FTSE 100 holds steady as energy stocks rise and banks retreat

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FTSE 100 holds steady as energy stocks rise

Highlights

FTSE 100 rises 0.04% to 10,576.97 as energy stocks gain 1.7% on oil supply concerns, while banks retreat between 1% and 1.6%.
Burberry shares drop over 5.6% and personal goods index declines 4.3% after the company warns Middle East conflict is hurting tourist spending in Europe.
GSK falls 3.8% after halting experimental refractory chronic cough treatment following late-stage trial failure, while BP and ConocoPhillips rise on news of new Iraq investment plans.

Market moves and corporate developments

As reported by Reuters, the FTSE 100 rises 0.04% to 10,576.97 by 1043 GMT, while the FTSE 250 slips 0.4% as sector moves pull the market in opposite directions.

Energy stocks gain 1.7% as oil prices edge higher on concerns over supply disruptions after the U.S. and Iran step up attacks across the Gulf, increasing fears over exports through the Strait of Hormuz and the Red Sea. Utilities also climb 2%, making them the strongest sectoral gainers.

Banks move lower and weigh on the benchmark, with Barclays, Lloyds Banking Group and Standard Chartered down between 1% and 1.6%. Personal goods drop 4.3% after Burberry warns that the conflict in the Middle East is hurting tourist spending in Europe, sending the luxury group's shares down more than 5.6% despite strong April-June sales growth in the U.S. and China.

GSK falls 3.8% after saying it will halt development of its experimental treatment for refractory chronic cough because the therapy fails a late-stage trial and misses key efficacy goals across multiple dosages.

Political backdrop and regional energy investment

Britain's political landscape is also in focus, with Andy Burnham, known as the 'King of the North', set to become leader of the governing Labour Party, the final step before becoming the country's seventh prime minister in a decade. He is taking office on a pledge to counter the rise of the populist Reform UK.

Among individual stocks, BP rises 1% and ConocoPhillips adds 1.2% after CNBC reports that the companies are set to announce billions of dollars in new investments in Iraq. The planned spending underscores efforts by Washington to strengthen Iraq's energy sector and reduce reliance on export routes seen as vulnerable to disruption from regional conflict.

Our earlier coverage of Andy Burnham’s path to the Labour leadership explained how his allies used a year-long internal strategy to secure his takeover ahead of the party’s conference timetable and without a contested race. It also highlighted that while Burnham is expected to move quickly with an early policy rollout, some Labour MPs remain unsure about the clarity and substance of his governing agenda once in office.

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