European stock markets, including the FTSE 100, are expected to open lower today. This follows a global tech selloff yesterday and persistent concerns about rising oil prices, which have now surpassed $95 per barrel for Brent crude after hitting $90 earlier in the week due to escalating geopolitical tensions involving Iran and US strikes. Oil prices experienced a significant jump of 4% today, reaching their highest level since early June.
The FTSE 100 closed up 61.15 points at 10,585.91 yesterday but is called to open lower by approximately 14 points at 10,572. Despite the broader market decline, some sectors are performing well. Oil giants like BP and Shell are among the risers, benefiting from the 2.6% increase in crude oil prices. Other gainers include precious metals miner Endeavour Mining, up 2%, and aerospace companies like Melrose and Rolls-Royce, rising around 1%. Conversely, typical volatile names like Games Workshop, Entain, Sage, RELX, and 3i Group are among the biggest fallers.
In economic news, UK inflation softened more than expected in June, with the Consumer Prices Index (CPI) slowing to a 2.6% annual rate from 2.8% in May. Month-on-month, CPI eased to 0.1% from 0.2%. Core CPI held steady at 2.6%, and services inflation, a key metric for the Bank of England, eased to 3.6% from 3.7%, though both remained slightly above expectations. Lower motor fuel prices, specifically diesel, and falling food and clothing prices contributed to this moderation. However, there is an anticipation of a significant upward shift in inflation in the next monthly data due to an upcoming hike in the Ofgem energy price cap.
