London's FTSE indexes ease as Iran conflict rattles markets
EWU•FTSE indexes edge lower as tensions rise
July 14 (Reuters) - UK's FTSE indexes edged lower on Tuesday on escalating U.S.-Iran tensions, while losses in financial and travel stocks outweighed gains in energy shares from oil major BP's comment that it benefited from the surge in oil prices earlier this year.
The blue-chip FTSE 100 index .FTSE fell 0.3% to 10,461.14 points by 1024 GMT, while the midcap FTSE 250 .FTMC slipped 0.7%.
Investors watch U.S. data and company updates
- Investors await the U.S. inflation report and commentary from Federal Reserve Chair Kevin Warsh that could offer insights into the health of the world's largest economy.
- Among individual stocks, Ashmore ASHM.L fell 1.8% after the British asset manager reported quarterly net inflows ahead of expectations, with investors continuing to allocate capital to higher-yielding emerging market assets despite geopolitical uncertainty.
- Debenhams Group DEBS.L rose 3.1% after the online retailer said positive trading momentum continued through June and July, supported by improving sales margins and lower customer returns as its turnaround strategy gained traction.
Travel, banks and energy stocks move in opposite directions
- The U.S. carried out strikes against Iran for a third straight night, while President Donald Trump announced a blockade of Iranian shipping and a 20% fee on cargo transiting the Strait of Hormuz, sending Brent crude prices LCOc1 up 3% to around $85 a barrel. O/R
- Travel and leisure stocks .FTNMX405010 led sectoral losses, down 2.4%, with InterContinental Hotels Group IHG.L falling 3.7% to the bottom of the FTSE 100 index.
- Banks .FTNMX301010 also weighed on the index as investors awaited earnings from big U.S. banks later in the day.
