Britain’s stock market fell ahead of the key vote as it was weighed down by the pound’s strength and declines in oil majors Shell and BP as Britain heads to local and regional elections.
London’s benchmark stock index, the FTSE 100, fell on Thursday as heavyweight oil companies including Shell and BP declined amid lower crude prices and a stronger pound.
As reported reutersThe blue-chip FTSE 100 index fell to 10,380 points by 1112 GMT, while the midcap FTSE 250 rose 0.5%.
The elections could deal a major blow to Prime Minister Keir Starmer’s Labor Party, rekindling doubts over his ability to govern. They may also signal the beginning of the end of Britain’s traditional two-party system.
A recent survey showed that in April, British builders saw the biggest month-on-month jump in cost inflation.
The pound rose against the dollar on hopes that an end to the US-Iran conflict was near, putting pressure on multinationals that earn most of their revenues overseas.
With earnings season in full swing, markets are assessing consumer demand and any economic impact from the Middle East conflict.
Shares of oil major Shell fell 2% despite reporting the highest quarterly profit in two years and raising its dividend. Rival BP fell 1.4% as oil’s slide below $100 hurt its stock.
BAE Systems shares fell 3%, among the biggest falls on the FTSE 100, after the defense firm maintained its full-year outlook.
InterContinental Hotels Group’s quarterly room revenue rose 2.7% after topping estimates due to a surge in its U.S. business.
AutoTrader Group gained 4% after activist investor Palliser Capital built a 2% stake in the company, a source told Reuters.
Helios Towers jumped 16%, lifting the mid-cap index, after the mobile tower operator raised its annual profit forecast.
