The FTSE 100 fell more than 1% to a three-week low on Thursday, erasing part of Wednesday’s 0.8% rebound, as the ongoing conflict in the Middle East continued to weigh on investor sentiment.
Mining stocks led the decline, pressured in part by weaker gold and silver prices amid expectations that US interest rates will remain higher for longer. Precious metals producers Fresnillo and Endeavour Mining dropped about 6–7%, while other heavyweight miners also came under significant pressure, including Rio Tinto (-5.7%), Antofagasta (-4.2%) and Anglo American (-4.2%).
Consumer goods group Reckitt Benckiser slid more than 6% despite posting a solid 5.4% increase in fourth-quarter like-for-like sales. Airline shares were also hit: EasyJet lost 4.7% and International Airlines Group fell 3.7%, after airspace closures across the Middle East triggered more than 23,000 flight cancellations worldwide. EasyJet is also set to drop out of the index.
In contrast, Rentokil Initial gained more than 10% after reporting stronger annual profits.
