London open: FTSE falls as investors eye manufacturing PMI

(Sharecast News) - London stocks fell in early trade on Wednesday as investors mulled uninspiring house price data and eyed the latest reading on the UK manufacturing sector, amid doubts over peace talks between the US and Iran in Doha.

At 0847 BST, the FTSE 100 was down 0.4% at 10,457.47, while Brent crude was 0.1% higher at $73.02 a barrel and West Texas Intermediate was flat at $69.51.

US envoys Jared Kushner and Steve Witkoff arrived in Doha on Tuesday for what the White House described as "high level" talks. However, Iran and host Qatar said they would meet with mediators, rather than Iranians officials.

On home shores, industry data showed that house prices were flat in June on the back of cautious consumer sentiment.

According to the latest Nationwide house price index, prices rose 2.2% on an annual basis but were broadly unchanged month-on-month, following a 0.6% decline a month earlier. Economists had expected a slightly higher annual increase, of 2.4%.

The average house price now stands at �277,484.

However, Nationwide chief economist Robert Gardner said it was not surprising that the market had softened given the uncertainty caused by developments in the Middle East and the subsequent rise in energy prices.

"Indeed, consumer confidence and measures of housing sentiment have weakened, and mortgage approvals fell noticeably in May," he said.

Gardner said: "In recent weeks a shift in market expectations for the future path of Bank Rate has helped to bring down the market interest rates which underpin fixed-rate mortgage pricing.

"If maintained, these trends will help to restore household confidence and ease affordability constraints, paving the way for a recovery in housing market activity in the coming quarters - provided that domestic political uncertainty does not adversely impact sentiment."

Still to come, the S&P Global UK manufacturing PMI for June is out at 0930 BST.

In equity markets, Associated British Foods slumped as it said that Primark's third-quarter like-for-like sales fell 2.2% as the Iran war and unseasonal UK spring weather hit consumer sentiment.

The diversified group held annual guidance despite an expected �25m-60m loss at its sugar business.

Greggs fell as it said chief financial officer Richard Hutton plans to retire at the end of the year after 28 years with the company. The bakery chain has appointed Ben Waldron as CFO and executive director.

JD Sports was also in the red as Nike fell after its latest earnings.

On the upside, Babcock racked up strong gains again after the British government announced a �15bn hike in defence spending on Tuesday.

CMC Markets surged to the top of the FTSE 250 after it lifted its full-year guidance for net operating income as it hailed continued strong momentum, driven by "exponential and exceptional" growth in its B2B business.

The company now expects FY27 net operating income of at least �550m, up from previous guidance of �460m to �480m, with EBITDA guidance of �250m.

RS Group was boosted by an upgrade to 'buy' from 'hold' at Deutsche Bank, which said the recovery case was strengthening.

Market Movers

FTSE 100 (UKX) 10,457.47 -0.38%

FTSE 250 (MCX) 22,996.48 -0.07%

techMARK (TASX) 5,880.83 0.19%

FTSE 100 - Risers

Babcock International Group (BAB) 967.80p 2.06%

IG Group Holdings (IGG) 1,846.00p 1.92%

Flutter Entertainment (DI) (FLTR) 7,710.00p 1.90%

Abrdn (ABDN) 241.40p 1.43%

BT Group (BT.A) 190.25p 0.93%

Pearson (PSON) 1,205.50p 0.88%

The Sage Group (SGE) 822.00p 0.86%

ICG (ICG) 1,698.00p 0.71%

3i Group (III) 2,495.00p 0.68%

Vodafone Group (VOD) 100.00p 0.63%

FTSE 100 - Fallers

Associated British Foods (ABF) 1,929.50p -2.57%

Anglo American (AAL) 3,631.00p -1.93%

Fresnillo (FRES) 2,683.00p -1.82%

JD Sports Fashion (JD.) 82.38p -1.63%

Barratt Redrow (BTRW) 276.50p -1.53%

Pershing Square Holdings Ltd NPV (PSH) 3,686.00p -1.18%

National Grid (NG.) 1,233.50p -1.16%

Imperial Brands (IMB) 2,767.00p -1.15%

Rio Tinto (RIO) 7,019.00p -1.07%

BP (BP.) 462.25p -1.02%

FTSE 250 - Risers

CMC Markets (CMCX) 560.00p 22.49%

Harworth Group (HWG) 127.00p 5.83%

Ceres Power Holdings (CWR) 521.00p 3.97%

RS Group (RS1) 599.00p 3.42%

Plus500 Ltd (DI) (PLUS) 4,906.00p 2.47%

SSP Group (SSPG) 187.10p 2.40%

Raspberry PI Holdings (RPI) 848.00p 2.13%

QinetiQ Group (QQ.) 426.80p 1.95%

Man Group (EMG) 297.20p 1.92%

GB Group (GBG) 199.80p 1.82%

FTSE 250 - Fallers

BlackRock Smaller Companies Trust (BRSC) 1,320.00p -80.00%

Rank Group (RNK) 92.80p -5.02%

Gamma Communications (GAMA) 810.00p -3.63%

Premier Foods (PFD) 197.40p -3.33%

Greggs (GRG) 1,549.00p -3.13%

Telecom Plus (TEP) 722.00p -2.95%

Pacific Horizon Inv Trust (PHI) 1,144.00p -2.22%

Renishaw (RSW) 5,030.00p -2.14%

Currys (CURY) 156.20p -2.13%

Hochschild Mining (HOC) 453.80p -1.82%