The FTSE 100 edged lower on Wednesday, dragged down by a series of corporate updates and a pullback in oil prices that weighed on energy producers. Associated British Foods lost more than 3% after cautioning that its sugar division had deteriorated further due to the conflict in the Middle East, even as plans to spin off its Primark fashion retail arm continued to advance. Among energy majors, Shell and BP fell 1.8% and 2.5%, respectively, in response to weaker crude prices.
In contrast, financial services names and defense stocks lent some support to the index. Aerospace and defense group BAE Systems gained 1.7%, submarine contractor Babcock climbed more than 4.5%, and engine-maker Rolls-Royce added 0.8%.
On the macroeconomic front, Nationwide reported that UK house prices were unchanged on a monthly basis in June, undershooting expectations for growth. However, the annual pace of house price increases accelerated to 2.2%, helped by an improving market outlook as expectations of further Bank of England interest rate hikes began to ease.
