The UK’s benchmark FTSE 100 stock index opened higher on Wednesday, led by energy and industrial metal mining shares, while JD Sports fell after the Nike retailer kept annual outlook unchanged despite a first-half profit beat.
The blue-chip FTSE 100 was up 0.4% by 07:20 GMT, while the more domestically-focussed midcap FTSE 250 index was flat. Heavyweight oil and gas shares rose 2.5% as oil prices jumped by more than a dollar due to rising concerns that the Middle East tensions could escalate, potentially disrupting crude output from the region, following Iran’s biggest ever military blow against Israel.
The industrial metal miners gained 1% on higher copper prices, buoyed by brighter demand prospects after China’s stimulus measures.
JD Sports Fashion tumbled 5.5% to the bottom of FTSE 100, as the sports retailer did not update its annual guidance despite beating market outlook for first-half profit, citing a 20 million pound ($26.6 mln) foreign exchange headwind in the second half of the year.
Oil stocks support FTSE 100, midcaps tumble as Iran attack report spooks markets
The automobiles and parts index led sectoral declines, down 1.3%, as Aston Martin lost 3.6%, extending declines to a third consecutive session.
Elsewhere, pay settlements awarded by British employers held at their lowest in two years in the three months to August, according to a survey that could reassure the Bank of England as it considers whether to cut interest rates again.
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