London midday: FTSE flattens out as investors eye fresh peace talks

(Sharecast News) - London stocks had flattened out by midday on Wednesday as investors mulled the potential resumption of US-Iran peace talks.

The FTSE 100 was steady at 10,606.20, giving up earlier small gains, while Brent crude was up 1.5% at $96.23 a barrel and West Texas Intermediate was 1.7% higher at $92.87.

Investors were mulling a report the US is sending thousands of additional troops into the Middle East in the coming days.

According to the Washington Post, citing US officials, the Trump administration is attempting to pressure Iran into a deal that could end the conflict while considering the possibility of additional strikes or ground operations if a fragile ceasefire does not hold.

On Tuesday, Donald Trump said that talks with Iran in Islamabad could resume over the next two days, according to the New York Post.

In an interview with an NYT reporter who had gone to Islamabad for the first round of talks, the US President said: "You should stay there, really, because something could be happening over the next two days, and we're more inclined to go there."

In an interview with Fox News, Trump said the war was "close to over", while CNBC reported a White House official as saying that a second round of negotiations between the US and Iran was being discussed. The official said nothing has been officially scheduled yet.

Susannah Streeter, chief investment strategist at Wealth Club, said: "The optimism that had been fired up on hopes that fresh talks could end the Iran conflict has begun to seep away. Stocks on Wall Street nudged fresh record levels as oil prices dipped back. But given the hurdles to cross, this could be interpreted as a dose of irrational exuberance. In Europe there's a lot more caution around as companies count the cost of the conflict.

"The FTSE 100 has struggled to hold onto early gains while the CAC 40 in Paris is deep in the red, dragged down by luxury goods giants."

In equity markets, Ladbrokes owner Entain shot up after an upgrade to 'buy' from 'add' at Peel Hunt.

Miners Antofagasta and Anglo American rose in tandem with copper prices. Antofagasta was also in focus as it reiterated guidance for growth in copper production over the year despite lower tonnage in the first quarter.

Barratt Redrow gained as it reiterated guidance but warned that war in the Middle East was making visibility beyond the current year more uncertain.

The company said the third quarter had been "solid", with reservations underpinned by robust customer demand. The net private reservation rate was 0.67, 6.3% higher year-on-year, while total forward sales stood at �3.54bn as at 29 March. It delivered a total of 3,274 total home completions in the period.

As a result, Barratt said it remained on track to deliver total home completions of between 17,200 and 17,800 in the current year, and adjusted pre-tax profits in line with consensus. However, it also flagged that visibility beyond the current year was now "more uncertain".

Russ Mould, investment director at AJ Bell, said: "The conflict in Iran and the implications it has for inflation and interest rates have shaken the foundations of the housebuilding sector, so there will be a modicum of relief after Barratt Redrow's third-quarter update.

"The company is sticking with guidance, albeit for a financial year which ends in a matter of weeks. Demand is holding up for now, with sales rates ticking higher and the order book in reasonable shape, but the company's decision to materially scale back land purchases feels instructive as it reacts to limited forward visibility.

"There is a sober acknowledgement that inflationary pressures are likely to be felt more acutely through the course of 2026.

"While it may owe much to the timing of remediation payments, investors will be pleased to see a higher-than-expected cash buffer expected at Barratt by the year end."

Standard Life rose after agreeing to buy the UK arm of Dutch insurer Aegon for �2bn.

Gambling operator Rank Group surged as it said it expected full-year operating profit of at least �68m after a 5% jump in third-quarter net gaming revenue. The owner of Mecca bingo and Grosvenor casinos said NGR for the three months to March came in at �205.4m, with year-to-date NGR up 6% on the prior year.

On the downside, luxury fashion brand Burberry slumped following disappointing first-quarter updates from Gucci owner Kering and Hermes, both of which fell sharply.

Imperial Brands was in the red again following a downgrade to 'neutral' at UBS.

Market Movers

FTSE 100 (UKX) 10,606.20 -0.03%

FTSE 250 (MCX) 22,680.66 -0.19%

techMARK (TASX) 5,933.21 0.05%

FTSE 100 - Risers

Entain (ENT) 571.80p 2.58%

Convatec Group (CTEC) 243.00p 2.10%

Antofagasta (ANTO) 3,951.00p 2.00%

3i Group (III) 2,805.50p 1.61%

Barratt Redrow (BTRW) 262.10p 1.47%

Standard Life (SDLF) 724.20p 1.43%

Intertek Group (ITRK) 4,352.00p 1.07%

London Stock Exchange Group (LSEG) 9,240.00p 1.03%

Anglo American (AAL) 3,610.50p 1.01%

AstraZeneca (AZN) 15,052.00p 0.91%

FTSE 100 - Fallers

Burberry Group (BRBY) 1,140.20p -2.19%

Imperial Brands (IMB) 2,871.00p -2.05%

Airtel Africa (AAF) 365.40p -1.83%

Rolls-Royce Holdings (RR.) 1,291.40p -1.51%

InterContinental Hotels Group (IHG) 141.45p -1.50%

Associated British Foods (ABF) 1,847.00p -1.49%

Babcock International Group (BAB) 1,246.50p -1.23%

BT Group (BT.A) 217.65p -1.11%

Whitbread (WTB) 2,490.00p -1.07%

CRH (CDI) (CRH) 8,616.00p -1.01%

FTSE 250 - Risers

Ceres Power Holdings (CWR) 389.60p 11.74%

Rank Group (RNK) 101.00p 11.73%

Raspberry PI Holdings (RPI) 593.50p 6.65%

Playtech (PTEC) 410.00p 3.59%

Pollen Street Group Limited (POLN) 884.00p 2.55%

Close Brothers Group (CBG) 445.40p 2.21%

Ocado Group (OCDO) 186.50p 2.08%

Gamma Communications (GAMA) 879.40p 2.07%

NB Private Equity Partners Ltd. (NBPE) 1,496.00p 1.91%

Great Portland Estates (GPE) 322.60p 1.70%

FTSE 250 - Fallers

Impax Environmental Markets (IEM) 437.00p -2.89%

Currys (CURY) 134.00p -2.19%

Pagegroup (PAGE) 133.90p -2.12%

WPP (WPP) 253.55p -2.10%

Wizz Air Holdings (WIZZ) 997.00p -2.06%

C&C Group (CDI) (CCR) 122.40p -1.92%

Volution Group (FAN) 635.00p -1.55%

AO World (AO.) 89.10p -1.55%

Syncona Limited NPV (SYNC) 90.00p -1.53%

easyJet (EZJ) 390.60p -1.51%