The UK’s FTSE 100 index closed higher on Wednesday, supported by gains in energy and consumer staples stocks, although the benchmark remained close to three-week lows as investors continued to monitor the fragile ceasefire situation in the Middle East. The FTSE 100 rose 0.3% to close at 10,254.8 points, while the FTSE 250 gained 0.5%.
Consumer goods giants Tesco and Unilever were among the top performers, with both stocks rising more than 2% during the session as investors sought defensive sectors amid ongoing geopolitical uncertainty.
Market sentiment remained focused on developments in the Middle East after the United States and Iran exchanged fresh threats. President Donald Trump said Iran had taken too long to negotiate a deal and would “have to pay the price”, triggering a rise in crude oil prices and helping UK energy stocks climb 1.9%.
WH Smith slumped 16.2% after lowering its annual profit forecast for the second time in two months and announcing an equity fundraising plan aimed at strengthening its balance sheet.
Banking stocks were among the weakest performers, with the sector falling 1%. HSBC and Standard Chartered both declined more than 1% as concerns persisted following Beijing’s introduction of tighter capital controls on cross-border investments.
Rising inflation concerns have led financial markets to increase expectations of a 25-basis-point interest rate hike from the Bank of England by September, according to data compiled by LSEG.
Elsewhere, Pennon Group fell 1.7% after its newly appointed chief executive warned that operational performance needed improvement across the business.
EnQuest surged 27% after the North Sea-focused oil and gas producer agreed to acquire interests in four offshore contracts in Malaysia, boosting investor confidence in the company’s growth prospects.
