FTSE 100 muted as energy gains offset broader drag; Iran, Xi visit watched
EWU•FTSE 100 little changed as oil rebounds
Sept. 23 (Reuters) - London's FTSE 100 was muted on Wednesday as oil prices rebounded to over $100 a barrel, reviving inflation worries and pushing up global bond yields as the focus remained on any developments around the Middle East conflict.
The blue-chip FTSE 100 index .FTSE was little changed at 10,705.26 points, while the midcap FTSE 250 .FTMC slipped 0.7%. The latter marked its steepest one-day fall in nearly two weeks.
Company updates and UK economic backdrop
- Market attention was on Washington as Chinese President Xi Jinping begins a three-day visit, with trade, technology and Tehran tensions in focus.
- Among individual stocks, JD Sports JD.L slid 5.7% after the sports and fashion retailer reported around a 20% drop in first-half profit, becoming the top loser on the benchmark index.
- Two sources told Reuters that Pollen Street POLNP.L had explored options, including a potential sale to scale up its asset management business. The private capital firm topped the mid-cap index with a 12.5% rise.
- A survey showed growth in British business activity cooled this month and inflation pressures built, an awkward backdrop for finance minister John Healey ahead of his first budget next month.
Energy gains offset weakness in other sectors
- Oil prices rose after five straight sessions of losses, surpassing $100 a barrel. Energy stocks .FTNMX601010 climbed 2.2% with oil majors BP BP.L and Shell SHEL.L rising 2.7% and about 2% respectively. O/R
- Yields on global government bonds soared, with the 10-year US Treasury US10YT=RR note yield up at 5.083%, its highest since 2007. Yield on the benchmark British gilt rose to 5.353%.
