April 23 (Reuters) - Britain's FTSE 100 fell on Thursday, as higher oil prices and fading prospects of renewed U.S.-Iran peace negotiations weighed on the broader market, while investors parsed
London's FTSE 100 closes lower as investors monitor Iran conflict, earnings
FTSE 100 Performance and Market Drivers
April 23 (Reuters) - Britain's FTSE 100 closed a little lower on Thursday, with declines in heavyweight financials offset by some stocks after their corporate updates, while markets assessed fading prospects of renewed U.S.-Iran peace negotiations and higher oil prices.
The blue-chip FTSE 100 index closed 0.2% lower in its fourth session of declines, while the midcap FTSE 250 fell 0.9%.
Commodities and Geopolitical Tensions
• Brent crude futures rose beyond $100 a barrel, as Iran tightened its grip on the Strait of Hormuz and said it would not reopen the waterway until the U.S. lifted its naval blockade.
Impact on Sectors
• The travel and leisure sector was buoyed by a 10% gain in Domino's Pizza after it recorded a first-quarter like-for-like sales growth of 4.5%. Pressured airlines limited gains.
• Heavyweight banks Barclays and HSBC fell 1.5% and 0.4%, respectively, the biggest drags on the index.
• Among miners, Fresnillo declined 6.4%, tracking precious and base metals.
• Industrial miners sector closed 0.9% higher on the back of a 4.1% gain in Anglo American, after a report showed its Australian coal business had at least three suitors.
Economic Indicators and Inflation
• The share of British firms reporting higher costs jumped to a record this month, signalling high input costs and rising inflation as fallout from the Iran war weighs on the economy, a survey showed.
• Traders are now pricing in 70% probability of the Bank of England hiking rates in June, up from 40% last week, according to LSEG data.
Weekly Performance and Corporate Updates
• The FTSE 100 is down 2% for the week so far and is on track to erase nearly all gains sparked by hopes of the U.S.–Iran ceasefire, which was announced earlier this month.
• Among other stocks, supermarket group Sainsbury fell 3.4% after it warned that the Iran war could cloud its outlook, mirroring concerns raised by peer Tesco.
• WH Smith plunged 9.2% to the bottom of the FTSE 250 after the travel retailer cut its annual profit forecast and suspended its dividend.
Reporting Credits
(Reporting by Utkarsh Tushar Hathi and Purvi Agarwal in Bengaluru; Editing by Diti Pujara and Alex Richardson)
