London’s FTSE 100 was little changed on Friday as gains in energy stocks, supported by higher oil prices following escalating tensions in the Middle East, offset weakness in financial shares.
Investors also monitored political developments after Andy Burnham was confirmed as the UK’s next prime minister, with his term set to begin on July 20.
The blue-chip FTSE 100 index edged up 0.04% to 10,576.97.
Meanwhile, the mid-cap FTSE 250 index slipped 0.4%.
Energy stocks advance on higher oil prices
Energy shares led gains after crude oil prices moved higher amid concerns over potential supply disruptions.
The United States intensified its renewed bombing campaign on Iran by striking bridges and an airport.
In response, Tehran launched attacks on US military bases across the Middle East.
The developments heightened concerns over oil exports through the Strait of Hormuz and the Red Sea, pushing the energy sector up 1.7%.
Utilities also outperformed the broader market, with the sector gaining 2% to lead sectoral advances.
Financial shares weigh on the index
Despite strength in energy stocks, financial shares limited gains in the benchmark index.
Banking stocks declined, with Barclays, Lloyds Banking Group, and Standard Chartered falling between 1% and 1.6%.
The sector’s weakness weighed on overall market performance.
Personal goods stocks also came under pressure, falling 4.3%.
Burberry shares dropped more than 5.6% after the British luxury goods company warned that the conflict in the Middle East was reducing tourist spending across Europe.
The company, however, reported strong sales growth in the United States and China during the April-June quarter.
Even so, investor focus remained on the warning about softer tourist demand.
Burnham to take office as Prime Minister
On the political front, Andy Burnham is set to assume office as the UK’s new prime minister on July 20.
He will take office during a period of continued focus on clean energy investment, restrictions on new North Sea oil and gas licensing, and the role of public ownership in the country’s energy and infrastructure sectors.
Burnham will become the sixth UK prime minister since David Cameron stepped down in July 2016 following the Brexit referendum.
During the same period, the UK has also seen significant ministerial turnover, with seven finance ministers and eight energy ministers serving in office.
Burnham is expected to reshuffle his cabinet after taking office.
He succeeds Keir Starmer, who announced his resignation on June 22 following weeks of pressure from Labour lawmakers.
Burnham returned to Parliament through a June by-election before quickly securing overwhelming backing from Labour MPs to become the party’s sole leadership candidate.
GSK falls after trial disappointment
Among individual stocks, GSK declined 3.8% after the pharmaceutical company announced it would halt development of its experimental treatment for refractory chronic cough.
The company said the therapy failed a late-stage clinical trial and did not achieve key efficacy goals across multiple dosage levels.
The update weighed on investor sentiment toward the stock.
BP and ConocoPhillips gain on Iraq investment report
BP gained 1%, while ConocoPhillips rose 1.2%.
The gains came after CNBC reported that both companies are set to announce billions of dollars in new investments in Iraq.
The investments are part of Washington’s efforts to strengthen Iraq’s energy sector and reduce reliance on export routes threatened by regional conflict.
Overall, the FTSE 100 remained broadly stable as strength in energy and utility stocks balanced declines in financials, consumer goods and healthcare, while investors continued to assess geopolitical developments and the UK’s changing political landscape.
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