- FTSE 100 up 22 points to 10,250
- Oil prices rise from recent lows on Trump comments
- US CPI inflation rises in line with expectations, no Fed moves expected
- WH Smith warns on profits, launches cash call
4.55pm: Miner weakness
The FTSE 100 ended Wednesday up 0.3% at 10,255 after a volatile, back-and-forth session that saw the index swing from early gains to a mid-morning drop before recovering into the close.
Sentiment remained cautious amid renewed U.S.-Iran tensions, but there was no outright risk-off move. Instead, traders rotated out of miners and financials into defensives, property and consumer stocks, helping the index claw back losses and finish slightly higher in a choppy, directionless tape.
4.14pm: Mixed bunch of blue-chips as index edges higher
Property developers Tritax Big Box, Land Sec and British Land are top of the Footsie risers as the midweek session tails off.
Bookmaker Entain, insurer Admiral and grocer Tesco make up the rest of the top of the leaderboard.
Among the index's heavyweights, Shell and BP are providing a major source of uplift, as are BAT, Unilever GSK and Compass, all up between 1% and 2%.
At the other end, HSBC continues to hang as a considerable weight, down 1.6% but still keeping its crown as the largest company above AstraZeneca, which is down, as are Glencore and others miners, and Barclays, Lloyds and other lenders.
It's been a "choppy Wednesday session", says analyst Patrick Muinnelly at Tickmill.
"The tone was cautious rather than panicked. Renewed US-Iran attacks and counterattacks kept Middle East risk firmly on the desk, but the market did not move in one straight line.
"Instead, investors faded early strength, cut exposure to China- and commodity-linked names, then selectively bought back defensives, property and consumer stocks as the morning progressed."
Things remain mostly in the red across the pond, led by the Nasdsaq's tech names, dragged lower by weakness across semiconductors, with heavyweight chipmakers leading the declines: Broadcom, AMD, Arm Holdings, Nvidia, Micron, Qualcomm, Marvell Technology, NXP Semiconductor, Microchip Technology and Monolithic Power Systems are among the index's biggest fallers.
The sell-off extended beyond semiconductors into AI-linked and high-growth technology stocks, with Tesla, AppLovin and software group Intuit also all down over 2%, along with data storage and power generation.
3.46pm: CPI to keep Fed on sidelines
More thoughts on US inflation, where the consensus view seems to be that the numbers will keep the Fed from hiking or cutting rates for the foreseeable.
US CPI in May continued to be boosted by energy prices, says Barclays economist Pooja Sriram, though she notes that moves within core CPI showed some moderation on the prior month.
Today's print being roughly in line with what economists, the markets and likely the Fed expected, "provides little reason to alter views on inflation," she says, and expected inflation will "likely keep the FOMC on the sidelines".
"We expect the Fed to remain attuned to developments in energy prices and potential supply chain issues in coming months stemming from the closure of the Strait and we maintain our call for the Fed to keep rates unchanged for the rest of the year, followed by a 25bp cut in March 2027."
James Knighly at ING says: "Remember too, that the biggest cost input for corporate America is the cost of the workforce and with wage growth continuing to slow, that should also help take some of the steam out of core inflation, even if headline inflation remains vulnerable to volatility in energy prices.
"This should all help to keep inflation expectations in check, so while we no longer expect the Fed to cut interest rates this year given improved economic momentum, we don’t expect a rate hike either."
Joe Mazzola, market analyst at Charles Schwab, notes that "Treasury yields retreated and stocks pared earlier losses in the immediate aftermath of the report, but the market remained red as Middle East tension mounted".
3.10pm: Octopus puts long-running argument to bed?
Octopus Energy appears to have cleared a major regulatory hurdle, with the Financial Times reporting that the supplier has submitted evidence to Ofgem showing it meets tougher financial resilience requirements introduced after the energy crisis.
The rules require suppliers to hold stronger capital buffers to withstand market shocks. Octopus, which serves around 8 million households, had previously missed the deadline, prompting criticism from rivals including Centrica.
If approved by Ofgem, the submission would draw a line under a long-running dispute over the group's financial strength.
2.56pm: US stocks open down, FTSE swings to gain
US stocks have opened only slightly lower, while the FTSE 100 has battled into the green.
Across the pond, the Dow Jones has started with a drop of 185 points or almost 0.4%, while the S&P 500 is down just over 0.1% and the Nasdaq is 0.2% lower.
Biggest fallers on the Dow are 3M, Honeywell and Caterpillar, with risers led by Coca-Cola, Chevron and Verizon.
Bottom of the S&P are Super Micro Computer, down almost 14%, with Broadcom down 6%.
2.10pm: FTSE almost flat again, US futures in red
Markets have regained their equilibrium after a bout of volatility from Trump and US inflation data.
The FTSE's almost back to flat now and US futures have trimmed their losses.
Dow Jones futures are down 0.4%, the S&P 500 -0.5% and Nasdaq -0.9%.
Thoughts on the CPI from Chris Zaccarelli, chief investment officer for Northlight Asset Management in the US.
"Most of this morning’s data came in line with expectations, but we are seeing a strong rise in core inflation."
With CPI at 4.2%, the Fed "will be in no position to cut rates if this continues" and, something the market has started to react to this possibility, "the Fed’s next move may need to be a hike".
Zaccarelli says the market "has been climbing a wall of worry and has been able to rally on stronger earnings and stable interest rates, but a rising rate environment is another thing altogether."
He counters that if things wrap up in the Middle East and shipping gets back to normal over the course of the rest of the year, "we can see inflation come down over time and the Fed could hold off raising rates, but if things stay as they are currently, then all bets are off."
1.40pm: US CPI inflation
US consumer price index figures are out, offering a mixed picture for markets.
US CPI rose 0.5% month-on-month in May, down from 0.6% in April and in line with forecasts.
The headline annual rate of CPI rose to 4.2% from 3.8%, which was also in line with economists' predictions at the hottest since April 2023.
Core CPI, which strips out food and energy prices, increased 0.2% on the month, broadly in line with forecasts.
Annual core CPI edged up to 2.9% from 2.8%, marking the highest since September 2025 and the first time since December 2022 that the 12-month reading was higher than the equivalent year-earlier figure.
Analysts said the data supported a cautious rather than hawkish approach from the Federal Reserve, with no immediate pressure for policymakers to tighten further.
1.16pm: FTSE oil giants climb
The FTSE's losses have shrunk a little, as Shell and BP shares have been elevated by a rise in oil prices in the past hour.
Brent crude has been pumped up to almost $93 a barrel, with US WTI up 1.9% to just below $90.
It's worth noting that President Trump's threats about strikes on Iran and Tehran having "taken too long to negotiate a deal" and paying the price, comes at the same time as negotiations continue.
A Qatari delegation reportedly arrived in Tehran after consulting with Washington, seeking to bridge the remaining gaps in negotiations.
Trump will no doubt claim it was "the art of the deal" if anything is agreed, mirroring his crazy threat that a "whole civilization will die" in April before a ceasefire was agreed.
12.31pm: Trump threatens Iran with new strikes
Oil prices have picked up after President Trump threatened Iran with new strikes.
Trump told Fox News that he is close to ordering new strikes against Iranian power plants and bridges.
Brent crude rose 0.9% to $92.30 a barrel.
12.06pm: Stocks drop as Trump says Iran 'will pay the price'
A little after midday, just as losses for the Footsie and US futures started to come off their morning lows, stocks have dropped sharply.
It follows an angry post from President Donald Trump on his social media site.
In its raw, unedited form, it says: "Iran’s Military is a complete and total mess. Much of it, like their Navy and Air Force, doesn’t even exist anymore - They have been completely defeated. Iran is all talk and no action. The Bully of the Middle East is DEAD!!! They’ve taken too long to negotiate a deal that would have been great for them, now they will have to pay the price!!!"
Oil prices have not yet reacted much. (See update from Kathleen Brooks below.)
London's mid-caps had just clambered back onto dry land too, helped by a second day of gains for Molten Ventures, and a rebound for Oxford Instruments.
11.33pm: An IPO for London
A new company has floated on AIM - with Coastal Africa Group getting a warm welcome as it arrives with £27 million of fresh capital and backing from BP in its search for oil and gas assets across West Africa.
The newly listed investing company raised £17.4 million from investors at 161p a share, giving it a market value of £218.7 million on admission, with BP Oil International also agreeing to subscribe for £10 million of convertible loan notes as part of an offtake exclusivity agreement.
The investment case rests heavily on the track record of the management team, where Norwegian financier Conrad Clauson is chief executive and non-executive chairman is Peter Kimpel, a German-born former Goldman Sachs managing director and also ex CFO of Rocket Internet.
Kimpel says the first day of dealings on AIM "marks an important milestone" and that the new funds mean the company "is now well-equipped to capitalise on the opportunities in the region, which continues to present a highly attractive environment for experienced operators capable of partnering constructively with governments, local stakeholders, and industry participants to unlock value from strategically important energy assets".
11.12am: Lots going on in the market backdrop
"There is a lack of anxiety in the oil market right now," says Kathleen Brooks at XTB, even if an Iran peace deal is not arriving.
Oil markets are "trading on hope that a resolution can be found, and on a loosening of oil supply", with a significant amount of Middle Eastern oil leaving the Persian Gulf by tanker through the Strait and through other routes.
"It is difficult to tell exactly how many ships are passing through the Strait, but anecdotally it is more than officially reported, as ships turn off their radars when traversing the Strait."
There has been decline in onshore Middle Eastern oil inventories, which is "telling us that Middle Eastern oil supply is managing to loosen up, even if it is nowhere near pre-war levels", with UAE oil company ADNOC selling 14mn barrels of oil this week and is planning a second tender in the coming days.
Elsewhere, another sell-off in tech stocks overnight, led by chipmaker Marvell and Apple failing to impress investors with its latest version of Siri AI.
"With the market wobbling on the AI trade this week due to valuation concerns, there will be even more focus on earnings season, which will start around August."
For now, US futures are pointing to further declines, with Nasdaq futures currently off 1.2% and S&P 500 and Dow Jones both seen falling 0.7-0.8%.
"The issue for the AI trade right now is not only stretched valuations, it is also rising bond yields," says Brooks, with higher interest rates making capex spending more expensive.
Also the much-hyped SpaceX IPO at a valuation of more than $1.7 trillion, could also be squeezing other shares as investors move money around to buy into the $80 billion share sale, with reports from Rueters that it is four times oversubscribed.
The key economic event today is US CPI, which will be released at 1330 UK time, with the market expecting inflation to have risen to 4.2% in May from 3.8%.
"The market is going to be extremely sensitive this reading. A CPI miss could see a rebound in the tech trade and a decline in Treasury yields. A stronger than expected reading could see a continuation of the sell-off in stocks and bonds," says Brooks, noting that US Treasury yields have been rising into this report.
10.16am: Market volatility growing
The FTSE 100 has dropped to around three-week lows, with mainland European peers and US futures also diving lower.
Falls are only small – down 0.4% for the London and Frankfurt benchmarks – but it's a fairly sudden move
Oil prices are lower, with Brent down another 0.5% to just over $91, so this is something else.
Market analyst Neil Wilson at Saxo flags all sorts of warning signals: the 'Buffett indicator', ie the market value of stocks relative to GDP, is at an "extreme" 238%, with BofA Merill Lynch warning of "too many red flags" and Moody’s saying the US teetering on brink of recession.
This comes "just as we see volatility catalysts from a deluge of equity issuance and a Fed tightening surprise", and so Wilson says the outlook is "risky and dangerous for equities".
Citi has noted aggressive short building in Nasdaq stocks alongside extended bullish positioning, which "leaves the market vulnerable to downside risks".
Wilson points out that following Friday’s tech-led selloff, major investment bank market desks, such as Goldman Sachs and Barclays, "suggested it could signal deeper fragility, not a one-off move, citing crowded momentum positioning, weak market breadth, and risks for rates staying higher for longer...in short, AI, rates and inflation create added volatility risks".
9.50am: Enquest soars
EnQuest shares have leapt 20% after it agreed a proposed US$833 million acquisition of offshore Malaysian oil and gas interests that would more than double group production and tilt the business further towards South East Asia.
The deal, which is big enough to qualify as a reverse takeover, will cover participating interests in four production sharing contracts through three farm-out agreements with Petronas.
ANalyst James Hosie at Shore Cap says: "We expect the transaction to be immediately free cash flow accretive on completion (scheduled for end-FY26F), with EnQuest becoming a >100kboe/d producer.
"Although, this tips the balance of the business away from the UK North Sea and towards SE Asia, we are confident EnQuest retains the financial capacity and appetite to continue pursuing transformational acquisitions in the UK."
9.25am: FTSE flattens off
The FTSE 100 is now flat at 10,228, with more shares in the index shifting from green to red.
Markets seem a bit jumpy ahead of the US inflation data later, which could send the mood either way.
Wall Street clawing back a large part of earlier tech losses by the end of the session "has helped to avoid contagion on the markets, albeit investors are slightly nervous about the heightened volatility this week," says market analyst Dan Coatsworth at AJ Bell.
"There are many reasons why markets are wobbly. The prospect of interest rates staying higher for longer, inflation fears, frustration that the Iran war is still going on and potential liquidation events if investors are trimming holdings to raise cash to back some mega IPOs on the horizon."
8.51am: Pubs and chess moves
Down the markets is where the big moves are this morning.
Fuller Smith & Turner shares rose 9.5% after the London pubs and hotels group reported a sharp increase in profits, raised its dividend and unveiled a further share buyback.
The pub operator posted adjusted pre-tax profit of £34.6 million for the year to 28 March, up 28% from £27 million a year earlier and beating the consensus forecast of £32.5 million.
Executive chairman Simon Emeny says trading has continued positively into the new financial year, with LFLs up 4.4% in the first 10 weeks and investment in pub gardens has seen "fresh space created for peak trading", with advance bookings for the World Cup "strong", and increased demand for staycations in its rooms.
A new gambit from World Chess has sent the shares up 11% this morning, with the company signing a term sheet with the International Chess Federation to expand its role as operator of FIDE’s official online platform.
The proposed framework would open a route for the first time for qualifying online players to convert their digital rating into an official FIDE over-the-board rating.
Chief executive Ilya Merenzon says the initiative marks "the first time in the history of the game that an official FIDE rating can be accessible to millions of players".
8.31am: WH Smith tumbles
WH Smith has tumbled 15.2% in early trading, down 34% since the start of the year.
Analyst Jonathan Pritchard at Peel Hunt has removed his 'add' rating, with his rating designated as "under review".
He notes that the last seven weeks saw UK trading pick up, "but US trading has slowed significantly" with LFL sales in the travel area have shifted over the last seven weeks from +6% to -1% and "a lot of promo going on", squeezing profit margins.
"We now expect EBIT to be closer to £20 million versus our prior £30 million forecast" and headline PBT "moves from £91m to the low end of management’s revised £75-90 million guidance range".
The cash call he frames as management "taking action on debt".
8.15am: FTSE opens higher, but HSBC a weight
The FTSE 100 has opened slightly higher, as advances for grocery groups and defensive shares is offset by falls for Asia-focused banks, miners and utilities.
In opening trades, the blue-chip index has climbed around 16 points to 10,243.5.
AB Foods, Smith & Nephew, Tesco, Admiral, M&S, BAE Systems are among the top 10 risers, up 1.8-1.5%.
At the other end, it's HSBC down another 1.5% or over 7% over the past week, followed by Sage, Endeavour Mining, Polar Cap Tech Trust, United Utilities and Standard Chartered.
HSBC and Stan Chart are down for the second day, and following drops last week on worries around tighter offshore banking access in Hong Kong.
There are around a quarter of the 100 stocks in the red.
7.39am: WH Smith profit warning and cash call
WH Smith has issued a profit warning and launched a hurried cash call to bolster its balance sheet after weaker travel demand and pressure on margins hit trading before the key summer period.
The travel retailer said revenue rose 5% in the 14 weeks to June 6, with like-for-like sales up 2%, before growth slowed in recent weeks.
Middle East flight disruption and ensuing weaker consumer confidence were the cause, resulting in lower passenger spending that weighed on its airport stores.
The FTSE 250 group now expects headline pre-tax profit before non-underlying items of £75 million to £90 million for the 2026 financial year, down from guidance of £90-105 million issued in April, when new chair Leo Quinn pressed pause on the dividend.
FTSE 100 market pre-open
London's blue-chip index has been called higher on Wednesday, as investors rotate out of the tech sector.
FTSE 100 futures are up 20 points ahead of the open, having broken a three-day winning streak with a drop of almost 146 points to 10,227.33 yesterday.
Selling of US tech stocks led to the Nasdaq falling 1% overnight, led by a sell-off of chipmakers, which also saw the S&P 500 slip 0.3%, while the blue-chip Dow Jones bucked the trend with a 0.2% gain.
South Korea's semiconductor-tilted Kospi index dropped 6.2% earlier this morning, with Japan's Nikkei falling 1.9% and Chinese markets also in the red.
"Markets are straddling some fairly extreme scenarios at the moment," says Deutsche Bank market strategist Jim Reid.
"Not only are we oscillating between deal or no deal with the US and Iran, but markets are also swinging between 1999-style AI exuberance and 2000-type tech crash fears."
Brent crude oil briefly fell below $90 for the first time since April 17 yesterday, but despite partially rebounding remains relatively becalmed at just over $91 a barrel this morning despite the conflict between the US and Iran seeming to escalate again.
After the downing of a US Army Apache helicopter over the Strait of Hormuz, US Central Command last night said forces carried out a "proportional response to unjustified Iranian aggression," with fighter jets striking Iranian air-defence systems, ground control stations and surveillance radar sites near the strait.
