9th Jul 2026 09:28
(Alliance News) - Stock prices in London opened lower on Thursday, with the FTSE 100 lagging behind its European peers as a sharp fall in AstraZeneca overshadowed gains elsewhere in the market.
The FTSE 100 index opened down 56.80 points, 0.5%, at 10,432.24. The FTSE 250 was up 113.50 points, 0.5%, at 23,131.58, and the AIM all-share was up 2.31 points, 0.3%, at 760.38.
The Cboe UK 100 was down 0.3% at 1,035.44, the Cboe UK 250 was up 0.6% at 19,855.66, and the Cboe small companies was up 0.1% at 18,373.77.
London's blue-chip index underperformed its continental peers. While European markets rebounded after Wednesday's heavy losses triggered by renewed US-Iran tensions, the FTSE 100 remained in negative territory as AstraZeneca suffered its steepest fall since July 2017.
The pharmaceutical firm tumbled 9.3%, making it by far the biggest drag on the index.
As the FTSE 100's second-largest constituent, AstraZeneca weighed heavily on the benchmark after its gene-silencing drug Wainua, developed with Ionis Pharmaceuticals, failed in a late-stage trial to prevent heart complications in patients with a rare and potentially fatal cardiac disease.
Tensions in the Middle East remained in focus after the US launched a second consecutive night of strikes on Iran, saying it had hit 90 military targets after accusing Tehran of attacking commercial vessels in the Strait of Hormuz.
Iranian state media reported explosions along the country's southern coast and on Iranian-controlled Gulf islands, while Tehran said it had retaliated by targeting US military bases in Qatar, Kuwait and Bahrain.
Iran's chief negotiator with the US, Mohammad Bagher Ghalibaf, said Washington "still hasn't learned that bullying and breaking promises are no longer cost-free".
US President Donald Trump, meanwhile, said Iran wanted "to make a deal", although he questioned whether Tehran was "worthy" of renewed negotiations.
Oil prices eased after Wednesday's sharp rally. Brent crude traded at USD77.05 a barrel early Thursday, down from USD80.00 late Wednesday.
The retreat below the USD80 mark weighed on oil majors, with BP down 1.4% and Shell losing 0.8%.
The pound was quoted at USD1.3415 early Thursday, up from USD1.3358 at the London equities close on Wednesday. Against the euro, sterling eased to EUR1.1726 from EUR1.1722. The euro rose to USD1.1435 from USD1.1398, while the dollar slipped to JPY162.34 from JPY162.68.
Back in London, Computacenter provided some support for the FTSE 100, jumping 11% after raising its outlook on the back of strong demand from hyperscale customers in the US. The IT services firm now expects first-half adjusted pretax profit to be around double last year's relatively soft comparative of GBP81.5 million.
Antofagasta was the second-best performer on the FTSE 100, rising 4.1% after Citigroup raised its price target to 4,400 pence from 4,300p and reiterated its 'buy' recommendation.
Among other blue-chips, Centrica rose 0.6% after saying the UK government had signed heads of terms for a 20-year regulated contract supporting the life extension of the Sizewell B nuclear power station from 2035 to 2055.
The British Gas owner, which holds a 20% stake in the 1.2-gigawatt plant, said the agreement provides an inflation-linked contract-for-difference strike price of GBP70.50 per megawatt hour, based on 2025 prices, underpinning a fair return on around GBP800 million of investment.
Informa gained 0.8% after appointing former Reuters chief executive Tom Glocer as chair-elect. He will succeed John Rishton as non-executive chair in 2027 following a managed transition.
On the FTSE 250, Playtech surged 20% after saying first-half trading was significantly ahead of market expectations and upgrading its full-year guidance.
The Isle of Man-based gambling technology firm expects first-half adjusted Ebitda to exceed EUR155 million, driven by particularly strong momentum in the US through its partnership with Hard Rock Digital, alongside continued strength in Mexico, Colombia and several European markets.
CEO Mor Weizer said: "Playtech continues to further establish itself in regulated and regulating markets going into the second half of the year, and we are pleased with the progress towards our medium-term targets."
Among smaller caps, Capita plunged 16% after RBC cut its price target to 385 pence from 450p while maintaining an 'outperform' rating.
The outsourcing firm also warned operational issues relating to its Civil Service Pension scheme contract would reduce adjusted operating profit by between GBP25 million and GBP40 million as it continues working with the Cabinet Office to resolve the problems.
In UK politics, the Financial Times reported that Andy Burnham is considering basing part of his government in Manchester if he becomes prime minister.
The proposed "Number 10 North" would be overseen by the future deputy prime minister and focus on long-term economic strategy, devolving greater powers to regional authorities and redistributing investment across the UK.
The newspaper said Labour deputy leader Lucy Powell is the leading candidate for the deputy prime minister role, although insiders have suggested the position could instead go to Ed Miliband should Burnham decide against appointing him chancellor.
In European equities on Thursday, the CAC 40 in Paris was up 0.6%, while the DAX 40 in Frankfurt gained 0.7%.
German economic data also supported sentiment after the country's trade surplus widened more than expected in May.
According to the Federal Statistical Office, exports rose 0.9% month-on-month, defying expectations for a decline, while imports fell 2.5%, resulting in the trade surplus widening to EUR19.1 billion from EUR14.7 billion in April. Exports to the US jumped 23% on the month, making it Germany's largest export market, while shipments to China rose 7.1%.
In Asia on Thursday, the Nikkei 225 index in Tokyo closed up 1.4%. In China, the Shanghai Composite ended 1.7% higher, while the Hang Seng index in Hong Kong closed down 0.8%. The S&P/ASX 200 in Sydney closed 0.3% lower.
In the US on Wednesday, Wall Street ended mixed, with the Dow Jones Industrial Average down 1.1%, the S&P 500 down 0.3% and the Nasdaq Composite up 0.2%.
The yield on the US 10-year Treasury was quoted at 4.57%, narrowing from 4.60%. The yield on the US 30-year Treasury eased to 5.07% from 5.09%.
Gold traded at USD4,105.90 an ounce early Thursday, up from USD4,075.60 late Wednesday.
Still to come on Thursday's economic calendar, Ireland releases consumer price inflation figures.
In the US, investors will monitor initial jobless claims, existing home sales and EIA natural gas stocks.
By Eva Castanedo, Alliance News senior economics reporter
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