Oct 2 (Reuters) – The UK’s benchmark FTSE 100 stock index edged higher on Wednesday, led by energy shares as oil prices jumped on concerns about tensions in the Middle East, though investors were cautious as they assessed the risk of escalating conflict.
The blue-chip FTSE 100 (.FTSE), opens new tab was up 0.2%, while the more domestically focussed midcap FTSE 250 index (.FTMC), opens new tab was down 0.6%.
Heavyweight oil and gas shares (.FTNMX601010), opens new tab rose 1.6%, closing at their highest in more than a week, as oil prices rose on concerns that crude output from the Middle East could be impacted following Iran’s biggest ever military blow against Israel.
Still, most investors seemed to avoid panic selling.
“Overall I’d say market reaction has been pretty muted. You saw some safe haven buying yesterday but a lot of that’s being given back today,” said Richard Flax, chief investment officer at Moneyfarm.
“Oil prices have gone…
