FX.co ★ FTSE 100 Recovers Slightly on Peace Talks Hopes

The FTSE 100 edged up 0.2% to 10,240 on Wednesday, recouping only a small portion of Tuesday’s 1.4% decline and remaining close to three-week lows. Investors clung to hopes for a Middle East peace breakthrough, despite renewed US–Iran strikes that dimmed prospects for a swift resolution. Sentiment was buoyed in part by President Donald Trump’s remarks suggesting a deal to reopen the Strait of Hormuz was nearing. At the same time, UK banking stocks extended their slide, with HSBC losing nearly 2% and Standard Chartered down 1%, after a JP Morgan report flagged the broader repercussions of recent Chinese regulatory changes.