FTSE 100 Slips as Mining Losses Offset Defence Stock Gains

FTSE Futures

The UK’s blue-chip FTSE 100 experienced a decline on Wednesday following six consecutive quarterly gains, as investors kept a close watch on the recent developments in U.S.-Iran negotiations. While financials and industrials showed strength, this was counterbalanced by a downturn in energy and mining sectors.

The internationally focused FTSE 100 index fell 0.1% by 0923, while the midcap FTSE 250 rose 0.4%.

  • Iran announced on Tuesday that it would not engage with senior U.S. diplomats, amid escalating tensions between the two countries, thereby complicating the potential for a peace accord.
  • Precious and industrial mining shares have experienced a decline, exerting downward pressure on the commodity-heavy FTSE 100, with Rio Tinto and Fresnillo falling by 1.1% and 1.7%, respectively.
  • Aerospace and defence shares opened new tab extended gains from the prior session when Prime Minister Keir Starmer pledged an extra £15 billion ($20 billion) toward a defence boost. Babcock, BAE Systems, Rolls-Royce, and Melrose Industries rose between 1.7% and 4.9%.
  • PMI data indicated that Britain’s manufacturing activity experienced a decline in June, even with an uptick attributed to stockpiling in anticipation of price increases and concerns regarding supply chain disruptions.
  • Among individual movers, AB Foods opened new tab dropped 2% after the Primark owner stated it expects annual profit to be below last year’s. The food, beverage & tobacco index slipped 1.5%.
  • Greggs opens new tab fell 3.8% and was the top laggard on the mid-cap index after the UK’s biggest fast-food chain said its long-time CFO Richard Hutton would step down.
  • JD Sports opens new tab shed 2.1% after its retail partner Nike reported a decline in fourth-quarter revenue and indicated expectations for a further revenue drop through the first half of 2027.
  • Both the FTSE 100 and FTSE 250 recorded quarterly gains. The midcap index recorded its most significant quarterly increase in five quarters, whereas the blue-chip index concluded higher in 11 of the past 12 months.