On Monday, the UK’s FTSE 100 index fell to its lowest level in over three weeks, influenced by a strengthening pound and investor concerns about the ongoing Middle East conflict. This decline affected shares of globally-exposed firms, including major players like HSBC and British American Tobacco.
The international market witnessed a broad dollar weakness after dovish comments from a Federal Reserve official boosted the pound by 0.4%. As a result, the FTSE 100 saw a 0.2% dip, while the midcap index, focusing on domestic businesses, decreased by 0.1%.
Investment sentiment was further strained by potential Iranian responses to U.S. airstrikes, raising fears about oil supply routes in the region. Contrarily, oil prices slightly eased. Notably, UK companies like Shell and BP gained slightly amid the turbulence, while airline stocks suffered declines due to higher crude prices.
(With inputs from agencies.)
