The FTSE 100 fell about 1% on Thursday, snapping a two-day winning streak, as it followed broader declines across European and US markets. The pullback came amid rising oil prices and ongoing geopolitical uncertainty, with mixed signals over potential peace talks between the US and Iran continuing to dampen risk appetite.
Energy stocks were the sole bright spot: Shell rose 0.6% and BP advanced 1%. In contrast, miners led the downside, and rate-sensitive areas such as real estate and growth stocks also underperformed. Among the major financials, HSBC slipped more than 0.5%, while Lloyds, Barclays, and NatWest each lost over 1%.
Other notable decliners included AstraZeneca, down 1.3%, Rolls-Royce and Rio Tinto, both off 2.7%, BAE Systems, which fell 1.6%, and Glencore, down 2.1%. Private equity group 3i dropped more than 4% despite reporting continued growth at its discount retailer Action.
On the upside, fashion and homeware retailer Next surged more than 6% after raising its profit guidance. Separately, BRC data highlighted a sharp deterioration in consumer confidence as inflation worries intensified, with expectations falling to a record low.
