London Stocks Slide Amid Middle East Tensions and Bank of England Standstill
London stocks fell to a two-week low as the Bank of England maintained borrowing costs amid Middle East conflicts. The FTSE 100 dropped 0.6%, pressured by a stronger pound, while energy sector gains helped limit total losses. The situation has impacted oil prices and investor risk appetite.
London's stock market experienced a notable decline on Thursday, as the FTSE 100 closed down 0.6%, reaching its lowest level in over two weeks. This drop was influenced by the Bank of England's decision to keep borrowing costs unchanged amid ongoing Middle East tensions.
The geopolitical conflict has caused investors to remain cautious, with the stronger pound adding further pressure on the index. Meanwhile, a public holiday in the United States resulted in thin trading on the financial markets.
The energy sector received a boost of 1.3%, thanks to higher oil prices, while personal goods and travel stocks experienced declines. As a result, there is increased scrutiny on whether UK corporate earnings can recover in the face of such challenges.
(With inputs from agencies.)
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