23rd Apr 2026 08:58
(Alliance News) - Stock prices in London opened lower on Thursday, as the price of oil climbed amid ongoing uncertainty in the Middle East, and Sainsbury's latest results were poorly received.
The FTSE 100 index opened down 39.06 points, 0.4%, at 10,437.40. The FTSE 250 was down 138.58 points, 0.6%, at 22,833.43, and the AIM all-share was down 2.03 points, 0.3%, at 806.09.
The Cboe UK 100 was down 0.4% at 1,039.78, the Cboe UK 250 was 0.8% lower at 19,906.76, and the Cboe small companies was down 0.2% at 18,340.16.
In European equities on Thursday, the CAC 40 in Paris was up 0.6%, while the DAX 40 in Frankfurt fell 0.3%.
Sterling was at USD1.3487 on Thursday morning, down from USD1.3506 at the London equities close on Wednesday. Against the euro, sterling was little changed at EUR1.1526 from EUR1.1525.
The euro was a little lower at USD1.1701 from USD1.1722. Against the yen, the dollar was higher at JPY159.62 versus JPY159.39.
Uncertainty in the Middle East weighed on stocks, as the price of oil climbed higher.
Brent oil was trading higher at USD102.69 a barrel on Thursday morning from USD101.42 on Wednesday.
As a result, shares in oil majors Shell and BP were up 0.7% and 0.4% respectively.
Iran said it would not reopen the Strait of Hormuz as long as the US naval blockade remained in place, calling it a "blatant violation" of the ceasefire between the longtime foes.
Iran's Revolutionary Guards meanwhile said their naval forces had seized two container ships trying to cross the strategic strait, a move US President Donald Trump does not consider to be a ceasefire violation because the vessels are not American or Israeli, the White House said.
Swissquote analyst Ipek Ozkardeskaya said: "One pattern is clear today: tech-heavy indices and energy are outperforming other sectors, as the global economic outlook deteriorates due to higher energy prices. Further upside is possible for crude oil, but gains will likely remain short-lived, as at these levels demand typically slows enough to cap further upside. So far, USD120 per barrel has acted as a strong resistance to bullish moves."
Back in the UK, public sector borrowing fell last month to the lowest figure for March since 2022, official numbers showed.
According to the Office for National Statistics, net borrowing by the UK government amounted to GBP12.61 billion in March, narrowed from GBP13.98 billion a year earlier and less than GBP12.82 billion in February.
Borrowing was higher than the FXStreet-cited market consensus of GBP10.4 billion, however.
Even so, it was the lowest March borrowing figure since 2022, when borrowing was GBP5.54 billion.
Borrowing in the financial year that ended in March was initially estimated at GBP132.0 billion. This was 13% less than GBP151.2 billion in the financial year to March 2025 and GBP700 million less than the GBP132.7 billion forecast by the Office for Budget Responsibility.
In Asia on Thursday, the Nikkei 225 in Tokyo was down 0.8%. In China, the Shanghai Composite was 0.3% lower, while the Hang Seng Index in Hong Kong lost 1.0%. The S&P/ASX 200 in Sydney was 0.6% lower.
In the US on Wednesday, Wall Street ended higher, with the Dow Jones Industrial Average up 0.7%, the S&P 500 1.1% higher and the Nasdaq Composite gained 1.6%
The yield on the US 10-year Treasury was quoted at 4.31% on Thursday, widened from 4.29% on Wednesday. The yield on the US 30-year Treasury advanced to 4.91% from 4.89%.
Back in London, shares in J Sainsbury were down 5.3% as it reported underlying pretax profit below expectations, and warned of a potential hit to future profit from the war in the Middle East.
The grocer said pretax profit from continuing operations rose to GBP619 million in the 12 months to the end of February from GBP607 million a year earlier. Revenue excluding VAT but including fuel climbed 2.7% to GBP33.65 billion from GBP32.77 billion.
Underlying pretax profit rose 1.3% to GBP718 million from GBP709 million, below the company-compiled consensus of GBP730 million.
Retail underlying operating profit fell in line with expectations by 1.1% to GBP1.03 billion, due to "significant operating cost inflation" and "investment in value in a more competitive market".
The company declared a full year dividend of 13.7p, up 0.7% from 13.6p a year prior, but below consensus expectations for a dividend of 13.9p.
Looking ahead, the company said it has made a positive start to the new financial year, with grocery volume growth ahead of the market.
It expects underlying operating profit between GBP975 million and GBP1.08 billion. For financial 2026, it reported total underlying operating profit of GBP1.03 billion, up 1.1% from GBP1.01 billion.
The company warns that the duration and extent of impacts from the conflict in the Middle East is "very uncertain", which is reflected in its profit guidance. "We will do everything we can to support our customers and colleagues over the coming months, with absolute focus on keeping prices low," said Chief Executive Simon Roberts.
On the FTSE 250 index, shares in WH Smith sank 11% as it reported a wider loss for the first half of the year and suspended its dividend.
The Swindon, England-based travel retail operator said its pretax loss widened to GBP25 million in the half year to February from a restated GBP4 million loss a year prior.
Headline profit before tax and non-underlying items fell 86% to GBP3 million from GBP21 million.
The firm suspended its dividend, compared to an 11.3p interim dividend a year ago, to "reduce debt" and strengthen its financial position.
WH Smith said it is taking a more cautious outlook for the rest of the year due to the impact from the conflict in the Middle East on passenger numbers and consumer confidence.
It now expects to deliver financial 2026 headline group profit before tax and non-underlying items between GBP90 million and GBP105 million, down from GBP108 million last year. It initially guided for a figure between GBP100 million and GBP115 million for financial 2026.
On the AIM market, shares in RWS jumped 15%.
The language services and artificial intelligence solutions provider said revenue for the six months to the end of March rose 5% to GBP360 million, or 7% on an organic constant currency basis.
It expects adjusted pretax profit of GBP24 million for the first half, up 33% from GBP18 million a year prior.
The company forecasts its financial 2026 performance to be in line with market expectations and existing guidance, with low single digit revenue growth on an organic constant currency basis and improving profitability.
Gold was lower at USD4,717.50 an ounce early on Thursday from USD4,734.05 late Wednesday.
Still to come on Thursday's economic calendar are a slew of flash composite PMI reports including the UK at 0930 BST. Weekly jobless claims numbers will also be released in the US.
By Michael Hennessey, Alliance News reporter
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Related Shares:
ShellBPSainsbury'sWh SmithRWS Holdings