Market Shifts: FTSE 250 Gains Amidst Easing Middle East Tensions
UK's FTSE 250 index climbed with travel and leisure stocks in the lead, as tensions eased in the Middle East. Carnival shares surged after a favorable profit forecast. Despite a flat FTSE 100 due to a rising pound and dropping oil stocks, optimism prevailed in the market.
On June 24, the UK's midcap index, the FTSE 250, recorded gains, driven by a surge in travel stocks as geopolitical tensions in the Middle East showed signs of easing. Notably, cruise operator Carnival led the charge, with its shares jumping 11.8% following a positive profit forecast and strong earnings performance.
The global travel and leisure sector echoed this upward trend, buoyed by a declared ceasefire between Israel and Iran. This geopolitical development also caused oil prices to tumble by 5%, suggesting a reduced risk of disruptions in oil supplies. The ceasefire, although shaky with allegations of violations, brought a sense of relief to investors.
Conversely, the FTSE 100 remained flat, impacted by downturns in major oil companies like BP and Shell, amid a rising pound and increasing grocery price inflation. With the Bank of England holding interest rates steady, market speculation suggests potential reductions in borrowing costs might be on the horizon.
(With inputs from agencies.)
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