The FTSE 100 fell as concerns about the global economy weighed on mining stocks. Crude prices climbed again amid uncertainty around negotiations involving Iran, renewing worries about energy costs and inflation. Mining firms dropped as investors feared slowing demand would reduce commodity prices and industrial activity, with the sector sensitive to Chinese growth and global manufacturing. Airlines also faced pressure because higher oil prices could raise fuel costs while consumers remained cautious. easyJet shares declined after warnings of elevated energy prices and weaker customer confidence, with travellers delaying bookings and cutting discretionary spending. Investors also reacted to expectations that sustained fuel price increases could lift operating costs during the summer travel period. Defence technology company QinetiQ rose on improving performance and confidence in its turnaround strategy, benefiting from geopolitical instability and higher military spending.
"London’s blue-chip index struggled for direction after crude prices climbed again amid lingering uncertainty over negotiations involving Iran, reigniting concerns about energy costs and inflationary pressures. Mining firms were among the biggest fallers as investors worried that slowing global demand would hit commodity prices and industrial activity. The sector, which is heavily exposed to Chinese growth and global manufacturing demand, dragged the wider market lower amid growing unease about the world economy’s outlook."
"At the same time, airlines came under renewed strain as higher oil prices threatened to push up fuel costs just as consumers remain cautious about spending. Shares in easyJet fell after the airline warned that elevated energy prices and weaker customer confidence were weighing on performance. The carrier said travellers were increasingly delaying bookings and cutting discretionary spending as households continue to grapple with the lingering effects of the cost-of-living squeeze."
"Investors also reacted nervously to warnings that sustained increases in fuel prices could significantly raise operating costs across the aviation sector during the key summer travel period. Oil prices have swung sharply in recent weeks as markets attempt to gauge the risk of disruption to Middle Eastern supply routes and the implications of ongoing geopolitical tensions. However, not all sectors were under pressure."
"Defence technology company QinetiQ jumped around 8pc in early trading after investors welcomed signs of improving performance and confidence in its turnaround strategy. The rally highlights how defence and security firms continue to benefit from heightened geopolitical instability and increased military spending across Europe and beyond."
Read at London Business News | Londonlovesbusiness.com
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