Flat at 10,821 as oil nears $100 US futures: Wall Street was set for a weaker open. The FTSE 100 was broadly flat at 10,821.06, down 1.07 points or 0.01%, as investors weighed rising oil prices and renewed inflation concerns. Brent crude rose 1.73% to $98.68 a barrel after Iran-aligned Houthi forces attacked Saudi energy facilities, raising concerns about further disruption to regional supplies.
Brent had earlier reached $99.46, its highest level since 24 July, while West Texas Intermediate climbed to $94.73, its strongest level since 8 June. The oil price surge has renewed concerns about inflation and interest rates, with European shares falling as investors assessed the potential economic impact of higher energy costs. The pan-European Stoxx 600 was lower in early trading, while banking stocks came under pressure as investors weighed the risk that higher energy costs could weaken economic growth.
The pound slipped 0.11% against the dollar to $1.3526, while the euro fell 0.09% to $1.1612. Computacenter shares fell over 3% to 5,390p after an early rally, with Dunelm among the sharpest fallers due to unusually hot weather weakening sales. Funding Circle shares fell despite raising profit guidance, after CEO Lisa Jacobs announced plans to step down by September 2027.
US stock futures pointed to a weaker Wall Street open, with Dow futures down about 0.9%, S&P 500 futures 0.4% lower, and Nasdaq 100 futures down 0.2% as oil prices approached $100 a barrel. Reuters said investors will continue to watch oil prices and bond yields closely as Middle East tensions add to inflation concerns and raise questions about interest rate paths. By 10:30am, the FTSE 100 clawed back losses on copper rallying Antofagasta to the top of the leaderboard, with sterling softening against the dollar.
Copper prices extended their record-breaking run, supported by tightening supplies and demand from power grids, renewable energy, and AI data centers. Weir Group, Auto Trader, Spirax Group, and Coca-Cola HBC were strong performers. Computacenter reversed early gains, falling 1.61% despite upgrading its profit outlook.
Next lost 1.32%, while banks remained under pressure. The FTSE 250 was down 0.33% at 24,426.99. Record copper prices and Brent crude near $99 kept inflation concerns alive, despite the FTSE 100’s partial recovery.
Asian markets showed mixed results, with Australia’s S&P/ASX 200 closing 1% lower, Japan’s Nikkei 225 down 0.6%, and South Korea higher due to semiconductor stocks. British Retail Consortium figures showed retail sales growth slowing to 0.7% year-on-year in August, with non-food sales declining 0.8%.
Source: Proactive Investors
