London stocks edge lower as elevated oil prices stoke inflation concerns

Sept 10 (Reuters) - London shares hovered around one-month lows on Thursday as oil prices continued to fuel inflation worries in a week packed with economic data, while energy stocks helped keep a lid on losses.

The blue-chip FTSE 100 index fell 0.4% to 10,627.80 points by 0946 GMT, while the midcap FTSE 250 slipped 0.38%.

• Brent crude futures were trading over $100 a barrel as the U.S. and Iran's continued attacks on shipping prompted markets to brace for supply disruptions. [O/R]

• Energy stocks led gains, rising 0.8%, with Shell and BP extending their rally, up 0.7% and 1%.

• U.S. President Donald Trump said he expected the conflict to end after the November U.S. midterm elections, but the remark did little to calm investors.

• Banks were the biggest drags on the index. HSBC declined over 1.8% after it announced its CFO Pam Kaur would step down in 2027.

• Both precious and industrial metal miners declined, with Rio Tinto and Anglo American down 0.9% and 1.5%, respectively, even as metal prices gained. [MET/L] [GOL/]

• British government bond yields rose, with the benchmark 10-year bond hitting a 19-year high and shorter-dated ones at their highest since late 2023.

• Traders await U.S. inflation reports and UK economic growth data this week, which could impact interest rate expectations in these economies.

• Markets are pricing in a 60% chance the U.S. Federal Reserve will hike rates next week but widely expect the Bank of England to hold, as per LSEG-compiled data.

• Associated British Foods bottomed the FTSE 100 with an 11.8% slide after it forecast a decline in fourth-quarter like-for-like sales at budget fashion chain Primark.

• Animal genetics company Genus fell 4.9% after its annual adjusted revenue fell short of analysts' consensus estimates.

• British e-commerce group THG lost 7.1% after warning of a slowdown in its quarterly revenue growth due to new EU import duties.

(Reporting by Anand Gopal and Purvi Agarwal in Bengaluru; Editing by Vijay Kishore)