London pre-open: Stocks to edge down as Iran threatens retaliation

(Sharecast News) - London stocks were set to fall at the open on Wednesday as investors continue to mull developments in the Middle East conflict, after Iran threatened to retaliate following US strikes.

The FTSE 100 was called to open down around 0.2%. At 0728 BST, Brent crude was 1.7% lower at $97.91 a barrel.

Danske Bank said: "In the US-Iran war, Iran condemned the US attacks on Iranian vessels and missile launch sites on Monday evening, arguing that they were a violation of the ceasefire. Iran's Revolutionary Guard reserved the right to retaliate.

"Despite the escalating tensions, back-channel talks between the two sides appear to continue, with both parties believed to be seeking a diplomatic resolution. Signs of normalisation are also emerging domestically, as Iran began restoring public internet access after one of the world's longest nationwide blackout periods."

In corporate news, retailer Pets at Home posted a mixed set of fullyear results, with solid progress in its veterinary unit offset by continued pressure in retail.

Pets at Home said group consumer revenues had edged 1% higher to �1.98bn, driven by a 5% rise in Vet Group revenue to �688m, while retail slipped 1% to �1.29bn against a subdued market backdrop.

Underlying group pre-tax profits fell 30.2% to �92.8m, reflecting lower retail profitability and a 270basispoint margin decline, while statutory pre-tax profits declined 28.3% to �86.5m.

Food producer Greencore hailed a strong first-half performance and said the integration of Bakkavor was progressing well.

In the half year to 27 March, adjusted operating profit rose 62.2% from the same period a year earlier to �73.3m, with reported revenue up 43% to �1.3bn.

Greencore also said it is exploring a sale of its US business.