As it happened: FTSE 100 waivers; oil nears $100 on new Hormuz sanctions
Welcome back to City AM’s FTSE 100 liveblog.
The UK’s blue-chip index slipped on Tuesday morning, as investors weighed fresh tensions in the Middle East which boosted London’s oil majors but dragged on other members.
Oil prices continued to march upwards. Brent crude – the international benchmark for oil prices – gained another 1.5 per cent as it neared $100 per barrel.
Traffic through the Strait of Hormuz slowed further at the start of this week after Iran set out plans to tighten its control over the vital shipping lane. Tehran has announced plans for a new “restricted zone” outside the Strait, which will hike sanctions on ships attempting to use the waterway.
Dan Coatsworth, head of markets at AJ Bell, said that rising oil prices, newly-steadying bond yields and record copper prices are coming together to confuse investors.
He said: “Record copper prices add to a picture which is becoming as complicated for investors as an M.C. Escher work, as the threat of US tariffs on refined copper adds to declining production and rampant demand linked to AI, power grids and electric vehicles.
“In London, miners and oil and gas companies were in demand with investors while banks and housebuilders were among those dragging on UK stocks’ performance.”
Chancellor John Healey gave his first major speech as Chancellor yesterday, saying: “The prime minister and I are in lockstep in our commitment to meeting the fiscal rules at the upcoming budget, to balancing the books with a buffer to protect against uncertainty.
Pressure is building on the government to slash the rising cost burden facing businesses at next week’s Budget. Retail sales growth slipped in August, fresh figures have revealed, as the heatwave boost enjoyed by retailers cooled.
We’ll be bringing you the latest market updates and analysis.
This morning’s top stories:
- Unleash growth or you’ll have to hike taxes even higher, FTSE 100 boss warns Healey
- Spending hits 13-month high as Brits splurge on entertainment, Barclays says
- Labour takes narrow lead over Reform as donation row wounds Farage
- UK at risk of £290bn finance industry ‘being governed overseas’
- How the NHS backlog fuelled a private equity gold rush in UK health market