London’s FTSE 100 retreated 0.8% on Thursday, ending a six-session advance as energy majors led declines following a drop in oil prices driven by easing geopolitical tensions in the Middle East.
The blue-chip index closed at 10,792.54, down 85.58 points, after earlier touching multi-week highs. The pullback contrasted with gains in other major European and U.S. benchmarks, with the DAX up 0.27% and the S&P 500 rising 0.56%.
Energy stocks bore the brunt of the decline, with Shell and BP each falling more than 1%. Shell slipped 1.67%, while BP dropped 1.40% as crude prices softened. Brent crude fell 0.6% to $87.48 per barrel, paring earlier losses after diplomatic talks between Qatari and Iranian officials raised expectations of a potential agreement to reopen the Strait of Hormuz to commercial transit. WTI crude declined 2.12% to $83.97.
Prudential also lagged, down 1.3%, despite reporting an 8% increase in first-half new business profit to $1.38 billion. The insurer’s shares had earlier been supported by the positive update. Lloyds Banking fell 2.15%, while Vodafone, Barclays, and HSBC each declined between 0.68% and 1.39%.
Industrial miners provided some support, with zinc prices extending a seven-day winning streak and copper futures holding near $6.58 per pound. British vehicle production in July dropped 11.6% year-on-year to 63,655 units, according to the Society of Motor Manufacturers and Traders, reflecting a 15.9% decline in exports and earlier-than-usual summer plant shutdowns.
Investors remained focused on global monetary policy ahead of Federal Reserve Chair Kevin Warsh’s keynote address at the Jackson Hole Economic Policy Symposium, where remarks on borrowing costs and liquidity conditions were expected to influence market sentiment.
