An early start to 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 a hit to production.

That lifted BP 1.3 per cent, or 6.2p, to 484.7p and Shell by 0.4pc, or 12p, to 2869.5p.

The rise came as Shell announced plans to pause construction of a biofuel plant in Rotterdam in the Netherlands.

The decision is part of a wider strategy to simplify operations and increase returns.

Concerns over Hurricane Beryl also weighed on London-listed insurers as investors fretted over possible payouts.

Beazley slumped 5.2 per cent, or 36p, to 650.5p, Hiscox sank 2.3 per cent, or 26p, to 1108p and Lancashire Holdings dropped 3.8 per cent, or 23p, to 578p. 

Tryfonas Spyrou, an analyst at merchant bank Berenberg, said this year’s ‘hurricane season is expected to be very active’.

On the wider market, the FTSE 100 fell 0.56 per cent, or 45.56 points, to 8121.2 and the FTSE 250 inched down 0.14 per cent, or 27.61 points, to 20,194.47.

Europe’s main indexes also sank amid ongoing concerns about elections in France.

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

Stock Watch - Shoe Zone

Shares in Shoe Zone slipped after warning of lower profits amid subdued sales and high shipping costs.

The High Street chain said it expects profit for the financial year to October 2 to be £10million or above. 

Its original profit forecast for the year was £15.2million. 

This was revised down to £13.8million at its interim results in June. ‘Unseasonal weather conditions’ hit spring and summer sales from April to June.

Shares slumped 1.5 per cent, or 17.5p, to 135p.

It is not yet clear whether or not she will win a majority in the second round on Sunday, but the uncertainty is enough to hit confidence on the financial markets.

The Cac 40 fell 0.3 per cent in Paris, the main benchmark in Germany lost 0.7 per cent and Spain’s top market dropped 1.3 per cent.

Investors were also poring over the latest inflation data from the eurozone. While the headline rate dipped from 2.6 per cent in May to 2.5 per cent in June, prices in the services sector continued to rise strongly, casting fresh doubt over the outlook for interest rates.

Back in London, GSK suffered another blow as a US judge dismissed its request over Zantac lawsuits. 

The UK pharmaceutical giant wants to appeal a ruling made last month which opened the way for more than 70,000 lawsuits that allege the heartburn drug caused cancer.

However, a Delaware judge rebuffed this request, meaning that GSK and other drug makers are likely to be hit with a tidal 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 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 provide millions of respiratory jabs in England and Northern Ireland. Shares fell 1.5 per cent, or 22.5p, to 1503.5p.

Wizz Air also came under pressure after the airline flew slightly fewer passengers last month compared to the same period the year before. The stock dipped 3.9 per cent, or 84p, to 2066p.

But British Airways owner IAG was among the risers, gaining 0.2 per cent, or 0.4p, to 164.3p.