The UK’s FTSE 100 index experienced a slight decline on Wednesday following a series of record highs, as investors evaluated the latest developments between the U.S. and Venezuela, leading them to gravitate towards defensive utilities and real estate stocks. The blue-chip FTSE 100 fell 0.5% by 1010. The domestically focused mid-cap index was about flat, while the pan-European STOXX 600 index was up just 0.1%.

Energy stocks fell 2.5% alongside a slump in oil prices after U.S. President Donald Trump reached a deal to import up to $2 billion worth of Venezuelan crude. Energy stocks BP and Shell fell 2.9% and 2.2% respectively. The FTSE 350 index of precious metal miners opens new tab experienced losses, declining by 2.4%, following a more than 1% drop in gold prices. UK equities commenced the year with robust performance. The blue-chip index surpassed the 10,000-point mark for the first time last week, as investors anticipated forthcoming rate cuts by the Bank of England later this year. Tuesday’s record high marked the fourth occurrence in five sessions.

The FTSE small-cap index was down 0.1% after approaching within 0.5% of its all-time high from 2021 earlier in the session.Joachim Klement, head of investment strategy at Panmure Liberum, noted on Tuesday that small caps exhibit a more attractive valuation compared to large caps in the UK.Our analysis suggests that robust earnings growth is likely to enhance total returns in the UK; however, the FTSE 250 may underperform relative to the FTSE 100 and FTSE Small Cap.

Among individual stocks, Topps Tiles rose 1.5% after the tile retailer reported a 3.7% rise in first-quarter revenue, aided by resilient demand from builders and contractors. Edinburgh Worldwide Investment Trust was up 1.8% after top shareholder Saba Capital renewed its call for investors to elect a new, independent board following a “suspiciously timed” sell-down of the trust’s SpaceX stake.