The FTSE 100 closed lower on Thursday, ending the session down 20 points at 10,867 as investors assessed corporate earnings and developments surrounding the Strait of Hormuz agreement.
Despite several well-received company results, the index remained unable to break above the 11,000 level.
“The next big round number is still a distant dream for the FTSE, despite a day of well-received results,” said IG chief market analyst Chris Beauchamp.
Rising oil prices reduced some of the optimism seen earlier in the week, although prices remained significantly below levels from the previous week, providing some support for markets heading into August.
Hormuz agreement has limited market impact
Iran and Oman confirmed an agreement regarding the Strait of Hormuz, but the announcement had little immediate impact on oil prices and bond markets.
Investors continued monitoring developments around the strategic shipping route, which plays a key role in global energy markets.
UK approves Paramount-Warner Bros merger
The UK competition regulator approved the £110 billion Paramount-Warner Bros merger, with the deal also receiving approval from the UK culture secretary.
Culture Secretary Lisa Nandy decided not to intervene after Paramount CEO David Ellison provided legally binding commitments covering editorial independence, public service broadcasting and children’s programming.
The commitments include an additional £80 million investment in Channel 5 over three years and guarantees that its news operations will remain separate from CNN and CBS News.
Paramount also committed to maintaining the identities of children’s television channels Nickelodeon and Cartoon Network and pledged not to replace UK-produced content with imported programming.
The UK Competition and Markets Authority concluded that the merger was unlikely to significantly reduce competition, noting that the combined company would continue facing competition from rival film studios, streaming platforms and broadcasters.
The European Union has also approved the transaction, although the deal still faces a legal challenge in the United States led by California’s attorney general, with a trial scheduled for March 2027.
US markets show mixed performance
Wall Street was heading toward another mixed session as investors reacted to the latest technology earnings reports.
Dow Jones and S&P 500 futures were slightly higher, while Nasdaq futures declined by around 0.5%.
AppLovin, Western Digital and SanDisk led pre-market declines, falling approximately 19%, 15% and 10% respectively after releasing their latest results. eBay moved against the trend, gaining 1.4%.
Investors were also focused on upcoming U.S. economic data, including initial jobless claims, second-quarter productivity, unit labor costs and wholesale trade figures ahead of Friday’s non-farm payrolls report.
FTSE 100 market movers
Among UK-listed companies, WPP, Admiral and Persimmon gained following their latest results, while OSB, TP Icap and Wizz Air declined.
