London stocks dip as oil drags; defence index hits record high

London's FTSE 100 edged lower on Thursday, ⁠pressured by weakness in oil stocks, even as defence shares surged to a record high on rising military budgets and geopolitical tensions. The blue-chip FTSE 100 slipped 0.3% by 1040 GMT and the domestically focused mid-cap index was 0.4% lower.

London's FTSE 100 edged lower on Thursday, ⁠pressured by weakness in oil stocks, even as defence shares surged to a record high on rising military budgets and geopolitical tensions.

The blue-chip FTSE 100 slipped 0.3% by 1040 GMT and the domestically focused mid-cap index was 0.4% lower. Shell ​dropped 2.6% after the oil major narrowed its projected range for fourth-quarter liquefied natural gas production, as it ‍warned of a loss in its chemicals business. Rival BP was down 0.6%.

Oversupply concerns, with forecasts of a large surplus in early 2026 have stirred concern for the energy sector, even as oil prices inched higher on the day. Defence stocks, on the other hand, ⁠rose ‌to a record high, joining ⁠a rally in shares of European and U.S. peers, after President Donald Trump called for higher U.S. defence spending.

BAE systems gained 6.1%, while ‍Chemring and Avon Technologies were up about 1% each. U.S. strikes on Venezuela have charged up geopolitical concerns, lifting defence shares ​earlier this week. Meanwhile, British house prices rose by a slower-than-expected 0.3% in the 12 months to December, ⁠the weakest annual increase since March 2024, as economic and tax uncertainty overshadowed the market at the end of the year, mortgage lender Halifax ⁠said.

Among individual stocks, Associated British foods slumped 11.3% after the Primark-owner warned annual profit would fall after a sharp slowdown at its Primark fashion chain and weaker U.S. demand hit its food businesses. Greggs fell 7.7% ⁠after the fast food chain warned subdued consumer confidence meant it would likely see flat profit this year, despite ⁠a pick-up in sales ‌in the Christmas quarter.

Tesco was down 4.9% after the food retailer forecasted full-year profit at the upper end of its guidance as it reported a 3.2% rise in ⁠underlying UK sales for the key Christmas trading period.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)