UK stocks fall as Middle East conflict hits risk appetite
British equities ended lower in a broad-based selloff on Tuesday, with hostilities between Iran and Israel weighing on market sentiment and focus on a slate of rate decisions from central banks including the Bank of England this week.
The blue-chip FTSE 100 index closed 0.4% lower, with more than 70% of its components clocking losses - though the index was still just a whisker away from its all-time highs.
As the Israel-Iran conflict entered its fifth day, U.S. President Donald Trump indicated he may send senior American officials to meet with the Islamic Republic.
Trump also left early from the Group of Seven summit in Canada, where he signed a trade deal with British Prime Minister Keir Starmer.
Heavyweight banks bore the brunt of the selling pressure, with top lenders HSBC, Standard Chartered and Barclays each down more than 1%.
Travel and leisure stocks also saw heavy selling with airline operators Wizz Air and British Airways owner IAG down 7.5% and 4.4%, respectively.
Heavyweight energy gained 1.5% with oil prices ticking higher due to tensions in the Middle East. BP and Shell added more than 1% each as the top gainers on the blue-chip.
FTSE 100 pulls back from record as ME tensions escalate
Looking ahead, the spotlight this week will be on central bank meetings, with the Bank of England set to meet on Thursday and the U.S. Federal Reserve's verdict on Wednesday. Both are expected to keep rates steady.
'The key takeaway from Thursday won't be the rate decision, but rather what clues the tenor of the accompanying statement gives as to when rates might be cut again,' Jeremy Batstone-Carr, European strategist at Raymond James Investment Services, said.
'The next meeting concludes on 7th August; assuming anticipated trends in inflation, wages and economic activity remain on track, a further 0.25% cut will be very much on the cards.'
British midcaps fell 0.2%. A stand-out was construction company Morgan Sindall which jumped 14.6% after saying it expects annual pre-tax profit to be significantly ahead of previous expectations.
Hashtags
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
Karachi fourth worst city in global livability index 2025
Karachi has been ranked as the fourth least liveable city in the world, according to the Livability Index 2025 released on Tuesday by the Economist Intelligence Unit (EIU), a research arm of The Economist Group. Placed 170th out of 173 cities assessed globally, Karachi was the only Pakistani city included in the index. It ranked just above Dhaka (Bangladesh), Tripoli (Libya), and Damascus (Syria), which retained the bottom position. The EIU's liveability index evaluates cities across five categories — stability, healthcare, culture and environment, education, and infrastructure — using more than 30 indicators to arrive at the final scores. Copenhagen was named the most liveable city in the world, earning near-perfect scores in stability, education, and infrastructure, with an overall score of 98 out of 100. Read more: Karachi ranks among least liveable cities in global survey once again It replaced last year's leader, Vienna, which dropped to second place due to two foiled terrorist attacks that impacted its stability score. Zurich tied with Vienna in second place, while Geneva rounded out the top five, underlining the dominance of Western European cities in the index. Melbourne, with a score of 97, was the only non-European city to break into the top five, ranking fourth. Other Southern Hemisphere cities featured prominently in the top ten, including Sydney (6th), Osaka (7th), Auckland (8th), and Adelaide (9th). Vancouver (10th) was North America's only representative in the top tier. Several cities in the UK — including London, Manchester and Edinburgh — saw declines in their positions, attributed to widespread civil unrest and rising homelessness. London and New York were ranked 54th and 69th respectively, with congestion, crime and terrorism threats weighing down their scores. Canadian cities also dropped in the rankings, largely due to lower healthcare scores across the board. The report noted that the Middle East showed the most significant improvement, driven by enhancements in healthcare and education in Saudi Arabia and the UAE. In South Asia, most cities ranked poorly, with the EIU citing high pollution levels, extreme temperatures, and regional tensions. Ongoing military confrontations along the Kashmir border contributed to lower stability scores for several Indian cities. Damascus remained at the bottom of the list. However, the EIU suggested the situation may improve in future editions, following the ousting of Bashar al-Assad in December and the subsequent easing of US sanctions. The report concluded that while inflationary pressures had somewhat eased, rising geopolitical tensions posed new risks to urban stability and overall quality of life across many regions.
1724319076-0%2FUntitled-design-(5)1724319076-0.jpg&w=3840&q=100)
Express Tribune
3 hours ago
- Express Tribune
Imran postpones protest movement amid regional tensions
Listen to article Pakistan Tehreek-i-Insaf (PTI) founder Imran Khan has decided to postpone the party's planned protest movement for two weeks, citing prevailing regional tensions and the evolving international situation amid the ongoing Iran-Israel conflict. The announcement was made by PTI leader Noreen Khanum following her meeting with the incarcerated former prime minister at Adiala Jail on Tuesday, Express News reported. Speaking to reporters outside the prison, she said Khan had taken the decision keeping in view the 'sensitive regional circumstances' and ongoing developments in the Middle East. 'We are awaiting policy statements from the prime minister, president and field marshal before proceeding further,' Khanum stated. She added that although Khan had not met anyone over the past week, he remained aware of global affairs and believed the situation would have direct consequences for Pakistan. 'The PTI founder has called for national unity during this critical time,' she said. Read More: Israel-Iran conflict enters fifth day with ongoing missile strikes Commenting on the federal budget, Khan reportedly described it as one tailored for the elite. 'The burden of taxation is being placed entirely on the salaried class while the poor continue to suffer. Poverty is rising and the economic situation is worsening,' she quoted him as saying. Khanum further said that more than 3.3 million educated individuals had left Pakistan over the past three years, each taking an estimated $30,000 with them — contributing to a significant outflow of foreign exchange. Regarding the KhyberPakhtunkhwa (K-P) budget, she said it would be finalised only after consultations with key party figures. 'Ali Amin Gandapur, Taimur Jhagra, Muzzammil Aslam and Shibli Faraz will meet Khan before the budget is passed,' she added. Speaking on the occasion, PTI leader Uzma Khan said Khan had urged the nation to focus on unity and remain steadfast while clarifying that Gandapur had not distanced himself from the protest movement, and that PTI supporters globally would continue to raise their voices. 'Imran Khan has not withdrawn support for the protest — in fact, he laughed at the suggestion,' she said, adding that Khan's position on the situation in Gaza was already well known. Uzma also criticised political leaders for remaining silent during periods of regional conflict. 'Zardari, Nawaz Sharif and Maryam Nawaz did not speak out during the India-Pakistan war. Now, the current rulers — with a mandate of just 17 seats — must clarify their position. That is their responsibility,' she said. 'We are also waiting to hear from the real policymakers,' she added.
Business Recorder
4 hours ago
- Business Recorder
UK stocks fall as Middle East conflict hits risk appetite
British equities ended lower in a broad-based selloff on Tuesday, with hostilities between Iran and Israel weighing on market sentiment and focus on a slate of rate decisions from central banks including the Bank of England this week. The blue-chip FTSE 100 index closed 0.4% lower, with more than 70% of its components clocking losses - though the index was still just a whisker away from its all-time highs. As the Israel-Iran conflict entered its fifth day, U.S. President Donald Trump indicated he may send senior American officials to meet with the Islamic Republic. Trump also left early from the Group of Seven summit in Canada, where he signed a trade deal with British Prime Minister Keir Starmer. Heavyweight banks bore the brunt of the selling pressure, with top lenders HSBC, Standard Chartered and Barclays each down more than 1%. Travel and leisure stocks also saw heavy selling with airline operators Wizz Air and British Airways owner IAG down 7.5% and 4.4%, respectively. Heavyweight energy gained 1.5% with oil prices ticking higher due to tensions in the Middle East. BP and Shell added more than 1% each as the top gainers on the blue-chip. FTSE 100 pulls back from record as ME tensions escalate Looking ahead, the spotlight this week will be on central bank meetings, with the Bank of England set to meet on Thursday and the U.S. Federal Reserve's verdict on Wednesday. Both are expected to keep rates steady. 'The key takeaway from Thursday won't be the rate decision, but rather what clues the tenor of the accompanying statement gives as to when rates might be cut again,' Jeremy Batstone-Carr, European strategist at Raymond James Investment Services, said. 'The next meeting concludes on 7th August; assuming anticipated trends in inflation, wages and economic activity remain on track, a further 0.25% cut will be very much on the cards.' British midcaps fell 0.2%. A stand-out was construction company Morgan Sindall which jumped 14.6% after saying it expects annual pre-tax profit to be significantly ahead of previous expectations.
