The FTSE 100 opened 88 points higher at 10,392 amid hopes of a peace deal between the US and Iran as US President Donald Trump called off the planned military strikes and a mixed set of domestic growth figures. Oil Prices also fell; Brent crude futures declined 2.06% to $88.63 a barrel. US West Texas Intermediate (WTI) fell 1.81% to $86.12 a barrel.
International Consolidated Airlines Group surged 5.11% to £428.20, while Antofagasta advanced 4.31% to £4,022. Scottish Mortgage Investment Trust also moved higher, gaining 3.96% to £1,482.50, and Persimmon climbed 3.94% to £1,056.50. Rolls-Royce Holdings added 3.88% to £1,301.40, while Barratt Redrow rounded out the top gainers, rising 3.85% to £251.20.
On the downside, BP declined 2.90% to £529.50, while Shell slipped 2.37% to £3,198.50. BAE Systems fell 1.16% to £1,920, and The Sage Group edged lower by 0.60% to £800.80. Coca-Cola Europacific Partners also weakened by 0.14% to £7,320, while London Stock Exchange Group dipped 0.09% to £8,842.
Virgin Wines has trimmed its profit and revenue forecasts as the Iran war stifles consumer confidence; the firm cut its revenue target to £61 million, down from the £63.25 million expected by analysts, while its forecast pre-tax loss widened from £1 million to £1.5 million.
The firm said an already difficult consumer environment has been worsened in recent months by the Iran war, which “continues to exert pressure on consumer confidence and discretionary spend”.
Barclays acquired the UK arm of financial advice app GoHenry. The lender has bought the wealthtech firm off its parent company, Acorns, in a deal that is expected to close in the final quarter of the year.
GoHenry UK has a 500,000 user base with over 2 million all-time active UK members since 2012. It is run by a team of roughly 200 employees using a cloud-based tech platform.
The app uses gamified financial literacy lessons to teach kids about inflation, interest, stock markets, and cryptocurrency.
Flutter Entertainment said it plans to delist its ordinary shares from the London Stock Exchange with effect from August 3, saying it had concluded the move was in the best interests of the company and its shareholders, with its shares continuing to trade on the New York Stock Exchange under the symbol FLUT.
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Fresh data from the Office for National Statistics has revealed the economy contracted in April. UK GDP declined 0.1% last month, following on from a 0.3% expansion the month prior.
The larger picture remains positive as the economy expanded by 0.7% over the three months to April.
Liz McKewon, director of economic statistics at the ONS, said: “Services were again the driver with a particular strength in computer programming, marketing and wholesale companies”.
But she added some of the positive movement was offset by “falls in research and development… alongside a notable fall in electricity generation”.
In the US, stocks rebounded, with the tech-heavy Nasdaq jumping 2.5% as traders reversed Wednesday's sell-off. The Dow Jones Industrial Average surged 1.9%, and the S&P 500 climbed 1.8%.
In Asia, the Kospi gained 4.63% in Seoul to 8,123.62, the Nikkei rose 2.81% in Tokyo, and the Shanghai composite advanced 1.12%, while Hong Kong’s Hang Seng gained 1.40%. In India, Nifty 50 and Sensex also edged up by 0.70% and 0.92%, respectively.