𝓤𝓷𝓲𝓽𝓮𝓭 𝓝𝓮𝔀𝓼

The FTSE 100 fell on Wednesday as investors awaited a hoped for resumption in peace talks between the US and Iran.

The FTSE 100 closed down 49.48 points, 0.5%, at 10,559.58. The FTSE 250 ended 58.70 points lower, 0.3%, at 22,665.59, but the AIM All-Share rose 5.45 points, 0.7%, to 796.02.

Russ Mould, investment director at AJ Bell, said investors “seem happy to dip their toe in the water again, but they’re not diving in headfirst and loading up on stocks”, as a “slight sense of nervousness” remains over a successful outcome from peace negotiations.

President Donald Trump on Tuesday said a second round of US-Iran talks could take place “over the next two days”, fuelling hopes for a deal that would reopen the Strait of Hormuz and allow crude to flow again.

Senior Pakistan sources told AFP the country was working to bring the two sides back together, with one saying negotiators were working to extend the current two-week ceasefire.

However, a US official told AFP that the US has not formally agreed to extend its two-week ceasefire with Iran.

“There is continued engagement between the US and Iran to reach a deal,” the official said.

“Overall, investors appear convinced that the war will soon be over. Whether the Strait of Hormuz will operate as it did before hostilities began is another matter.

“It’s quite possible that President Trump leaves that to Europe and China to sort out,” David Morrison, at Trade Nation, commented.

Brent oil traded lower at 95.40 dollars a barrel on Wednesday afternoon, compared to 96.28 dollars at the time of the equities close in London on Tuesday.

In European equities on Wednesday, the Cac 40 in Paris closed down 0.6%, and the Dax 40 in Frankfurt rose 0.1%.

Paris underperformed as shares in luxury goods manufacturers Kering and Hermes fell 9.3% and 8.2% respectively after first quarter sales fell short of market expectations.

The falls put pressure on FTSE 100-listed Burberry which eased 2.2%.

In New York, markets were mixed. The Dow Jones Industrial Average was down 0.3%, the S&P 500 was 0.5% higher, and the Nasdaq Composite advanced 1.0%.

The yield on the US 10-year Treasury stretched to 4.29% on Wednesday from 4.28% on Tuesday. The yield on the US 30-year Treasury widened to 4.89% from 4.88%.

Away from the Middle East, Mr Trump renewed pressure on Federal Reserve chair Jerome Powell, threatening to fire the central bank chief if he stayed beyond his mandate.

Mr Powell’s term at the helm of the Fed ends in May, and Mr Trump has repeatedly lashed out at him for not cutting interest rates more aggressively.

“I’ll have to fire him,” Mr Trump told Fox Business, if Mr Powell “is not leaving on time.”

The pound firmed to 1.3577 dollars on Wednesday afternoon from 1.3571 on Tuesday. Against the euro, sterling was flat at 1.1502 euros from 1.1503.

On the FTSE 100, Entain rose 4.9% ahead of Thursday’s first quarter trading statement and following Tuesday’s update from 50% owned US joint venture, BetMGM.

“We expect more evidence of strategic progress,” analysts at Peel Hunt said ahead of the trading news as it upgraded the Ladbrokes owner to “buy” from “add”.

Barratt Redrow rallied 3.5%, but remained 31% lower year-to-date, as it reiterated full-year guidance for home completions and adjusted pretax profit.

The Leicestershire-based housebuilder said it is being “more selective” on land purchases given the Middle East crisis and the likely impact on mortgage rates and build cost inflation.

Standard Life climbed 2.1% as it struck a £2 billion cash and shares deal to acquire Aegon Europe’s UK insurance and pensions operations.

The Edinburgh-based insurance, savings and retirement products firm, formerly called Phoenix Group Holdings, said Aegon will become a “new strategic shareholder and asset management partner” with a stake of just over 15%.

The deal delivers a total net synergy value of £800 million, including £100 million of run-rate pretax cost synergies and £340 million of one-off capital synergies.

Standard Life said the acquisition will lead to £160 million operating cash generation and £190 million adjusted operating profit, with a mid-single digit accretive to adjusted operating earnings per share by 2029.

Panmure Liberum said: “Overall, this looks like a good deal, although there will be questions on why the expense and capital synergies take five years to fully realise; we would ordinarily expect this to be achieved in 3 years.”

On the FTSE 250, Rank soared 18% after a positive trading update.

The owner of Grosvenor Casino and Mecca Bingo said like-for-like net gaming revenue for the third quarter ended March grew 5% to £205.4 million year-on-year.

It expects full-year underlying like-for-like operating profit to be at least £68 million, compared to £63.7 million in the year to June 2025.

Shore Capital analyst Greg Johnson said this was £3 million above his current estimate.

Saga was also in the green climbing 5.5%, after swinging to an annual profit, underpinned by improved performances in its Travel and Insurance businesses.

The provider of products and services for people over 50 said pretax profit amounted to £2.1 million in the financial year to January 31, swinging from a loss of £160.2 million a year prior.

Chief executive Mike Hazell called it a “transformational” year.

The biggest risers on the FTSE 100 were Entain, up 27.20p at 585.00p, Barratt Redrow, up 9.00p at 267.30p, ICG, up 57.00p at 1,781.00p, Autotrader, up 15.20p at 495.30p and Experian, up 74.50p at 2,735.50p.

The biggest fallers on the FTSE 100 were Imperial Brands, down 103.50p at 2,829.50p, Airtel Africa, down 11.80p at 360.80p, Fresnillo, down 112.00p at 3,579.00p, GSK, down 59.00p at 2,131.00p and Associated British Foods, down 47.50p at 1,828.50p.

Thursday’s global economic calendar has slew of data from China overnight, including retail sales, industrial production and GDP.

This is followed by eurozone CPI figures, UK GDP data and US initial jobless claims numbers.

Thursday’s local corporate calendar has full-year results from food retailer Tesco and a trading statement from pest control specialist Rentokil Initial.