iShares MSCI United Kingdom Small-Cap ETF

EWUS

Market cap $42.9M

London's FTSE 100 index moved higher on Thursday, supported by a rebound in financial stocks, although gains remained constrained by ongoing tensions in the Middle East and growing investor concerns over rising corporate spending on artificial intelligence. The blue-chip FTSE 100 climbed 0.6% to 10,316.05 points by 0917 GMT.

UK equity markets remained close to three-week lows on Wednesday as investors weighed ongoing geopolitical risks in the Middle East, corporate earnings developments, and the potential implications of upcoming US inflation. The benchmark FTSE 100 and the mid-cap FTSE 250 indexes both posted modest gains in early trading.

Ten years after Brexit, analysis published by Bloomberg on Tuesday shows that the UK's vote to leave the European Union may have already cost the British economy between 2% and 4% of gross domestic product. Dan Hanson of Bloomberg Economics explains.

Consumers in Britain increased their spending in May after reducing it in April, but their expenditure on travel dropped for ​a third month in a sign of caution over the ‌economic impact of the Iran war, surveys showed on Tuesday.

U.K. businesses polled in May expected to raise their prices at a faster rate, but wage increases were seen slowing, according to a Bank of England survey released Friday.

Deutsche Bank's Chief U.K. Economist Sanjay Raja discusses challenges in the labour market, saying companies are investing in digitalisation, automation and AI instead of hiring people.

The UK's benchmark FTSE 100 index fell to its lowest level in more than two weeks on Thursday, weighed down by sharp declines in Asia-focused lenders and miners after reports of tighter offshore banking restrictions in China. Lower crude oil prices also dragged energy stocks lower, adding to the market's weakness.

Rick Gardner of of RGA Investments says higher defense spending commitments across Europe could support the region's defense stocks, which remain relatively cheaper than U.S. peers. He also sees upside for U.S. LNG exporters, producers and refiners if Europe increasingly looks beyond the Gulf region for energy supplies.

The UK's main stock indexes started June on a weaker footing on Monday as investors assessed the economic impact of the ongoing Middle East conflict. Gains in several merger and acquisition-related stocks helped limit broader market losses.

As political uncertainty grows in the United Kingdom, investors are increasingly focused on the country's fiscal outlook and rising government borrowing costs. Bloomberg Opinion Columnist John Authers says concerns over spending, debt, and political instability are pushing gilt yields higher, reviving memories of past market crises that helped topple governments from Harold Wilson to Liz Truss.