The FTSE 100 remained confined to a tight trading band for the 10th consecutive session, moving less than 0.5% in either direction and slipping to its lowest level in more than a week. Investor sentiment stayed cautious amid ongoing uncertainty around a potential Middle East peace agreement. Tensions were underscored as the US and Iran appeared to harden their positions in talks concerning the Strait of Hormuz, despite Pakistan’s defense minister suggesting the two sides were “close to some sort of arrangement.”
Attention also turned to upcoming US inflation data, seen as pivotal for shaping expectations around the Federal Reserve’s future interest-rate decisions. Among major UK stocks, oil giants Shell and BP eased 0.3% and 0.4%, respectively, while AstraZeneca, GSK and Unilever also traded lower. Retail and consumer-facing names were under pressure, with Burberry, Tesco and JD Sports falling roughly 1.7% to 2%.
In contrast, aerospace and defense names provided support to the index: BAE Systems and Babcock each gained around 1.5%, buoyed by persistent strength across the defense sector.
