The FTSE 100 was trading little changed on Wednesday despite the US President threatening to attack Iran if they don’t agree to a deal.
This follows the news that US allies in the Middle East urged not to launch strikes yesterday and underscores the unpredictability of the US President, which fuels uncertainty in markets.
The FTSE 100 had started the session in the red before rallying to trade almost flat at the time of writing.
“The latest ultimatum to Tehran from President Trump has done little to quell investor nervousness and oil prices remain above the $110 per barrel mark,” AJ Bell investment director Russ Mould.
“US stocks fell on Tuesday as investors reacted to rising government bond yields which reflect growing fears about inflation and the knock-on effect on interest rates.
“There was some modest relief on the inflation front as UK CPI came in lower than expected, but this relief is likely to be temporary unless the Strait of Hormuz can be reopened in the near future. Utility, mining, defence and energy stocks were the bright spots in London, while retailers were among those on the back foot.”
There was no visible evidence of any positive reaction to inflation data in UK stocks beyond a minor bid in cyclical names.
Marks & Spencer was the FTSE 100’s top riser after releasing full-year results that showed the retailer bounced back from its cyber attack in the second half.
“It was a year of two halves for Marks & Spencer (M&S), with significant operational disruption from the cyber incident in the first, followed by a return to sales and profit growth in the second,” said Aarin Chiekrie, equity analyst, Hargreaves Lansdown.
“Granted, full-year sales growth was inflated by the consolidation of its half-owned joint venture, Ocado Retail. But stripping out this impact, total sales were still in positive territory, rising 1.9% to £14.2bn.”
Experian shares were the worst performers of the session after the credit agency failed to convince investors that it had a viable growth strategy amid pressure from AI.
Adam Vettese, market analyst for eToro, says: “Experian’s full year results this morning were solid but uninspiring, landing in line with recent trading updates and at the upper end of guidance. Organic growth held steady, margins expanded modestly and CEO Brian Cassin pointed to ongoing AI momentum through the Ascend platform.
“Investors appear to have been hoping for a sharper acceleration or more bullish 2027 outlook, instead they got more of the same. Softer UK and EMEA credit markets continue to weigh on sentiment.”
Experian shares were down 4% at the time of writing.