Not even continuing strength in the oil and gas market and the resulting upswing in BP and Shell shares could save the FTSE 100 from a fall on Thursday.
Investor nervousness is perfectly understandable as we won’t know the full impact of the conflict sparked by Russia’s invasion of Ukraine for some time.
“However, one thing is already clear, it has supercharged the inflationary pressures already facing the globe, while at the same time blunting central banks’ response, as they will be wary of being too aggressive on rates at a time of such uncertainty,” says AJ Bell investment director Russ Mould.
“Big share price falls for ITV, as investors baulk at the potential costs associated with its newly unveiled ITVX streaming platform, as well as Melrose Industries and Admiral on their latest results also helped put the index under pressure.
“This offset strength in the wider resources sector and a strong showing from London Stock Exchange Group following the release of its own numbers.
“The big fall for Melrose seemed at odds with results which were ahead of expectations, however the decision to delay the return of capital from the sale of several businesses in 2021 spoke volumes.
“Referencing Russia’s invasion of Ukraine in its rationale for the move, management are clearly very concerned about what might happen as a result of the war.
“London Stock Exchange was much more confident on its ability to ride out the crisis pointing to the fact that its operations in Russia and Ukraine account for less than 1% of total income.
“The profit and revenue growth announced this morning are genuinely impressive and help to vindicate the acquisition of data provider Refinitiv.”