The FTSE 100 Index Closes 0.22% Lower

The FTSE 100 Index fell 23 points or 0.22 percent on Wednesday to close at 10821 points. Leading the losses are Burberry (-4.57%), Marks & Spencer (-3.78%) and Relx (-2.95%). Top gainers were Admiral (2.90%), Fresnillo (2.75%) and 3i (2.46%).

The FTSE 100 extended its modest losses for a third consecutive session on Wednesday as investors awaited further developments in the Middle East and assessed the latest US inflation data. The index was weighed down by weakness in major oil and pharmaceutical stocks, with Shell and BP falling more than 1% each, while AstraZeneca dropped 1.5% and GSK declined 2.1%. Unilever also fell more than 1%. Tesco was among the biggest decliners, losing more than 2% after Shore Capital downgraded the retailer to “hold.” Meanwhile, US inflation data came in broadly in line with expectations, easing concerns over an imminent Federal Reserve rate hike and providing some relief amid persistent geopolitical uncertainty. Brent crude fluctuated on Wednesday but remained elevated after recent gains, as uncertainty continued over the prospects of an agreement to reopen the Strait of Hormuz.

The FTSE 100 traded within a narrow range of less than 0.5% in either direction for a 10th consecutive session, slipping to a more than one-week low as investors remained cautious amid uncertainty over a potential Middle East peace deal. The US and Iran appeared to harden their positions in negotiations over the Strait of Hormuz, despite Pakistan’s defense minister saying the two sides were “close to some sort of arrangement.” Meanwhile, markets looked ahead to key US inflation data, which could influence expectations for the Federal Reserve’s interest-rate path. Oil majors Shell and BP fell 0.3% and 0.4%, respectively, while AstraZeneca, GSK and Unilever also declined. Burberry, Tesco and JD Sports dropped around 1.7% to 2%. On the upside, aerospace and defense companies BAE Systems and Babcock gained around 1.5% each, supported by continued strength in the sector.