Oliver Hale - Unsplash
The UK's major stock indexes took a hit on Wednesday as volatile oil prices, fueled by ongoing tensions in the Middle East, kept investors on edge. Adding to the market's woes, a series of lackluster corporate earnings reports dampened sentiment further.
Brent crude prices surged past the $90-per-barrel mark, as skepticism mounted over the International Energy Agency's (IEA) reported plan for an unprecedented release of oil reserves. Earlier in the day, this announcement had briefly sent oil prices tumbling, but doubts lingered about whether it could effectively counterbalance the supply disruptions stemming from ongoing geopolitical conflicts. The energy sector saw a modest boost, climbing 0.5%, with oil giants Shell and BP both edging up by around 0.5% as crude prices regained ground. However, most other sectors within the FTSE 350 index faced a downward trend.
Meanwhile, investors digested a mix of corporate updates. Legal & General took a hit, plunging 5.5%, after the insurer fell short of full-year profit expectations and reported a dip in its solvency ratio. This comes as CEO Antonio Simoes embarks on a strategic overhaul of the company. Recruitment firm Robert Walters also faced headwinds, slipping 2.9% after announcing it would scrap its final dividend for 2025. The decision followed an annual pretax loss attributed to a challenging job market.
On a brighter note, construction giant Balfour Beatty soared 7.3%, buoyed by its optimistic forecast of a high-single-digit percentage rise in 2026 operating profits. The company highlighted its robust order book, which includes significant projects in the UK’s power sector, such as nuclear energy initiatives. On the flip side, Harbour Energy tumbled 8.7% after its third-largest shareholder, EIG Asset Management, offloaded approximately 60 million shares at a discount compared to Tuesday’s closing price.
TECHNICAL & TRADE VIEW - FTSE100
Daily VWAP Bearish
Weekly VWAP Bullish
Below 10600 Target 10000
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