London’s blue chip index continued to outperform its peers in Paris and Frankfurt at Wednesday midday, on a day filled with first quarter updates and not many economic indicators.
The FTSE 100 index was down just 1.50 points at 8,601.42. The FTSE 250 was up 28.92 points, 0.1%, at 20,788.59, and the AIM All-Share was down 2.44 points, 0.3%, at 728.65.
The Cboe UK 100 was down 0.1% at 857.97, the Cboe UK 250 was up 0.1% at 18,172.43, and the Cboe Small Companies was up 0.2% at 15,743.48.
The UK cannot afford to adopt an ‘ostrich strategy’ as the US withdraws from guaranteeing European security, the chair of a parliamentary committee has warned.
Matt Western, who leads the Joint Committee on the National Security Strategy, urged the government on Wednesday to reassess the UK’s reliance on the US as it prepares to publish a new national security strategy.
In a letter to senior Cabinet minister Pat McFadden, Western said previous strategies had been ‘underpinned by loadbearing assumptions of America’s place in the world’ and commitment to international security.
He said: ‘We caution against any overly hasty moves to plan for a US drawdown. But we also do not endorse an ostrich strategy.’
The UK currently has significant defence and security ties with the US, including the intelligence sharing Five Eyes agreement.
American firms also maintain military equipment, including the F35 jet and the Trident missiles that form Britain’s nuclear deterrent, leading some to express concern that Washington could undermine UK security by refusing to supply spare parts.
Airtel Africa was one of the FTSE 100’s top winners around midday, up 2.9%.
The provider of telecommunications and mobile money serivces began on Wednesday the second tranche of its up to $100 million share buyback programme, for a maximum of $55 million.
Airtel Africa expects the tranche to end on or before November 19. The buyback will be run by Barclays Capital Securities.
Corcel rose 24%.
The oil exploration and production firm reported it has conditionally acquired an additional 30% gross interest in its operation Block KON-16 in the Kwanza Basin, onshore Angola, from a joint venture partner. The deal was made via subsidiary Atlas Petroleum Exploration Worldwide Ltd and is subject to government approval.
Corcel also announced the signing of a binding heads of terms with Sintana Energy, for the sale of a 5% net interest in Block KON-16 to Sintana at a price of $2.5 million. The deal also involved a joint study and bid agreement with Sintana, which will target further opportunities in Angola.
The two agreements, when completed, will increase Corcel’s net interest in Block KON-16 to 71.5% from 49.5%.
At the other end, Empyrean Energy fell 62%.
The oil and gas development company has decided to plug and abandon the Wilson River-1 well and release the rig, as results from a drill stem test indicated no moveable hydrocarbons.
This was despite the well having potential oil pay, indicated by the quad combo logging run, notes Chief Executive Officer Tom Kelly. ‘The conclusion is that there has been inadequate buildup of hydrocarbons through effective migration within the trap to displace enough formation water,’ CEO Kelly explained.
Spirax Group was down 6.2%.
The thermal energy and fluid technology company said it has delivered low single-digit organic revenue growth, with demand trends in the first four months of this year consistent with those highlighted in its 2024 results in March.
This included good demand growth in its Watson-Marlow Fluid Technology Solutions business, strong demand for its industrial process heating solutions in Electric Thermal Solutions, and higher demand across all markets in Steam Thermal Solutions, Spirax said.
However, the firm said this was offset by decreased demand for large projects, especially in China and Korea which comprised 22% of STS revenue last year.
Looking ahead, Spirax said: ‘We continue to anticipate organic growth in group revenues consistent with that achieved in 2024 and group adjusted operating profit margin ahead of the currency adjusted 19.4% margin in 2024. We also anticipate cash conversion above 80%.’
In European equities on Wednesday, the CAC 40 in Paris was 0.7% lower, while the DAX 40 in Frankfurt faded 0.6%.
The pound was quoted higher at $1.3342 at midday on Wednesday in London, compared to $1.3278 at the equities close on Tuesday. The euro also stood higher, at $1.1237 against $1.1174. Against the yen, the dollar was trading lower at JP¥145.99 compared to JP¥147.84.
‘Gold prices slipped on Wednesday, giving back gains from the previous session, as traders consider geopolitical and trade developments,’ commented Kudotrade analyst Konstantinos Chrysikos. ‘Trump’s Middle East visit could help reduce geopolitical concerns as he announces lifting sanctions in Syria. Hopes of positive developments in Eastern Europe could also weigh on the metal. Russia and Ukraine are set for high-level talks in Istanbul, raising hopes of a potential ceasefire.
‘At the same time, optimism over US-China trade relations continued to undermine safe-haven demand. The two economic superpowers agreed to temporarily reduce tariffs on each other‘s goods for 90 days, easing concerns over the prolonged impact of the trade tensions.’
Gold was quoted lower at $3,232.67 an ounce against $3,250.97.
Stocks in New York were called lower. The Dow Jones Industrial Average, the S&P 500 index, and the Nasdaq Composite were all called down 0.1%.
China has hit out at the UK-US trade deal in a potential blow to the UK government’s bid to revive relations with the country, as Beijing said it was a ‘basic principle’ that such agreements should not target other nations.
Britain’s deal with America, which was the Trump administration’s first since it unveiled sweeping global tariffs last month, includes an agreement to co-ordinate to ‘address non-market policies of third countries.’
It is understood that this clause is intended to prevent the UK becoming a ‘backdoor’ for circumvention of American measures on trade and security in relation to nations such as China through its exports to the country.
‘Co-operation between states should not be conducted against or to the detriment of the interests of third parties,’ Beijing’s foreign ministry told the Financial Times. The statement poses difficulties for Keir Starmer’s government as it seeks to navigate its trading position between two economic superpowers.
Meanwhile, US President Donald Trump urged vigorous enforcement of sanctions on Iran on Wednesday, even as he said he hoped to reach a negotiated agreement in nuclear talks.
‘I want to make a deal with Iran. I want to do something, if it’s possible,’ Trump told a summit of Gulf Arab leaders in Riyadh. ‘But for that to happen, it must stop sponsoring terror, halt its bloody proxy wars, and permanently and verifiably cease its pursuit of nuclear weapons.
‘I’m strongly urging all nations to join us in fully and totally enforcing the sanctions that I just placed on Iran,’ he said.
It was unclear what he meant by ‘just placed’ but the Trump administration in recent weeks has imposed sanctions on a series of entities and individuals linked to Iran’s oil industry and nuclear programme.
Brent oil was quoted down at $65.84 a barrel at midday in London on Wednesday from $66.21 late Tuesday.
Still to come on Wednesday’s economic calendar, a US EIA crude oil stocks reading at 15:30 BST.
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