FTSE 100 edges lower as oil rises and investors await ECB decision

Britain's FTSE 100 was little changed on Thursday.

Gains in energy shares were offset by weakness in precious metal miners.

Investors also remained focused on corporate earnings and the European Central Bank's latest policy decision.

The blue-chip FTSE 100 index fell 0.04% to 10,712.83 points by 1050 GMT.

The mid-cap FTSE 250 index also declined.

It slipped 0.3% during the session.

The market remained cautious as investors assessed developments in commodity markets.

Higher oil prices supported energy stocks.

However, falling gold prices weighed on precious metal miners.

The European Central Bank's policy decision was also expected to remain a key focus for investors.

The central bank was widely expected to leave interest rates unchanged.

However, it was expected to keep the possibility of another rate increase in September open.

Energy shares gain as oil prices rise

Energy stocks led gains among sectors on the FTSE 100.

Oil prices moved higher after Yemen's Houthis said they had struck two Saudi oil tankers.

The development raised concerns that disruption to global oil supplies could spread beyond the Strait of Hormuz.

The concerns helped push oil prices higher and supported shares in the energy sector.

The rise in energy stocks helped limit the broader decline in the UK market.

However, gains remained modest as investors continued to assess inflation risks and the potential impact on interest rates.

Precious metal miners lead sectoral declines

Precious metal mining stocks were among the biggest losers during the session.

The sector fell 2.5%, making it the worst-performing sectoral group.

Gold prices declined amid concerns about inflationary pressures.

Investors were concerned that persistent inflation could encourage the US Federal Reserve to raise interest rates later this year.

The prospect of higher interest rates weighed on gold prices.

The weakness in the precious metal market, in turn, pressured mining stocks.

The decline in the sector offset gains elsewhere in the market.

It also contributed to the FTSE 100's slightly negative performance during the session.

EasyJet shares jump after earnings

Among individual stocks, takeover target easyJet was one of the stronger performers.

Its shares rose 5.5% after the airline reported a 70% decline in third-quarter profit.

The company said the Iran war had contributed to volatile fuel prices.

It also said the conflict had made travellers more cautious.

Despite the sharp decline in profit, easyJet's earnings were above analysts' estimates.

The airline also indicated that conditions could become clearer as it entered the peak summer travel period.

The results helped lift investor sentiment toward the airline.

Its shares advanced despite the significant decline in quarterly profit.

Jupiter fund management falls despite profit growth

Jupiter Fund Management shares moved in the opposite direction.

The asset manager's stock fell 2.6%.

The decline came despite the company reporting a 67% increase in first-half pre-tax profit.

The market reaction remained negative despite the strong reported growth in profit.

Howden Joinery maintains annual outlook

Howden Joinery shares gained 1.6%.

The kitchen supplier maintained its annual outlook.

The company also said it had hedged its fuel costs through the end of the year.

The update provided some support to its shares during Thursday's trading session.

UK government announces business rate measures

Away from company earnings, Britain's new prime minister, Andy Burnham, said business rates for pubs, clubs and live music venues would be reduced by 20% from April.

The announcement represented his third measure in three days aimed at supporting households and businesses.

The move came as investors continued to monitor broader economic pressures alongside developments in financial markets.

With inflation concerns still influencing expectations for interest rates, markets remained focused on central bank policy and the direction of commodity prices.

Overall, the FTSE 100 remained broadly stable on Thursday.

Strength in energy shares helped cushion losses among precious metal miners.

Higher oil prices and inflation concerns continued to weigh on corporate earnings while awaiting the European Central Bank's policy decision.