- FTSE 100 down 79 points at 10,425
- Oil up as US carries out further strikes on Iran
- Ex-dividends include Nat Grid, Severn Trent, AB Foods
5.30pm: FTSE slumps
London stocks came under pressure on Thursday, with the FTSE 100 down 79 points at 10,425. Across the Atlantic, hopes of a US-Iran deal sent stocks to record highs, with the Nasdaq up 7%, the S&P 500 up 0.5% and the Dow Jones edging 0.1% higher.
“Reports that the US and Iran have agreed on a 60-day framework to extend the ceasefire and restart talks over Tehran’s nuclear programme have provided markets with cautious optimism - propelling several US stock indices to fresh records - although the proposed agreement still requires final approval from President Trump before it can formally proceed,” IG chief technical analyst Axel Rudolph said.
“US data was mixed with US PCE inflation coming in lower-than-expected but remaining elevated, a rise in personal spending having halved from the previous month, and GDP growth being revised lower in Q1."
4.11pm: Show me the deal
London's blue-chips are not showing much confidence in the reports that Donald Trump is mulling whether to accept a deal with Iran.
UK utilities, retailers, banks and consumer names are all firmly in the red with less than half an hour of trading to go.
Wall Street investors are showing more positivity, with the Nasdaq and S&P up 0.5% amd 0.4%.
3.57pm: Deals on latest mooted deal
Brent crude oil is down to $95 a barrel, its lowest in over a month, as reports say that Trump is sharing the proposed deal with other allies (read talking to Israel about it) before giving his backing.
Bonds are seeing demand too, sending yields lower on both sides of the Atlantic. The UK 10yr gilt is down to its lowest in around six weeks.
Pakistan's foreign minister is flying to Washington to meet US counterpart Marco Rubio tomorrow, with some media saying this is an attempt to speed up the negotiations.
The latest draft deal includes the Strait of Hormuz being opened to commercial shipping, the US lifting its blockade of Iranian port, and Iran gaining access to assets frozen under previous sanctions.
Per the Guardian, "the aim would be for commercial shipping in the strait to return to pre-war levels within 30 days and for negotiations envisaged to last as long as 60 days to commence on the future of Iran’s nuclear programme", including about its stockpile of highly enriched uranium, a suspension of further enrichment for an agreed number of years, and supervision by the International Atomic Energy Agency.
The paper says the agreement "would be deeply unpalatable for Israel, because it defers Iran making any firm nuclear commitments and requires a permanent ceasefire to include Lebanon".
3.39pm: Losses trimmed in London, US indices turn positive on 'Iran deal' report
Losses have been cut for many shares on some reports of a US-Iran deal, but markets are still sceptical enough to leave most European major indexes firmly in the red.
The FTSE 100 is now down 0.8% compared with a decline of more than 1.1% earlier in the session, with the Stoxx 600 trimming its decline to 0.4% from about 0.9% earlier, with similar for the DAX and other mainland European benchmarks.
Across the Atlantic, the S&P 500 and Nasdaq are both in green, but only up around 0.2%.
According to an Axios report (citing two White House sources and one from the Middle East), the US and Iranian negotiators "have reached an agreement", though President Trump still needs to approve the deal.
The agreement is to a "60-day memorandum of understanding to extend the ceasefire and launch negotiations on Iran's nuclear program".
Why it matters: The signing of the MOU would be the most significant diplomatic breakthrough since the war started, but a final agreement that tackles Trump's nuclear demands would still require further intensive negotiations.
The report says President Trump asked for “a few days” to decide whether to approve the proposed deal.
According to Axios, the draft memorandum of understanding includes an Iranian commitment not to pursue nuclear weapons, while the US would discuss sanctions relief and lift its naval blockade as part of a broader ceasefire framework.
2.51pm: Wall St opens lower
Early trading in New York sends the major indices into the red, as expected.
The Dow Jones and Nasdaq are both down in just under 0.2%, while the S&P 500 drops just a handful of points or less than 0.1%.
Fallers on the Nasdaq 100 are led by bitcoin buyer Strategy, software group Synopsys, and Chinese e-commerce company PDD Holdings.
Rail operator CSX, power producer Constellation Energy and infrastructure group Ferrovial also traded lower in early dealings.
3M and Salesforce are the Dow's biggest early fallers, while there are just nine names in green, including IBM, Chevron, Microsoft and Nvidia.
2.07pm: Salesforce, Marvell and Amazon
Some US stories ahead of the opening bell in New York.
April PCE price inflation was up 0.4% on the month, less than the 0.5% expected. Year-on-year, the inflation gauge was up 3.8% , in line with the average forecast.
Core PCE inflation was up 0.2% on the month and 3.3% on the year, both in line with consensus estimates.
Salesforce delivered a comprehensive first-quarter earnings beat last night, with revenue and profits comfortably ahead of expectations, but the shares are down 1.9% premarket.
The results, as the article goes, did little to settle the deeper debate about whether the company can survive the AI revolution it is simultaneously trying to lead.
Marvell Technology is going the other way, up 4.6% after revenues and earnings for its fiscal first quarter topped estimates, as the chipmaker cited exceptional AI-related bookings and raised its revenue outlook for both 2027 and 2028.
CEO Matt Murphy said: "We are seeing exceptional AI-related bookings, and as a result, we are significantly raising Marvell's revenue outlook for both fiscal 2027 and fiscal 2028 compared with the guidance we provided last quarter," Murphy said. "This improved outlook is being driven by strong demand across a broad set of Marvell solutions."
One of our most-read articles is on Amazon, where UBS says the stock is significantly underappreciated by Wall Street as artificial intelligence commitments pile up in its cloud division.
UBS forecasts AI will account for 26% of AWS revenue by the end of 2026, rising to 30% in 2027, underpinned by large contracts signed with both Anthropic and OpenAI.
1.13pm: Buy the inequality trade, says RBC
Consumer goods companies face a future where the middle-class shopper is steadily disappearing and brands must increasingly decide whether to serve the rich or the poor, according to a sweeping new note from RBC Capital Markets.
The 27-page report, titled “Stratified Society – What If…?”, argues that inequality is becoming a structural feature of the global economy rather than a cyclical one, driven by artificial intelligence, wealth concentration, ageing populations and uneven access to healthcare and education.
Analyst Nik Modi warns that the “K-shaped economy is structural and global” and says companies need “portfolio architectures that resemble barbells rather than ladders”.
Growth, he argues, will increasingly “accrue at the extremes, not the middle”.
Wealthy consumers will increasingly buy products linked to longevity and cognitive performance as older generations remain economically active well into their seventies and eighties. The analysts argues that ageing consumers will “not behave like they are in decline but rather will seek optimization”.
At the top end of the market are speculative products such as “mood chocolate” infused with calming supplements, nootropic non-alcoholic whiskey, personalised luxury skincare and “longevity-focused” dairy drinks.
At the other end of the market, RBC sees growing demand for ultra-low-cost essentials such as 10-cent toothpaste strips, shelf-stable nutrition blocks and concentrated sachet products aimed at increasingly cash-strapped consumers. “Sachets may not just be for emerging markets anymore,” the note says.
The biggest threat to established consumer brands, RBC argues, may come from technology platforms such as Amazon and Temu, whose algorithms and logistics networks could allow them to serve both ends of the “barbell-shaped distribution” at the same time.
12.32pm: FTSE takes leg lower
The FTSE 100 has slumped a bit lower as we move into the afternoon, in line with mainland European stocks.
Germany’s DAX is only down 0.5% compared to the 1.1% decline of the London index, while France’s CAC 40 has slipped 0.5% and the wider Euro Stoxx 600 is down 0.8%.
US futures remain in the red, with the tech-laded Nasdaq down the most, 0.5%, compared to 0.3% for the S&P 500 and 0.2% for the Dow Jones.
"The narrative has shifted for financial markets in the last 12 hours," says market analyst Kathleen Brooks at XTB, after US carried out strikes against Iran and Tehran launched an attack on a US airbase in Kuwait.
"These events have led to fears that the ceasefire is in jeopardy, and have dashed hopes for an imminent peace deal that reopens the Strait of Hormuz."
Oil price are 3% higher, with Brent above $97 and WTI topping $91.
US Treasury yields ramped up this morning, then eased, but have now started to climb again.
Today’s key US earnings updates include Costco, Dell, Autodesk, Dollar Tree, Best buy and Li Auto.
"Arguably the most significant release is the latest inflation update, core PEC," says David Morrison at Trade Nation.
"This has been trending higher since November last year and is expected to come in at 3.3% year-on-year, up from 3.2% in March. This used to be known as ‘the Fed’s preferred inflation measure’.
"But new Chair Kevin Warsh is understood to focus on a ‘trimmed mean’ version of CPI. Either way, investors have been pricing in the probability of rate hikes before year-end.
"So, today’s update could influence those expectations one way or another."
11.42am: More SSE views
Some other views on the only set of FTSE 100 results today.
"If the UK is to reduce its reliance on increasingly volatile global energy markets then SSE may play a role given its big investment in renewables and the electricity network," says AJ Bell investment director Russ Mould.
"The good news for shareholders and the rest of us is that the company’s major spending programme is progressing to plan.
"While the pressure on earnings from variable weather conditions is a reminder of one of the main drawbacks of renewables – namely their short-term unpredictability – management’s decision to deliver a meaningful hike in the dividend is a show of confidence in the outlook as it sticks with medium-term guidance.
"SSE was among the names to see some selling yesterday on news of the new energy price cap which created fears about pressure on margins and risks around higher bad debts. However, because it exited its retail energy operations several years ago it suffered less than some of its peers."
Aarin Chiekrie, equity analyst at Hargreaves Lansdown, says while earnings hit the top end of full-year earnings guidance, "this progress was offset by a large, expected decline in profitability in its Distribution business, with last year benefitting from a periodic inflation adjustment".
"That, and a dilutive £2bn equity raise in November 2025, saw the group’s earnings per share decline by 5% to 153.5p."
Looking ahead, he says he thinks SSE is "stepping into a new era of growth" with its £33 billion spending plans over the five years to 2030, marking a 300% uplift in its investment levels over the prior five years.
"Most of this total, around 80%, is set to be spent on its regulated UK electricity networks. We like the shift in investment focus towards networks, which should see its asset base grow by around 25% annually over the period.
"Not only is this division’s revenue power tied to the value of its asset base, but these revenues are also positively linked to inflation, providing valuable protection if macroeconomic conditions deteriorate."
11.11am: Manifold disputes conduct concerns
BP's recently sacked chairman Albert Manifold has accused the FTSE 100 oil giant of firing him without warning and rejected claims about his conduct.
The former CRH boss said in a statement: "In my 40-year working career, I have never once had accusations made against me such as those made in recent days. I dispute entirely this characterisation of my conduct."
BP announced on Tuesday afternoon that Manifold had left with immediate effect, eight months into the job, following "serious concerns" relating to governance standards, oversight and conduct.
In a statement, Manifold said he would not allow a "false narrative" to go unchallenged and disputed reports that his behaviour towards colleagues had been aggressive or belittling, but said his priorities as chairman "were not always shared by everyone".
Reuters reported that BP’s board had received enough information following a whistleblower complaint to identify what one source described as a pattern of unacceptable behaviour.
The FT said some senior colleagues believed Manifold had attempted to exert executive-style control over the company.
In his statement, Manifold said: "Where I saw unnecessary or excessive expenditure, I called it out," adding that he had "no interest in taking private aviation nor in availing myself of corporate tickets for sports events. I made my own coffee, bought my lunch in the local cafe."
10.46am: SSE slips but analysts reassured
Shares in SSE are down 1.4% this morning, after the renewables energy and power transmission group reported results.
Analysts said the backwards- and forwards-looking numbers were overall in line with expectations.
RBC Capital Markets, which rates the stock 'outperform' with a 3,025p target price, described the results positively, noting that SSE delivered at the upper end of its range even after absorbing a 2p per share accounting adjustment announced earlier in the month.
Jefferies, also on a 'buy' rating and 3,060p target price, said it was "overall, a reassuring update".
10.13am: FTSE underperforms, defence sector leads European gains
The FTSE has settled into its morning slump, down around 90 points, with little change in the losses since opening minutes.
London's blue-chips are underperforming mainland counterparts, with Germany’s DAX slipping just 0.1%, while the pan-European Stoxx 600 fell 0.7%.
All but one of the Footsie's 10 largest names are in red, with Rolls-Royce the exception, with only six of the 30 biggest names in green: BAE Systems, Compass, LSEG, RELX and Vodafone. Fallers include big pharma, banks and utiltiies and tobacco.
Declines on the Euro Stoxx are led by miners, retailers and technology stocks, with Fresnillo down 3.5%, Delivery Hero off 3.4% and Ocado losing 3.3%. JD Sports, BT and Auto Trader were also among the heaviest fallers on the Stoxx 600.
Echoing the picture in London, defence stocks are dominating the risers, with Germany’s Renk up 6.5%, Saab gaining 5.1%, followed by Rheinmetall, Hensoldt, Kongsberg, Leonardo and Thales.
9.43am: Over 1mln UK young people out of work or education
The UK is estimated to have just over one million people aged 16-24 not in education, employment or training (Neet) in the first quarter of the year, the ONS has revealed, or 1,012,000 to be exact.
This is an increase of 89,000 compared to a year earlier, and an increase of 55,000 on the final quarter of 2025.
Roughly 13.5% of all young people in the UK were Neets, up from 12.5% in Q1 last year and 12.8% in Q4.
It is the highest level in more than 12 years, says ONS head of labour market output Elise Rohan. "This was driven by greater numbers of young people no longer looking for work."
It comes on the same day that the government's Milburn review warned that the UK risks a 25% rise in Neets to 1.25 million by the early 2030s without urgent government action.
Former Blair-era minister Alan Milburn, who was asked by the government to lead the review, said the UK rate is three times as high as in Holland, and twice as high as Ireland.
In quotes released to newspapers, Milburn says: "This is not a failure of young people. It is a failure of a system stuck in the past. Whether it is education or health or welfare, that system fails to enable their participation in the labour market.
"Instead, all too often it ends up putting young people on a path to a life not in jobs but on benefits. This should be the priority for the government. It should be the priority for all of us."
9.19am: PPHE jumps on proposed offer
PPHE Hotels is by far the top riser on the FTSE 350, up 25%, after a proposed £930 million takeover approach was made by Tel Aviv-based Fattal Hotel.
Shares in PPHE have risen to 2,015p, while the indicative proposal was priced at 2,200p.
The proposed offer price is about 47% above the stock’s level before the company launched a strategic review last November, when two major shareholders, Eli Papouchado and Boris Ivesha, said they planned to meet a small number of financial investors to discuss a range of options.
PPHE's board had concluded that the proposal represented “fair value” and an independent committee has been formed to oversee discussions.
8.52am: Computacenter enters US federal govt market
Computacenter is up 2% to a new all time high this morning, up 67% over the past year, with the latest news being a bolt-on deal that gives it a first foothold in the US federal sector.
The FTSE 250 group has snapped up Government Acquisitions Inc, a US value-added reseller focused on the federal government market, for an initial cash payment of $63 million. The deal has been cleared by the US Committee on Foreign Investment and is expected to close next week.
Analyst Oliver Tipping at Peel Hunt says: "The key rationale is that the acquisition enters Computacenter into a new market: it previously lacked expertise and exposure to the US federal government.
"GAI's relationship with Nvidia further strengthens Computacenter's current relationship with this key vendor."
8.28am: BT down on Bharti blocker report
BT shares are down 2.6% after it was reported that the government plans to block Indian billionaire Sunil Bharti Mittal if he attempts to increase his stake in the former telecoms monopoly.
The FT reported the story earlier, citing people familiar with the matter.
Bharti, via his Bharti Global conglomerate, bought French billionaire Patrick Drahi’s stake held by his Altice telecoms group in late 2024.
At that stage the stake was 24.5%.
8.19am: Mid-cap ex-divs
There are several ex-divs on the FTSE 250 as well today, led by Keller Group, to adjust for its 52.1p payout.
Next largest payout is Hill & Smith at 35p, then Hilton Food at 24.9p.
Vesuvius, Gamma Communications and Victrex also trade ex-dividend, alongside Breedon, Temple Bar and SSP Group.
8.15am: FTSE flops at the open, gold miners lead
The FTSE 100 has dropped 84 points to 10,421 in opening trades.
Stocks going ex-dividend such as National Grid, Severn Trent, Kingfisher and AB Foods are a weight, as are precious metals miners and consumer-facing shares.
Fresnillo is the biggest faller, down 3.45%, as gold and silver prices retreat. Endeavour is down 3.5%.
Utilitiy BT, drugmaker AstraZeneca, online platform Autotrader and housebuiilder Barratt Redrow are among others down between 2.8% and 1.8%.
8am: IQE completes fundraising, but losses widen
IQE has reported full-year results, showing wider losses but improved trading in the second half, as well as confirming the completion of its £81 million fundraising, which sees US semiconductor company Macom take a strategic stake.
The AIM-listed company, which supplies compound semiconductor wafer products used in data centres, defence and consumer electronics, saw revenue fall 18%, EBITDA down 60% and pre-tax losses widened to £37 million.
Conditions were said to have improved during the second half and momentum had continued into the current year, with top-line growth of more than 20% expected this year, supported by demand for the photonics division's indium phosphide products used in optical interconnects for AI infrastructure.
7.44am: JMAT and SSE
Johnson Matthey has announced its results and a deal to acquire US catalyst manufacturer Cormetech for $360 million (£269m), potentially rising to $460 million ($343m).
The deal is expected to be accretive to earnings per share from the first full year of ownership even before "synergies" are extracted, with return on invested capital expected to exceed the group's cost of capital within three years.
Elsewhere, SSE has reported lower profits for the past year but upped its dividend 7% as it increased investment spending to a record level and said delivering its £33 billion energy infrastructure plan was "well under way".
Adjusted earnings per share dropped 5% to 153.5p. For the new year, the company reiterated its adjusted earnings targets of 168-193p.
7.25am: Today's ex-divs
A busy batch of FTSE 100 stocks go ex-dividend today, with National Grid accounting for the largest index adjustment at 6.75 points after its 32.14p payout.
Others trading without entitlement to their latest dividends are, in order of the size of the index adjustment: Severn Trent (0.96), Informa (0.80), Intertek Group (0.69), Kingfisher (0.61), DCC (0.50), Associated British Foods (0.27), Alliance Witan (0.12) and Diploma (0.11).
In total, the ex-div moves are expected to shave around 10.8 points from the blue-chip index at the open.
Market pre-open
The FTSE 100 is expected to open 60 points lower on Thursday as oil prices kick back up on reports of more strikes by the US on locations in Iran, even though the fragile ceasefire was not said to have collapsed.
London's blue-chip index, which yesterday gained just under 14 points to close at 10,505.01, is likely to be part of a wider retreat among European stocks.
US stock futures are in the red too, led by a 0.5% predicted deficit for the tech-heavy Nasdaq, after a modestly positive session overnight, where the Dow Jones gained 0.4%, the S&P 500 edged just above the flatline and the Nasdaq added 0.1%.
Brent crude oil is up 2.6% to $96.80 today. This follows Iran’s semiofficial Tasnim news agency reporting that the country's navy fired warning shots as four ships, one of them an American tanker, attempted to pass the Strait of Hormuz.
State media later reported that US forces carried out strikes on three locations but caused no casualties or damage.
US officials told media that strikes were on a ground control station where drones were being launched and the actions were "purely defensive and intended to maintain the ceasefire".