FTSE 100 holds steady as mining losses offset energy gains before ECB decision

Traders Union
All News
Financial News
FTSE 100 steady before ECB

Highlights

The FTSE 100 slips 0.04% to 10,712.83 by 1050 GMT as energy gains on rising oil prices offset a 2.5% drop in precious metal miners.
EasyJet jumps 5.5% despite a 70% third-quarter profit slump, beating analyst estimates amid war-induced fuel volatility and cautious traveler demand.
UK Prime Minister Andy Burnham announces a 20% business rates cut for pubs, clubs, and live music venues effective April as part of broader business support measures.

Market drivers and policy focus

As reported by Reuters, the FTSE 100 is down 0.04% at 10,712.83 points by 1050 GMT, while the FTSE 250 slips 0.3% as traders balance sector swings with central bank expectations.

Energy stocks lead gains after oil prices rise when Yemen's Houthis say they struck two Saudi oil tankers, increasing concern that disruption to global oil supplies could spread beyond the Strait of Hormuz.

Precious metal miners limit the broader index, falling 2.5% as lower gold prices weigh on the sector. The decline comes as investors worry that inflation pressures could prompt the U.S. Federal Reserve to raise interest rates later this year.

The ECB's policy decision remains a key focus for markets. The central bank is widely expected to leave interest rates unchanged, but investors are watching for signals that another rate hike in September remains possible.

Stock moves and UK business measures

Among individual companies, easyJet rises 5.5% even after reporting that third-quarter profit slumped 70%. The airline says the Iran war drove fuel price volatility and made travellers more cautious, though its earnings still beat analysts' estimates and it points to somewhat clearer conditions heading into the peak summer period.

Jupiter Fund Management falls 2.6% despite posting a 67% jump in first-half pre-tax profit. Howden Joinery adds 1.6% after maintaining its annual outlook and saying it has hedged fuel costs through the end of the year.

In the wider UK business backdrop, Prime Minister Andy Burnham says business rates for pubs, clubs and live music venues will be cut by 20% from April. The measure is his third announcement in three days aimed at supporting households and businesses.

EasyJet’s quarterly profit slump and the pressure on European budget airlines were the focus of our earlier coverage, as higher costs and weaker consumer confidence tied to Middle East tensions weighed on results. We also noted that investors were watching takeover-related uncertainty around EasyJet, while Ryanair reported a similar profit decline, underscoring broader sector strain heading into the peak summer period.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.