Marks & Spencer led the FTSE 100 risers on Wednesday as the index rallied into the close amid renewed optimism over US-Iran peace talks and better-than-expected UK inflation figures. The FTSE 100 closed up 101.79 points, or 1.0%, at 10,432.34, having earlier dipped to 10,279.07. The FTSE 250 ended 270.41 points higher, up 1.2%, at 22,838.38, while the AIM All-Share slipped 0.81 of a point, or 0.1%, to 792.81.
US-Iran Peace Talks Boost Sentiment
The late stock gains came after US President Donald Trump announced that the United States is in the “final stages” of negotiations with Iran. According to AFP, Trump told reporters on Wednesday, “We’re in the final stages of Iran, we’ll see what happens. We’ll either have a deal or we’re going to do some things that are a little bit nasty. But hopefully that won’t happen.”
These comments pushed Brent crude oil prices lower, with July delivery trading at $105.26 per barrel on Wednesday, down from $110.72 at Tuesday’s London close. Oil had remained elevated after Iran’s chief negotiator, Mohammad Bagher Ghalibaf, accused the US of seeking to restart the war. Iran’s Revolutionary Guards warned that any further US or Israeli attacks would expand the conflict beyond the region.
UK Inflation Data Eases Pressure on Bank of England
Investors in London also digested UK inflation figures from the Office for National Statistics, which showed consumer prices rose 2.8% in April, cooling from 3.3% in March and below the consensus forecast of 3.0%. Core inflation, excluding food, energy, alcohol, and tobacco, fell to 2.5% from 3.1%, also below expectations of 2.6%. Annual service price inflation eased markedly to 3.2% from 4.5%.
However, analysts at Bank of America warned that the April print may represent the trough, as rising energy prices could push inflation higher in coming months. They noted that some of the downside surprise was driven by erratic airfares and packaged holidays, which should reverse. Kallum Pickering, chief economist at Peel Hunt, said the figures ease pressure on the Bank of England to tighten policy in response to Iran-related energy price rises.
M&S Leads FTSE 100 After Annual Results
Marks & Spencer climbed 6.6% after reporting annual results that showed the impact of a 2025 cyberattack, which forced the retailer to suspend online sales for about six weeks. Pre-tax profit fell 29% to £364.6 million for the 52 weeks to March 28, compared with £511.8 million the prior year. Adjusted pre-tax profit dropped 24% to £671.4 million, but beat Visible Alpha consensus of £640.3 million. JPMorgan analyst Georgina Johanan described the update as “better than feared.” CEO Stuart Machin called it an “extraordinary year,” adding that a resilient balance sheet allowed the company to absorb the disruption cost without compromising financial health. AJ Bell investment director Russ Mould said the cyberattack now looks like a “blip” in the retailer’s recovery story.
Other Market Movers
Weir Group rose 4.0%, supported by positive research notes from UBS and JPMorgan. UBS estimated exposure to oil sands, coal, and Micromine could contribute an additional 4.7% to growth. Conversely, Experian fell 3.0% as in-line results and a new share buyback failed to excite investors. On the FTSE 250, RS Group surged 15% after posting improved profit and announcing a £100 million share buyback programme. The industrial distributor said it sees “improving momentum” in financial 2027, with most major markets returning to low single-digit growth.
In currency markets, the pound traded at $1.3456, up from $1.3396 on Tuesday, and at €1.1568, up from €1.1549. Gold prices rose to $4,536.32 per ounce from $4,502.96. European markets also gained, with the CAC 40 in Paris up 1.7% and the DAX 40 in Frankfurt up 1.4%. In New York, the Dow Jones, S&P 500, and Nasdaq Composite were all higher.
Outlook
Looking ahead, Thursday’s global economic calendar includes eurozone consumer confidence and trade data, US weekly jobless claims, and composite PMI reports. UK corporate results are due from BT, Sage Group, and easyJet.
