"London's benchmark index dropped 55 points to 10,222 in early trading, after briefly falling as much as 80 points to touch 10,196, as traders weighed the impact of Labour's bruising local election results alongside escalating tensions involving the United States and Iran."
"Oil markets were jolted after renewed exchanges of fire in and around the Strait of Hormuz pushed Brent crude back above $100 a barrel, reviving concerns about global energy supply routes."
"Patrick Munnelly of Tickmill Group said investors were now confronting "a difficult combination" of geopolitical and domestic uncertainty. "The global story is oil and Hormuz; the UK story is whether political pressure further erodes confidence in the policy mix," he said."
"Government bond markets also remained under pressure. Britain's 30-year gilt yield - often viewed by analysts as a key measure of investor confidence in long-term political and fiscal stability - stood at 5.628 per cent on Friday morning after recently reaching a 28-year high of 5.8 per cent earlier in the week. The speed of the rise has unsettled markets."
The FTSE 100 fell sharply as investors weighed political instability in Britain and renewed Middle East disruption risks. The index dropped to 10,222 in early trading after briefly falling further. Oil markets reacted to renewed exchanges of fire around the Strait of Hormuz, lifting Brent crude back above $100 per barrel and reviving concerns about global energy supply routes. Labour’s weak local election performance and speculation about Sir Keir Starmer’s leadership increased domestic uncertainty. Government bond markets stayed under pressure, with the 30-year gilt yield at 5.628% after reaching a 28-year high of 5.8%. The 10-year gilt yield hovered near 4.9%, while sterling struggled to strengthen decisively.
Read at London Business News | Londonlovesbusiness.com
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