, businessmen were generally the least welcomed and least respected members of the royal court due to their perceived greed for wealth. However, this perception has shifted over time, not only in China but also in other parts of the world. Businessmen have played a pivotal role in the country's economic growth, exemplified by the billionaire founder of Ali Baba, Jack Ma. The concept of 'Chinese businessman wisdom' has emerged, referring to the practical, astute, and often pragmatic approach to business that is highly esteemed by both Chinese and international audiences. The traditional hierarchical structure has undergone a gradual softening, and various professions, including business, are now recognised for their unique contributions to society. The contemporary emphasis on economic development has fostered a more positive attitude towards business and entrepreneurship. The government actively encourages entrepreneurship and private enterprise, acknowledging the indispensable role of businesses in the nation's development. Nevertheless, certain actions are considered unacceptable and should not be crossed. Jack Ma's conduct a few years ago prompted many to draw upon ancient wisdom and draw parallels between the past and the present. His interactions with the central bank invariably drew comparisons to the past and often served as an example of a businessman attempting to exert control over the central bank. The context involved technical difficulties experienced by Ali-Pay, a digital payment system, in conjunction with the central bank. Upon making his public complaint, Jack Ma faced significant repercussions from the Chinese authorities. His passing remark about China's finance system was interpreted as a mockery by the Beijing authorities, leading to questions about his intentions. They expressed concern that Jack Ma might intend to control the finance system through Ali-Pay. As a result, Jack Ma encountered substantial opposition from the authorities. They argued that the Central Bank is a trusted institution – in fact a public Trust – that efficiently manages and looks after the interests of the people. If allowed to operate like a Western capital institution, entities such as Ali-Pay could potentially disrupt the system and harm the interests of the Chinese people. The official backlash compelled Jack Ma to take a break from business – a sort of sabbatical. However, he recently resurfaced with more empathetic views on China's financial system – more aligned with the national ethos as projected by the leadership. A Chinese friend described him as helpful and engaged in significant philanthropic activities – something expected of every affluent Chinese who are expected to pay back after benefitting under the system, which rests on a national spirit and ethos that keep citizens at the centre. The citizen, says the ancient Chinese philosophy, is central to a state's stability, and hence his/her welfare is paramount for the political economy. All indicators suggest the Chinese Communist Party continues to follow that golden philosophy. It's yet to be seen how much the Trump-Musk acrimony hurts the people. There couldn't have been a better validation of the Chinese definition of a businessman than the mutual public trolling both Trump and Musk indulged in following the implosion of their alliance.
