London’s main equity index retreated on Thursday, ending a six-session winning streak as a 0.5% drop in Brent crude weighed on integrated energy producers and broader market sentiment.
The FTSE 100 fell 0.5%, interrupting its longest consecutive advance since late May. Brent crude, the global benchmark, slipped to near $87.40 per barrel, extending a multi-day decline that pressured integrated energy names listed in London.
Among individual movers, Prudential declined 1.2% despite reporting an 8% year-on-year increase in first-half new business profit to $1.38 billion. Shell and BP also retreated as falling crude prices eroded valuations for the sector’s heavyweights.
Elsewhere in the UK economy, British vehicle production declined 11.6% year-on-year in July to 63,655 units, according to the Society of Motor Manufacturers and Traders. Exports fell 15.9% during the same period, with industry sources attributing the drop to earlier-than-usual summer maintenance shutdowns at major automakers.
Oil markets remained sensitive to geopolitical signals, with traders citing ongoing diplomatic talks between Qatari and Iranian officials in Tehran as a potential catalyst for reopening commercial transit through the Strait of Hormuz. Industrial metals offered some support, with zinc extending a seventh consecutive daily gain and copper markets recovering modestly.
City of London operators maintained focus on central bank policy signals, with Federal Reserve Chairman Kevin Warsh scheduled to deliver his inaugural speech at the Jackson Hole Economic Policy Symposium on Friday. Market participants awaited clarity on global credit conditions and systemic liquidity ahead of the autumn trading season.
