MARKET REPORT: Oil stocks and insurers brace for Hurricane Beryl

The early start of the hurricane season has had an impact on financial markets.

With Hurricane Beryl wreaking havoc, oil prices rose to a two-month high above $87 a barrel amid fears of an impact on production.

That lifted BP’s share price by 1.3 percent, or 6.2 pence, to 484.7 pence, and Shell’s by 0.4 percent, or 12 pence, to 2,869.5 pence.

The increase came after Shell announced plans to pause construction of a biofuels plant in Rotterdam, the Netherlands.

The move is part of a broader strategy to simplify operations and increase profitability.

Concerns over Hurricane Beryl also hit London-listed insurers as investors worried about potential payouts.

Beazley fell 5.2 percent, or 36 pence, to 650.5 pence, Hiscox fell 2.3 percent, or 26 pence, to 1,108 pence and Lancashire Holdings fell 3.8 percent, or 23 pence, to 578 pence.

Tryfonas Spyrou, an analyst at commercial bank Berenberg, said that “this year’s hurricane season is expected to be very active.”

In the broader market, the FTSE 100 fell 0.56 per cent, or 45.56 points, to 8,121.2 and the FTSE 250 was down 0.14 per cent, or 27.61 points, at 20,194.47.

Europe’s major indexes also sank amid lingering concerns over the French election.

Marine Le Pen’s right-wing National Rally party won the first round of voting, causing a major headache for President Emmanuel Macron.

It is not yet clear whether he will win a majority in Sunday’s run-off vote, but the uncertainty is enough to shake confidence in financial markets.

The CAC 40 fell 0.3 percent in Paris, Germany’s main benchmark index lost 0.7 percent and Spain’s main market fell 1.3 percent.

Investors were also keeping a close eye on the latest inflation data from the eurozone. While the headline rate fell from 2.6% in May to 2.5% in June, prices in the services sector continued to rise sharply, raising fresh doubts about the outlook for interest rates.

Back in London, GSK suffered another blow when a US judge dismissed its application regarding the Zantac lawsuits.

The UK pharmaceutical giant wants to appeal a ruling last month that opened the door to more than 70,000 lawsuits alleging the heartburn drug causes cancer.

However, a Delaware judge has rejected this request, meaning GSK and other drugmakers are likely to be hit with a wave of legal action.

GSK said: “The scientific consensus remains that there is no consistent or reliable evidence that ranitidine increases the risk of any type of cancer.”

But the company’s latest setback comes just a week after the FTSE 100 group lost out to Pfizer in a deal that will see the US group supply millions of respiratory vaccines in England and Northern Ireland. The shares fell 1.5 per cent, or 22.5 pence, to 1,503.5 pence.

Wizz Air also came under pressure after the airline carried fewer passengers last month compared with the same period a year earlier. Shares fell 3.9 percent, or 84 pence, to 2,066 pence.

But British Airways owner IAG was among the risers, gaining 0.2 percent, or 0.4 pence, to 164.3 pence.