FTSE 100 closes just below record high amid rising energy stocks and Middle East conflict
From Morningstar: 2025-06-17 05:00:00
The FTSE 100 closed just below a record high on June 16, supported by rising energy stocks amid escalating Middle East conflict. The index’s recent high was set on June 12 at 8,884 points, just before Iran struck Iran’s nuclear facilities, causing oil prices to surge and global equity markets to dip.
Since April 9, the Morningstar UK Index has been one of Europe’s best-performing stock markets, driven by banking stocks like HSBC, Rolls-Royce, and Shell. BAE Systems has also contributed to gains, with all stocks except BAE Systems considered fairly valued by Morningstar metrics.
Shell, the third largest company in the Morningstar UK Index, has seen a 4% increase in share price in the last five days due to soaring oil prices following the Iran-Israel conflict. BP’s shares, the index’s 10th largest stock, have also risen nearly 5% in the same period.
High-street banks like Lloyds Banking Group and NatWest have been strong performers in 2025, following a breakout year in 2024. Net interest margins remain high for banks, despite four interest rate cuts, and defaults are low. Banks are well-capitalized businesses with profitability metrics in their favor.
Mining company Fresnillo leads the rally in the index, with a 66.95% return from April 9 to June 11, benefiting from soaring gold and silver prices. Burberry follows closely with a 66.04% gain, while Spectris saw a 64.15% return after accepting a bid from US private equity firm Advent. Airlines like Jet2, IAG, and easyJet also performed well, reflecting a boom in travel demand.
Year to date, the Morningstar UK Index has climbed just below 10% from January to June 11 in sterling terms, positioning it for its best annual gain since 2021. This marks its best start to the year since 2021, when it rallied 12.57%. 1. The stock market reached record highs today with the S&P 500 closing at 4,500 points for the first time in history. This milestone comes as investors remain optimistic about the economic recovery and strong corporate earnings reports.
2. A new study published in the Journal of Medicine found that the Pfizer-BioNTech COVID-19 vaccine is highly effective in preventing severe illness and hospitalization caused by the Delta variant. The study included data from over 40,000 participants and showed an efficacy rate of 88%.
3. In international news, tensions between Russia and Ukraine are escalating as Russia continues to build up its military presence near the Ukrainian border. The United States and NATO have expressed concern over the situation and are monitoring the developments closely.
4. The United Nations released a report highlighting the urgent need for action on climate change, warning that the world is on track to exceed the critical 1.5°C warming limit in the next decade. The report calls for immediate and ambitious measures to reduce greenhouse gas emissions and mitigate the impacts of climate change.
Read more at Morningstar: UK Stock Markets Ride Out Tariff Turmoil,…