FTSE 100 holds steady as Middle East tensions remain in focus

The FTSE 100 is trading at around 10,756 points on Wednesday. UK equities remain firmly under the influence of military developments in the Middle East and the resulting rise in energy prices across global financial markets. This has pushed the recently concluded G20 finance ministers’ meeting in the United States somewhat into the background, despite several noteworthy comments relating to the situation in the Middle East and developments in currency markets.

In the UK market, investors are primarily favouring banks and insurance stocks today, while selected mining and commodity shares are also attracting buying interest. Market participants are taking a more cautious approach towards oil majors BP and Shell, however. This could reflect expectations that tensions in energy markets may begin to ease.

Technology and consumer stocks remain out of favour and continue to face selling pressure on Wednesday. Overall, trading in London has so far remained relatively calm, with the FTSE 100 moving within a narrow range and showing little sign of heightened market stress.