- FTSE 100 down 36 points at 10,634
- FTSE 250 down 197 points at 23,912
- Wall Street opens lower as oil tops $105
- Gold falls $54 to $4,361 an ounce
3:00pm: Market sell-off continues
The FTSE 100 has weakened progressively through the session, with a brief recovery around 1pm before a sharper afternoon sell-off.
London blue chip index was down 36 points at 10,634, as rising oil prices and inflation concerns continued to weigh on London shares.
The FTSE 250 was down 196.52 points at 23,912.14, from its previous close of 24,108.66.
It has traded between 23,911.52 and 24,143.21 during the session, leaving it close to the day's low.
Wall Street opened lower on Thursday after US producer prices for August came in above forecasts, strengthening expectations that the Federal Reserve could raise interest rates later this month, while escalating tensions in the Middle East pushed oil prices above $100 a barrel.
The Dow Jones Industrial Average fell 88.8 points, or 0.17%, to 52,291.85 at the open.
The S&P 500 dropped 41.6 points, or 0.55%, to 7,594.74.
The Nasdaq Composite fell 232.3 points, or 0.88%, to 26,021.05, with technology stocks bearing the brunt of the selling.
Nasdaq said on Thursday that its venture capital arm will invest $100 million in Payward, the parent company of cryptocurrency exchange Kraken, as the two companies expand their partnership to develop infrastructure for trading tokenised shares, Reuters said.
Brent crude futures jumped 3.92% to $105.18 a barrel, extending the oil rally as escalating attacks on tankers in the Middle East heightened fears of further supply disruptions.
Gold spot fell 1.23% to $4,360.51 an ounce, down $54.38, as higher bond yields and a firmer dollar weighed on the precious metal.
Rising yields were increasing the opportunity cost of holding non-yielding gold.
US 10-year Treasury yields rose 3 basis points to 4.830%, while UK 10-year gilt yields climbed 7.6 basis points to 5.343%.
2:00pm: Footsie stays in the red
FTSE 100 falls 73 points to 10,596.88 as the European Central Bank (ECB) raises rates and oil stays above $100.
The ECB raised its deposit rate to 2.5% on Thursday, its second increase this year.
Eruopean market reaction was relatively muted following the deposit rate hike.
UBS: Persimmon (Persimmon PLC (LSE:PSN)) ‘buy’, £13.25 target; Barratt Redrow (Barratt Redrow PLC (LSE:BTRW)) ‘buy’, £3.70 target
Peel Hunt: Boohoo (Boohoo Group PLC (AIM:DEBS)) upgraded to Add, target raised to 30p from 25p after “transformational” disposal
Panmure Liberum: Currys (Currys PLC (LSE:CURY)) ‘buy’, 200p target on strong start and high gearing
Jefferies: Fevertree (Fevertree Drinks (AIM:FEVR)) ‘buy’, 1,100p target, citing US momentum and earnings prospects
Deutsche Bank: AstraZeneca (AstraZeneca PLC (LSE:AZN, NASDAQ:AZN), AstraZeneca PLC (LSE:AZN, NASDAQ:AZN)) praised tozorakimab lung data but stayed bearish on shares
1:00pm: Markets remain cautious
The FTSE 100 was down 43 points, or 0.40%, at 10,627, remaining under pressure as oil prices above $100 a barrel continued to fuel inflation concerns and weigh on sentiment.
It has had a broadly negative session so far, with 55% of its constituents trading lower compared with 38% higher, indicating that selling pressure outweighed gains across the index.
European shares traded unevenly on Thursday, with elevated government bond yields keeping pressure on equities as investors positioned ahead of the European Central Bank’s latest interest-rate decision.
Whitbread PLC (LSE:WTB) shares rose 35p, or 1.51%, to 2,355p, having traded between 2,339p and 2,383p during the session.
BP shares rose 5p, or 0.90%, as higher oil prices continued to support energy stocks.
Genus PLC (LSE:GNS) shares fell 122p, or 5.46%, to 2,112p, having traded as high as 2,362p and as low as 2,016p during the session. This despite a robust set of preliminary results for the year to 30 June 2026.
US futures were mixed, with Dow and S&P 500 contracts edging higher while Nasdaq 100 futures fell 0.25%, as rising oil prices and elevated Treasury yields kept pressure on technology stocks.
Copper futures were broadly flat at around $6.85 a pound, holding close to record highs.
12.00: Oil keeps inflation fears alive
The FTSE 100 remained under pressure around midday, down 43 points, as oil prices above $100 a barrel revived inflation concerns and pushed government bond yields higher.
Investors were also looking ahead to Thursday’s expected European Central Bank rate hike and fresh US inflation data, with both likely to influence expectations for interest rates.
11.00 am: Small caps drift lower
The FTSE SmallCap index fell 6 points to 8,080, having touched a session low of 8,077.
Small-cap stocks with strong newflow include:
MP Evans Group PLC (AIM:MPE): Acquired additional planted and plantable land at Kota Bangun for US$2 million.
Sunda Energy PLC (AIM:SNDA, FRA:GHA0) progressed its New Zealand acquisition and Philippines studies amid Timor-Leste PSC termination risk.
Futura Medical PLC (AIM:FUM, OTC:FAMDF, FRA:GYX) Non-executive director Roy Davis will leave the board on 20 October.
Ilika PLC (AIM:IKA, OTCQX:ILIKF, FRA:I8A): Completed its PRIMED programme to optimise Goliath 10Ah solid-state battery prototypes.
10.00 am: Higher crude lifts oil majors
Oil producers provided support as the FTSE 100 fell 34 points to 10,636 and the FTSE 250 lost 97 points.
Harbour Energy climbed 3%, while BP gained 1% and Shell added 1% as Brent crude remained above $100. Higher prices improve revenue expectations for producers, but are weighing on the broader market by intensifying inflation and interest-rate concerns.
Energean moved against the sector, falling 4% as investors took profits following Wednesday’s 8% post-results rally. Its first-half production was disrupted by a 41-day shutdown in Israel, although output subsequently recovered and annual guidance was maintained.
9.00 am: AB Foods weighs on subdued London market
The FTSE 100 turned modestly lower, slipping 9 points to 10,661, while the FTSE 250 fell 18 points and AIM edged higher.
Associated British Foods was the dominant story, tumbling nearly 10% after reporting a 3% decline in Primark’s fourth-quarter like-for-like sales.
Continental European sales remained challenging, while the company forecast a £70 million to £170 million adjusted operating loss for Sugar in 2027.
Computacenter fell 3%, and M&G lost 2%. Compass Group gained 2%, followed by Aberdeen and Whitbread.
8.15 am: London stabilises after four-session decline
The FTSE 100 opened 10 points lower at 10,660 before recovering to stand 2 points higher at 10,672.
BP led the early risers with a 0.6% gain as Brent crude remained above $100, cushioning the index against the weaker global backdrop.
Associated British Foods was the principal blue-chip corporate update. The company's shares slumped more than 10% to 1,808.5p in early trading after weaker Primark sales in continental Europe and a deteriorating outlook for its Sugar division overshadowed plans to launch home delivery in Great Britain.
Meanwhile, Sterling traded slightly higher at around $1.355, limiting the benefit of overseas earnings for internationally focused companies.
7.00 am: Oil and inflation fears keep London cautious
The FTSE 100 is expected to open broadly unchanged on Thursday as support from energy companies offsets a weak global lead and renewed inflation concerns.
September FTSE 100 futures were trading around 10,669 before the opening bell, little changed from their previous settlement. London’s blue-chip index closed Wednesday down 142 points, or 1.3%, at 10,670.06 as oil’s move above $100 unsettled markets.
Brent crude held above $100 after gaining more than 3% on Wednesday, with the latest price near 101.84 a barrel. West Texas Intermediate traded around 96.06.
Prices remain elevated after escalating US-Iran attacks on shipping intensified concerns about supplies passing through the Strait of Hormuz. Brent has risen nearly 30% from its early-August lows.
The advance could provide further support for BP and Shell, although higher energy costs are increasing pressure on airlines, retailers, manufacturers and other fuel-intensive businesses.
The wider concern is that expensive oil will feed through to consumer prices and force central banks to keep interest rates higher for longer.
Wall Street declined for a third consecutive session on Wednesday. The Dow Jones Industrial Average fell 405 points, or 0.8%, to 52,380.66, while the S&P 500 lost 0.5% and the Nasdaq Composite declined 0.6%.
Energy shares outperformed, but retail and other consumer-facing stocks weakened. The Russell 2000 dropped 1.3%, reflecting concerns about the greater exposure of smaller companies to higher borrowing and operating costs.
Asian markets followed Wall Street lower. Australia’s S&P/ASX 200 fell around 1.4%, Japan’s Nikkei 225 declined 0.6% and South Korea’s Kospi slipped approximately 0.2% during morning trading.
Gold was steady near $4,399 an ounce ahead of key US inflation data. Copper also remained close to record territory after three-month prices reached US$14,728 a tonne this week, supported by tight supplies, tariff uncertainty and demand from power grids and artificial-intelligence infrastructure.
Bitcoin traded near $78,500 after slipping around 0.5%.
Sterling edged higher as traders increased expectations that the Bank of England may need to tighten policy further in response to energy-driven inflation. A firmer pound could limit the FTSE 100 by reducing the sterling value of overseas earnings.
The European Central Bank’s interest-rate decision will be closely watched amid expectations of a quarter-point increase. In the US, August producer-price figures and weekly jobless claims are due at 1.30 pm BST, with consumer inflation following on Friday.
On the corporate calendar, Associated British Foods and Currys are scheduled to issue trading updates. Genus is due to report final results, while Playtech and THG are among those publishing interim figures.
Oil prices and company announcements are therefore likely to drive the opening, with gains for energy stocks potentially preventing a deeper decline across the wider index.
