The UK stock market has been edged lower ahead of key vote polling as it’s pressured by a firmer pound and a slide in oil majors Shell and BP while Britons head to the polls in local and regional elections.
London’s benchmark stock index, FTSE 100, fell on Thursday as heavyweight oil companies including Shell and BP declined amid lower crude prices and a stronger pound.
As reported by Reuters, the blue-chip FTSE 100 index fell to 10,380 points by 1112 GMT, while the midcap FTSE 250 gained 0.5%.
The elections could deal a huge blow to Prime Minister Keir Starmer’s Labour Party, renewing skepticism about his ability to govern. They could also signal the beginning of the end of Britain’s traditional two-party system.
A recent survey showed that in April, British builders saw one of the biggest month-on-month jumps in cost inflation.
The pound rose against the dollar on hopes that an end to the U.S.-Iran conflict was near, pressuring multinational firms that earn most of their revenue 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 dropped 2% despite reporting its highest quarterly profit in two years and raising its dividend. Rival BP fell 1.4%, as oil’s slide below $100 weighed on its stock.
Shares of BAE Systems were down 3%, among the biggest drags on the FTSE 100, after the defense firm maintained its full-year outlook.
InterContinental Hotels Group rose 2.7% after topping quarterly room revenue estimates as its U.S. business rebounded.
Autotrader Group gained 4% after a source told Reuters that activist investor Palliser Capital built up to a 2% stake in the company.
Helios Towers jumped 16%, lifting the mid-cap index, after the mobile tower operator raised its annual profit forecast.
