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 through a raft of corporate earnings.
The blue-chip FTSE 100 index dropped 0.8% to 10,388.84 points by 10:40 a.m. GMT, while the midcap FTSE 250 fell 1.1%.
• Brent crude futures surged past $100 a barrel, as Iran tightened its grip on the Strait of Hormuz and said it will not reopen the waterway until the U.S. lifts its naval blockade.
• The rise in oil prices pressured travel & leisure stocks, with Wizz Air and Carnival down 3% and 2.4%, respectively.
• Travel retailer WH Smith plunged 10.6% after it cut its annual profit forecast and suspended dividend.
• Meanwhile, heavyweight banks Barclays and HSBC fell 2.1% and 0.9%, respectively.
• Among miners, Fresnillo declined 6.9%, and Rio Tinto fell 2.1%, tracking precious and base metals.
• 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.
• The FTSE 100 is down 2.7% 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 5.2% after it warned that the Iran war could cloud its outlook, mirroring concerns raised by peer Tesco earlier in the week. Tesco shares fell 3% on Thursday.
• The London Stock Exchange Group gained 1.9% after forecasting annual revenue growth at the upper end of its range.
• Software firm Relx was down 1.3% after the company reaffirmed its full-year outlook.
(Reporting by Utkarsh Tushar Hathi; Editing by Diti Pujara)
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