The FTSE 100 opened 24.70 lower to 10,861.46 amid a sharp decline in global crude prices that dragged heavyweight energy producers, offsetting gains across homebuilders and industrial miners. Brent crude futures fell 2.34% to $86.51 per barrel. US West Texas Intermediate (WTI) declined 2.49% to $80.31 per barrel.
On the upside, Antofagasta climbed 1.92% to 4,086p. Airtel Africa advanced 1.67% to 340.20p, while InterContinental Hotels Group gained 1.44% to 165.30p. Melrose Industries rose 1.37% to 517.20p, International Consolidated Airlines Group added 1.34% to 447.80p, and Halma increased 1.29% to 3,622p.
On the downside, Sage Group fell 3.03% to 1,071p. 3i Group dropped 0.93% to 2,877p, while London Stock Exchange Group slipped 0.73% to 8,734p, AstraZeneca lost 0.71% to 12,388p, and Next edged 0.26% lower to 15,595p.
BP fell 2.3%, and Shell declined 1.1% after Brent crude dropped 2.2% to USD 86.60 a barrel. Oil extended its decline after Washington’s threatened “economic D-Day” sanctions against Iran proved less aggressive than feared and stopped short of immediately penalising Tehran’s trading partners.
Reports that Iran and Oman discussed a temporary maritime corridor through the Strait of Hormuz also reduced concerns about further disruption to oil shipments.
The UK could face another spike in inflation after Ofgem confirmed the energy price cap was set to rise to a three-year high.
The regulator stated the default tariff for consumers across the UK would increase by 4% to £1,723 for the last quarter of the year. It follows a sharp 13% increase in the cap for the previous quarter.
Ofgem said the rise was driven by the continued conflict in the Middle East. The watchdog said the extreme weather across Britain and Europe had also had an impact, driving up power demand and restricting generation.
Applied Nutrition upgraded its revenue and earnings expectations after “sustained demand” across its key markets.
The protein shake maker said it expects to beat forecasts for adjusted earnings, which have grown by 40% year-on-year to £43.3 million. Revenue is “ahead of market expectations,” the group said, having jumped 50% to £160 million.
However, Applied Nutrition said its margins are expected to fall slightly amid higher whey protein costs.
Also Read: Stock Market Update: Sensex Up By 236 Points, Nifty Opens Flat Amid Positive Global Cues
In US, the S&P 500 rose slightly, as Treasury yields fell for a second day, the index gained 0.32% to close at 7,677.28, while the Nasdaq Composite advanced 0.66%. The Dow Jones Industrial Average was up 160.24 points, or 0.3%.
In Asia on Wednesday, Tokyo's Nikkei 225 gained 0.62% to 66,262.16, while China’s Shanghai Composite gained 0.59%. Hong Kong’s Hang Seng advanced 0.70%, and South Korea’s Kospi surged 0.97%. In India, the Nifty 50 declined 0.21%, while the Sensex rose 0.011%.
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