FTSE 100 Little Changed on Thursday
The FTSE 100 hovered near the flatline on Thursday as investors remained focused on geopolitical and defense developments. Markets monitored the fragile ceasefire between Israel and Iran, along with NATO’s decision to raise its defense spending target from 2% to 5% of GDP by 2035. In corporate news, Shell stated it has no immediate plans to bid for BP, following a Wall Street Journal report of potential takeover talks. Shell shares were flat, while BP slipped 0.5%. Other major stocks like AstraZeneca, HSBC, and Unilever also declined between 0.5% and 1%. On the upside, defense firm BAE Systems gained 1.5% amid optimism over higher military spending. Gold miners Fresnillo and Endeavour rose 2.2% and 1.5%, respectively, as gold prices advanced. Base metal miners Anglo American, Antofagasta, and Rio Tinto also advanced between 1.2% and 1.7% on rising commodity prices.
Germany’s DAX index advanced 0.5% on Thursday, surpassing the 23,600 threshold and outperforming its European counterparts. Investor focus remained on the ceasefire developments between Israel and Iran and NATO’s pledge to raise defense spending to 5% of GDP by 2035. German plans for record-breaking public investment also supported sentiment. On the corporate front, defense stocks advanced firmly, with Rheinmetall and Hensoldt rising more than 2%, while Renk added 1.8%. Banks, techs and auto companies also posted solid gains.
