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Highlights
The FTSE 100 opened on a weaker note, driven by rising tensions in the Middle East and anticipation surrounding the upcoming interest rate decision from the Bank of England. Early trading saw a general decline across several key sectors, including mining, energy, and recruitment, dragging the benchmark index downward.
Oil Climbs While Gold Weakens
The price of oil rose in response to renewed threats between Israel and Iran, contributing to broader market unease. Despite typically being viewed as a stabilising asset during geopolitical stress, gold moved lower in early trades. This contrasting trend had a visible impact on stocks tied to precious metals.
Mining shares experienced downward momentum, with Fresnillo plc (LON:FRES), Endeavour Mining plc (LON:EDV), and Hochschild Mining plc (LON:HOC) all trading lower. Broader mining stocks such as Glencore plc (LON:GLEN), Anglo American plc (LON:AAL), and Antofagasta plc (LON:ANTO) also declined, weighed by the fall in metals prices and investor caution.
Swiss Central Bank Cuts Rates to Zero
In a move that added further intrigue to an already eventful week, the Swiss National Bank lowered interest rates to zero. The decision was driven by signs of disinflation and is expected to influence expectations for other central banks, including the Bank of England, which is set to announce its own decision later today.
The rate cut in Switzerland marked one of the earliest major policy shifts of the day and served as a reminder of diverging monetary paths across different economies.
Recruitment Sector Hit by Company Update
A significant move came from Hays plc (LON:HAS), where shares dropped sharply following the release of a disappointing trading update. The recruitment firm saw notable selling pressure as market participants reacted to weaker-than-expected figures. Hays, part of the FTSE 350, led losses among mid-cap companies in the early session.
Whitbread Amongst Broader Market Decliners
Hospitality group Whitbread plc (LON:WTB), which operates in the FTSE 100, was among the stocks reflecting the cautious mood. With heightened macroeconomic tension and uncertainty around travel and consumer spending, the sector saw a dampened opening.
Mixed Commodities Sentiment Impacts Broader Indices
While energy prices offered some support to oil-linked shares, the overall impact on the broader FTSE indices remained negative. The divergence between oil and gold prices added complexity to commodity-based stocks, further contributing to the mixed performance across the board.
With the market focused closely on upcoming policy decisions and escalating geopolitical developments, volatility remained evident across sectors, particularly among cyclicals and commodities.
