Shell & BP weigh on FTSE 100 as mid-cap stocks offer a glimmer of strength
The UK stock market started the week on a cautious note, with the FTSE 100 closing nearly flat, reflecting global investor hesitation ahead of the anticipated U.S. tariff decision expected in early August. Meanwhile, the FTSE 250 inched slightly higher, up 0.2%, buoyed by better-than-expected corporate earnings among mid-cap firms.
📊 FTSE Performance Snapshot
- FTSE 100: ⬇️ -0.19% (Closed at 8,806.53)
- FTSE 250: ⬆️ +0.2%
- Energy Sector: ⬇️ -2.6%
- Financials & Industrials: ⬆️ Modest gains
The market mood remains tentative as investors digest the uncertain trade outlook and await developments from both the White House and Beijing.
🔥 Energy Stocks Take a Hit
Two of the UK’s biggest energy firms — BP and Shell — dragged the FTSE 100 down after releasing cautious forward guidance.
- Shell warned of declining refining margins and slower trading performance in Q3.
- BP shares fell on the back of weaker-than-expected output forecasts, especially in oil trading and downstream refining.
This pulled down the energy sector by more than 2.6%, making it one of the worst-performing sectors on the day.
🧱 Mid-Caps Hold Firm: The Plus500 & Weir Group Effect
While the FTSE 100 wobbled, mid-sized UK firms offered some resilience:
- Plus500, the trading platform, posted strong Q2 revenue figures
- Weir Group, a mining equipment firm, saw a sharp rebound in share price after raising earnings guidance
This renewed investor confidence in domestic-facing companies, which are perceived as less exposed to global trade risk and more linked to the UK economy’s internal recovery.
🌍 Global Trade Tensions: Tariffs Loom in the Background
Markets were jittery following renewed signals from the U.S. that global tariffs of 10% on key imports — especially from China and the EU — may be announced by August 1st.
Although delayed, the mere prospect has created volatility across European and Asian markets, with investors unsure about:
- Which sectors will be hit hardest
- Whether the UK will face direct or indirect blowback
- How central banks might respond if growth slows further
💡 What It Means for UK Investors
This market movement reflects broader investor uncertainty — but also opportunities:
- Short-term caution remains warranted in energy and multinational-heavy FTSE 100 stocks
- Mid-cap companies, particularly those with strong UK exposure and solid Q2 earnings, may continue to outperform
- Traders should closely watch the U.S. tariff timeline, OPEC+ decisions, and UK economic data releases later this week
⚠️ Disclaimer: This article is for informational purposes only and does not constitute investment advice. Always consult a licensed financial advisor before making investment decisions.
