Lunchtime market roundup: European blue chips lower as oil prices rise

Blue chip stock indices in London, Paris and Frankfurt were lower on Thursday afternoon amid rising oil prices, as investors await weekly jobless data from the US.

The FTSE 100 index was down 35.79 points, 0.3%, at 10,707.56. The FTSE 250 was down 76.78 points, 0.3%, at 24,566.74, and the AIM all-share was up 1.90 points, 0.2%, at 803.54.

The Cboe UK 100 was down 0.3% at 1,064.50, the Cboe UK 250 was down 0.3% at 21,370.65, and the Cboe small companies was up 0.2% at 19,120.63.

On the FTSE 100, JD Sports Fashion plunged 15% after lowering its profit outlook amid continued struggles in North America.

The sportswear retailer cut financial 2027 adjusted pretax profit guidance to between £700 million and £800 million from £750 million to £850 million amid tougher-than-expected trading, particularly in North America.

Second-quarter group organic sales fell 1.3%, against consensus for 0.5% growth, while like-for-like sales declined 3.1%, worse than the expected 2.0% fall.

North American like-for-like sales dropped 6.8%, compared with consensus for a 0.6% decline, reflecting weaker consumer sentiment, slower demand for high-heat footwear and delayed back-to-school spending.

UK trading fared better, with like-for-like sales rising 0.8%, versus expectations for a 2.9% decline.

JD Sports said promotional conditions and consumer and footwear product-cycle headwinds may persist into the second half, while maintaining free cash flow guidance of £460 million to £520 million.

Investec fell 4.4%, and Legal & General lost 3.5%, with both stocks trading ex-dividend.

Standard Life edged 0.2% higher after forming a partnership to expand its UK pension risk transfer business, backed by an initial capital commitment of up to £2 billion over five years.

Standard Life will contribute £500 million, with the remainder provided by institutional investors including CVC Capital Partners, Prudential Financial, Goldman Sachs and MS&AD Insurance.

The partnership, over which Standard Life will retain full operational control, is designed to help it compete for larger and more complex defined-benefit pension schemes.

Standard Life expects the venture to generate new fee-based income and support mid-single-digit annual operating cash generation growth, with only a minor near-term impact on capital and solvency ratios.

On the FTSE 250, Trainline fell 8.8%, extending Wednesday's losses after the UK Competition & Markets Authority opened a formal consumer protection investigation into how mandatory booking fees are presented on its platform.

The CMA is examining whether mandatory train and coach booking fees are included in the total upfront price shown to customers at the start of the booking process. If it ultimately finds an infringement, the regulator can order customer compensation and impose fines of up to 10% of global turnover.

The pound was quoted at USD1.3643 at midday Thursday, higher than USD1.3608 at the London equities close on Wednesday. Against the euro, sterling fell to EUR1.1663 from EUR1.1669 a day prior.

The euro traded at USD1.1697 at midday Thursday, higher than USD1.1662 late Wednesday. Against the yen, the dollar was quoted at JPY158.47 versus JPY158.46.

Brent oil was quoted at USD93.82 a barrel at midday in London on Thursday, rising from USD92.40 late Wednesday, as tensions between Washington and Tehran remained elevated.

US President Donald Trump threatened "crushing economic warfare" against Iran, while Tehran dismissed the threat as a "diversion" and warned such action "will only bring further defeat".

Iran's Foreign Ministry, meanwhile, said the US blockade of Iranian ports and the closure of the Strait of Hormuz had made importing goods into the country "considerably more difficult" and contributed to rising prices.

In European equities on Thursday, the CAC 40 in Paris was down 0.4%, while the DAX 40 in Frankfurt was down 0.5%.

Data showed construction activity in the eurozone weakened in June.

Eurostat said seasonally adjusted construction output in the single-currency area fell 1.3% in June from May, following a 0.2% increase the previous month. Across the EU, construction output declined 1.0% month-on-month after a 0.1% rise in May.

On an annual basis, construction production fell 0.7% in the eurozone, while rising 0.2% across the EU.

Within the euro area, building construction fell 0.9% from May, civil engineering declined 1.4% and specialised construction activities dropped 1.8%.

Among member states for which data were available, Slovakia recorded the steepest monthly decline at 4.6%, followed by Hungary at 3.9% and France at 2.9%. Romania posted the strongest growth at 4.9%, followed by Sweden at 2.0% and the Netherlands at 1.0%.

Separately, data showed China remained Germany's largest trading partner in the first half of 2026, with imports and exports between the two countries totalling EUR125.5 billion between January and June.

China remained ahead of the US, where trade totalled EUR123.7 billion, and the Netherlands at EUR109.3 billion.

The US nevertheless remained Germany's most important export destination. German goods exports to the US totalled EUR73.1 billion in the first half, although this was 6.1% lower than a year earlier.

Exports of motor vehicles and motor vehicle parts to the US fell 17%.

Stocks in New York were called mixed. The Dow Jones Industrial Average was called down 0.1%, the S&P 500 index marginally lower, and the Nasdaq Composite marginally higher.

The yield on the US 10-year Treasury was quoted at 4.68%, widening from 4.66%. The yield on the US 30-year Treasury was quoted at 5.22%, widening from 5.20%.

Gold was quoted at USD4,490.52 an ounce, higher than USD4,483.13 on Wednesday.

Still to come on Thursday's economic calendar, the US releases weekly jobless claims, while Canada publishes producer price inflation.

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