The FTSE 100 closed down 49.48 points, or 0.5%, at 10,559.58 on Wednesday, while the FTSE 250 slipped 58.70 points to 22,665.59. The AIM All-Share bucked the trend, rising 0.7% to 796.02, as investors adopted a cautious stance amid continuing uncertainty over US-Iran negotiations.
Russ Mould, investment director at AJ Bell, noted that traders are “happy to dip their toe in the water again, but they’re not diving in headfirst”, with a “slight sense of nervousness” lingering over the outcome of peace talks. President Donald Trump said on Tuesday that a second round of talks could occur “over the next two days”, yet a US official told AFP that Washington has not formally agreed to extend its two-week ceasefire with Iran. Brent crude traded lower at $95.40 a barrel, down from $96.28 at Tuesday’s London close.
In Paris, the CAC 40 fell 0.6%, dragged down by luxury goods makers Kering and Hermès, whose shares dropped 9.3% and 8.2% respectively after first-quarter sales missed expectations. The declines put pressure on London-listed Burberry, which eased 2.2%. Frankfurt’s DAX 40 edged up 0.1%.
Across the Atlantic, markets were mixed, with the Dow Jones down 0.3% but the S&P 500 and Nasdaq Composite gaining 0.5% and 1.0% respectively. President Trump renewed his attack on Federal Reserve chair Jerome Powell, telling Fox Business he would “have to fire him” if Powell does not leave when his term ends in May. Sterling strengthened slightly to $1.3577, while remaining flat against the euro at €1.1502.
On the FTSE 100, Entain rose 4.9% ahead of its first-quarter trading update, after analysts at Peel Hunt upgraded the Ladbrokes owner to “buy”. Barratt Redrow advanced 3.5% despite reiterating its cautious outlook, citing the Middle East crisis. Standard Life climbed 2.1% after announcing a £2 billion deal to acquire Aegon Europe’s UK insurance and pensions operations, with the Edinburgh-based firm expecting significant synergies.
