4th Jun 2026 12:20
(Alliance News) - Stock prices in London were firmly lower at midday Thursday, as weakness in Asia-focused financials weighed heavily on the FTSE 100, while investors assessed mixed signals from the Middle East and downbeat UK construction data.
The FTSE 100 index was down 88.93 points, 0.9%, at 10,243.37. The FTSE 250 was down 64.19 points, 0.3%, at 23,122.10, and the AIM all-share was down 2.92 points, 0.4%, at 804.32.
The Cboe UK 100 was down 1.1% at 1,016.90, the Cboe UK 250 was down 0.2% at 19,844.87, and the Cboe small companies was down 0.1% at 18,740.08.
In European equities on Thursday, the CAC 40 in Paris was up 0.6%, while the DAX 40 in Frankfurt was up 0.3%.
The FTSE 100 was underperforming its continental peers, dragged sharply lower by Asia-focused financials. HSBC fell 5.3%, Prudential dropped 8.2% and Standard Chartered slid 7.1%.
Geopolitical uncertainty around the Middle East remained elevated.
Tehran and Washington issued conflicting messages over the status of ceasefire discussions. US President Donald Trump said on Wednesday that a firm agreement could be reached "this weekend", while Iran's Foreign Minister Abbas Araghchi countered that there had been no "significant process" in negotiations.
Meanwhile, the fragile Israel-Lebanon ceasefire appeared strained. Israeli forces and Hezbollah fighters exchanged strikes just hours after Israel and Lebanon agreed on Wednesday to implement a ceasefire, conditional on a halt to Hezbollah attacks. Hezbollah is not a formal party to the deal.
Brent oil was quoted at USD96.39 a barrel at midday in London on Thursday, down from USD97.37 late Wednesday.
In currency markets, the pound was quoted at USD1.3443 midday Thursday, compared to USD1.3435 on Wednesday. Against the euro, sterling edged down to EUR1.1554 from EUR1.1560 a day prior. The euro stood at USD1.1631, up from USD1.1603. Against the yen, the dollar was trading at JPY159.86, compared to JPY159.96.
Back in the UK, the construction sector downturn deepened sharply in May, according to S&P Global, with activity falling at the fastest pace in six years.
The S&P Global construction purchasing managers' index dropped to 38.2 in May from 39.7 in April, remaining well below the 50-point threshold that separates growth from contraction. The index has now been in contraction territory for 17 consecutive months.
May's reading marked the steepest decline in construction activity since May 2020 during the Covid-19 pandemic.
Excluding that period, it represented the sharpest contraction since March 2009. All three major categories of construction work recorded steep declines in output, as weakening demand and rising costs weighed on the sector.
Stocks in New York were called mixed. The Dow Jones Industrial Average was called up 0.4%, the S&P 500 index down 0.5%, and the Nasdaq Composite down 1.2%.
The yield on the US 10-year Treasury was quoted at 4.48%, narrowing from 4.49%. The yield on the US 30-year Treasury was quoted at 4.98%, narrowing from 4.99%.
In the eurozone, retail trade slowed in April on a monthly basis but remained higher than a year earlier, according to preliminary Eurostat data.
Seasonally adjusted retail trade volume fell 0.4% in the euro area and 0.5% across the EU compared with March, when volumes had risen by 0.8% and 1.1% respectively from February. The March figures were revised from a decrease of 0.1% in the euro area and an increase of 0.3% in the EU.
April saw an increase in trade of food, drinks and tobacco, offset by lower volumes for non-food products other than automotive fuel and reduced sales of automotive fuel in specialised stores.
Back in London, Relx topped the FTSE 100, up 3.4%, after Goldman Sachs reiterated a 'buy' recommendation on Wednesday.
JD Sports Fashion was also up 3.4%. The Lancashire-England based sports and outdoor wear retailer is reportedly exploring a sale of the wholesale business that holds the licence for the Billionaire Boys Club streetwear brand, founded by musician Pharrell Williams.
According to Sky News, JD Sports is working with advisers at Interpath on a potential transaction and has sounded out prospective buyers in recent weeks.
JD acquired A Number of Names, the wholesaler with rights to the BBC brand in markets including the UK, Europe, the Middle East and Canada, in late 2020.
While its performance since then has not been disclosed, one source described the brand as "non-core" to JD Sports's broader strategy.
Meanwhile, peer sportswear maker Puma was upgraded to 'buy' by Citigroup.
Entain rose 2.7% as speculation over a potential BetMGM buy-out continued.
On the FTSE 250, CMC Markets climbed 13% as it offered a bullish outlook and said it had reached a "key inflection point".
Partners Group Private Equity Ltd fell 3.2% after its manager, Partners Group Holding AG, flagged that evergreen redemptions are acting as a drag on asset growth.
Among smaller caps, Technology Minerals plunged 24% after outlining plans to raise up to GBP2.5 million through a fundraise. Hydrogen Utopia International fell 9.1% after setting up a subsidiary, Fortress Fuel, to focus on the defence energy market.
Metir jumped 19% as it hailed "major" commercial advances for its PFAS platform. Portmeirion Group tumbled 40% as it sought to raise up to GBP19 million in new equity through a placing and retail share offer at 50p, compared with its current market capitalisation of around GBP7.7 million.
Gold was quoted at USD4,473.00 an ounce, up from USD4,443.05 on Wednesday.
Still to come on Thursday's economic calendar are US weekly jobless claims and US EIA natural gas stocks.
By Eva Castanedo, Alliance News reporter
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