The FTSE 100 edged higher on Thursday, extending modest gains as weakness in oil majors and pressure on Asia-focused financials failed to derail broader buying interest across London markets, with the index closing up 0.3% at 10,360.32 while the FTSE 250 advanced 0.5% to 23,302.65.
Energy markets remained unsettled as investors tracked shifting geopolitical signals from the Middle East, where Iran reported no tangible progress in negotiations to end the conflict, even as political moves in the United States aimed at limiting military action.
Brent crude softened to $94.88 a barrel, down from $97.37 at the previous London close, and that decline fed directly into equity performance for London-listed oil majors, with BP and Shell slipping 1.2% and 1.5% respectively as sentiment cooled alongside the oil price.
In financials, pressure built around Asia-exposed lenders and insurers after reports of tighter restrictions on mainland Chinese residents opening offshore accounts at major Hong Kong banks, with the South China Morning Post highlighting increased regulatory scrutiny on capital outflows, while JPMorgan noted that new decree measures tighten oversight without changing overall flow limits but still generated market concern around exposure to mainland-linked activity.
Prudential fell 7.2%, while HSBC and Standard Chartered declined 2.2% and 3.2% respectively as investors reassessed regional risk exposure, even as analysts suggested the practical impact of the policy shift may ultimately prove limited.
Against that backdrop, defensive and data-driven stocks provided support, particularly those viewed as beneficiaries of artificial intelligence investment trends, with Relx rising 6.0%, London Stock Exchange Group adding 5.3% and Auto Trader gaining 3.4% as investors rotated into perceived steadier earnings profiles.
European markets also moved higher, with the CAC 40 up 1.2% and the DAX 40 rising 0.6%, while in the United States the Dow Jones Industrial Average climbed 1.8% and the S&P 500 gained 0.3% although the Nasdaq Composite slipped 0.2% after Broadcom fell sharply despite strong results, as investors reacted to restrained AI revenue guidance.
Mid-cap movers were more pronounced, with CMC Markets surging 17% after forecasting a strong period ahead and projecting 2027 operating income well above expectations, supported by improved profitability and revenue growth momentum, while analysts at RBC lifted price targets following the update.
Elsewhere Ceres Power reversed recent gains, falling 7.3% after a downgrade from Panmure Liberum, bringing a pause to its recent strong run as sentiment shifted following valuation reassessment.