The FTSE 100 fell on Thursday as fears of a drawn-out conflict set in, with conflicting messages from the US and Iran sending stocks lower and oil higher.
Brent Crude was back above $100 at $107 while the FTSE 100 fell more than 1% to 9,970.
Yesterday’s rally was abruptly sold into by traders on Thursday as they attempted to make sense of Iran’s denial of any dialogue with the US, and each side issued peace plans the other was unlikely to accept.
“Investors have eagerly awaited a ceasefire in the Middle East this week but once again there are mixed messages from the US and Iran, leaving markets confused,” said Dan Coatsworth, head of markets at AJ Bell.
“Momentum has been lost across the main European stock indices and oil has edged higher, meaning it’s still a waiting game.”
Unsurprisingly, most FTSE 100 constituents were down at the time of writing on Thursday, with 3i Group leading the way after its core holding, Action, released softer sales.
3i Group shares were down 9% at the time of writing.
Ex-dividends weighed on the index, with names such as Aviva and Segro losing the right to their upcoming dividend payments.
Miners tumbled as risk-off trade took hold. Anglo American and Antofagasta lost between 4% and 5%. Precious metals miners Fresnillo and Endeavour were down as gold sank 2.5%. Silver was 6% lower.
Banks and housebuilders also resumed their declines.
Next has, on many occasions, been a beacon of light amid challenging conditions, and was so again on Thursday, when it released results that exceeded its own expectations. Next has a habit of under-promising and over-delivering. Pre-tax profits of £1.158bn, up 14.5% compared to last year, were welcomed by investors, and shares rose 5%.
“Next delivered its full-year results in style as pre-tax profit growth of 14.5% edged ahead of its recently upgraded guidance,” said Aarin Chiekrie, equity analyst, Hargreaves Lansdown.
“The strong performance was driven by better-than-expected UK sales and continued high double-digit growth in overseas markets. Quality over quantity is what consumers want, leading them to buy slightly fewer, higher-priced, better-quality items. With its wide range of customers, that’s playing into Next’s strengths, helping drive more sales across the board.”