Banks, telecoms weigh on FTSE 100; focus on US-Iran talks

By Reuters News

Sept 22 (Reuters) - The UK's FTSE 100 edged lower on Tuesday as banks and telecoms stocks retreated, while investors awaited potential US-Iran talks after signs of improved oil flows in the Strait of Hormuz.

The blue-chip FTSE 100 index .FTSE fell 0.29% to 10,708.33 points, while the midcap FTSE 250 .FTMC climbed 0.14%.

  • Investors are cautious ahead of potential US-Iran talks at the United Nations General Assembly this week after more supplies emerged through the strait over the weekend.

  • Oil prices fell to a two-week low as prospects for Gulf supplies improved, with Iran signalling it could reopen the Strait of Hormuz within seven days and Saudi Arabia set to resume exports from its Red Sea port.

  • Heavyweight banks .FTNMX301010 fell 1.63% after becoming the biggest gainers in the previous session, with HSBC HSBA.L falling 1.6% and Standard Chartered STAN.L sliding 2.9%.

  • Telecom stocks <.FTNMX151020 > also slipped 2.45%. BT Group BT.L led the losses with a 3.8% fall, while Vodafone VOD.L and Airtel Africa AAF.L dropped by 2.2% and 1.9% respectively.

  • Defensive consumer stocks offered support to the main index with Diageo DGE.L gaining 1.5% and Unilever ULVR.L rising 1.2%.

  • Among other stocks, home improvement retailer Kingfisher KGF.L climbed 12.4% after raising its full-year profit outlook following a 9.9% rise in first-half earnings.

  • British engineering firm Smiths Group SMIN.L rose 7.5% after it beat expectations for its full-year operating profit and launched a process to sell its US asbestos liability.

  • Cell and gene therapy manufacturer Oxford Biomedica OXB.L rose 6% after posting a 9% year-on-year increase in first-half revenue.

  • A gauge of British factory orders rose this month to reach its highest level since July 2023, a survey showed, adding to recent signs of resilience in Britain's economy.

  • Britain's government borrowed more than expected in August, official data showed, pushing the financial year-to-date deficit further above forecasts and adding pressure on finance minister John Healey ahead of his first budget next month.

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