Wednesday Morning Markets: FTSE 100 Slips as US-Iran Talks Stall, Defence Stocks and Polar Capital Shine

London has opened cautiously on Wednesday, with the FTSE 100 down 0.1% and the FTSE 250 flat, as investors weighed a fresh setback in US-Iran diplomacy alongside a busy corporate calendar. 

On the continent, the DAX has added 0.3% while the CAC 40 has fallen 0.4% and the Stoxx 50 has slipped 0.1%.

Defence stocks lead the blue-chip risers, with Babcock International up 4.35% and BAE Systems gaining 2.14%, as geopolitical tensions kept sentiment for the sector firm. 

Sainsbury’s has extended Tuesday’s gains, rising 2.50%, while IG Group (+1.76%) and Melrose Industries (+1.64%) have also advanced.

The standout mid-cap mover is CMC Markets, which has surged after a strong trading update this morning. 

Polar Capital has also jumped, climbing over 4.5%, reporting record year-end assets under management of £30.6bn (+43%), which have since climbed further to £44.7bn. 

On the downside, Compass Group leads the fallers, down 3.62%, alongside Entain (-2.61%) and Fresnillo (-2.15%). 

Associated British Foods has fallen 1.71% after warning its Sugar division could post a loss of up to £60m this year, hit by Middle East-driven gas price rises, even as Primark sales grew 3%. 

JD Sports has dropped 1.89%, while Greggs is down 3% on news of its CFO’s retirement.

Gold has moved lower after CNBC reported Iran had declined to meet US delegates in Doha, casting fresh doubt over talks meant to resolve the $6bn frozen-assets dispute. 

Brent crude, already down around 21% in June, extended losses.