Energy stocks keep FTSE 100 steady as trade deal optimism wanes

Link copied

Energy stocks keep FTSE 100 steady as trade deal optimism wanes.

stock :: 2025-06-12 :: source - reuters

By Reuters

Signage is seen outside the LSEG (London Stock Exchange Group) headquarters in Paternoster Square, London, Britain. REUTERS

(Reuters) - London's FTSE 100 was slightly lower on Thursday as recent optimism around the U.S.-China trade deal waned, but gains in heavyweight energy stocks and some companies limited declines.

The benchmark FTSE 100 (.FTSE) was flat as of 0901 GMT, after coming within touching distance of an intraday record high. Mid-caps (.FTMC) were down 0.6%.

U.S. President Donald Trump said on Wednesday that he was willing to extend a July 8 deadline for completing trade talks with countries, but it was not likely necessary as the U.S. would specify the terms of deals in a week or so.

The announcement comes after trade talks with China resulted in a deal to bring their truce back on track but failed to impress investors.

Risk assets sold off globally, with stocks lower in Asia (.CSI300),(.HSI) and Europe (.STOXX). The main U.S. stock index futures were also down over 0.4% each.

Geopolitical tensions also added to the cautious mood after Trump pulled some personnel from the Middle east amid mounting tensions with Iran.

However, the FTSE 100 managed to outperform peers as heavyweight energy stocks (.FTNMX601010) gained 1.4%. Shell (SHEL.L) and BP (BP.L) were the biggest boosts to the index.

Some corporate news also helped, with personal care stocks (.FTNMX452010) up 0.9%, powered by a 2.3% gain in Tesco (TSCO.L) after the food retailer's UK sales growth accelerated in the first quarter.

Health and safety device maker Halma (HLMA.L) gained 4.1% after its annual adjusted pretax profit beat expectations.

Worries around UK-U.S. trade tensions were also lower as the country is the only one to have signed a trade deal with the U.S. after Trump's scathing tariffs shook up global financial markets.

Meanwhile, data showed that the British economy shrank more-than-expected, the biggest monthly drop since October 2023.

Among other stocks, Intermediate Capital Group (ICGIN.L) and JD Sports (JD.L) lost 4% and 2.8%, respectively, as they traded without entitlement to their latest dividend payout.

Reporting by Purvi Agarwal in Bengaluru; Editing by Shailesh Kuber