London midday: Stocks stay down but FTSE outperforms European peers
By Michele Maatouk
Date: Tuesday 17 Jun 2025
(Sharecast News) - London stocks were still weaker by midday on Tuesday as investors mulled the latest developments in the conflict between Israel and Iran, after US President Trump urged Iranians to evacuate Tehran and insisted had not reached out to the country for peace talks.
The FTSE 100 was down 0.5% at 8,832.72, outperforming its European peers thanks to a strong showing from heavily-weighted oil majors BP and Shell, and after UK Prime Minister Keir Starmer and Trump signed off a trade deal at the G7 summit in Canada on Monday.
Kathleen Brooks, research director at XTB, said: "This is a coup for the UK. Tariffs will be 10% for auto exports to the US and aerospace exports will not be subject to tariffs. This is the first trade deal the US has signed since the Liberation Day reciprocal tariff announcement. Although this is good news for the UK, aluminium and steel exports are currently still subject to 25% tariffs, although the US Commerce Secretary is working on putting in place a quota system for steel and aluminum exports, which the UK hopes will be generous."
Commenting on the mood in markets more generally, she said: "European stocks are extending losses as we move through the European morning session, and US equity market futures also point to a lower open. The oil price is also extending gains towards $74.50, as risk aversion takes hold once more. However, the gold price is only moderately higher. Headline risk from the Iran/ Israel conflict is once again impacting financial markets, after taking a reprieve on Monday.
"Stocks are lower after Donald Trump's abrupt departure from the G7 to monitor events in the Middle East from the White House. This suggests that things could be about escalate in this conflict. The French President initially said that President Trump was leaving due to a ceasefire between Iran and Israel, but that was rebuffed by President Trump. This has spooked financial markets on Tuesday morning."
In a post on Truth Social earlier, Donald Trump said he had not reached out to Iran for "peace talks in any way, shape, or form".
He added: "This is just more HIGHLY FABRICATED, FAKE NEWS! If they want to talk, they know how to reach me. They should have taken the deal that was on the table - Would have saved a lot of lives!!!"
In equity markets, BP and Shell were the top gainers as oil prices rose, while BA and Iberia owner IAG, Wizz Air and easyJet all flew lower amid the prospect of higher fuel costs.
Ashtead slipped as the equipment rental firm reported a drop in full-year adjusted pre-tax profit.
On the upside, construction services group Morgan Sindall surged after it said that full-year results for 2025 will be "significantly ahead" of previous expectations due to a stronger-than-forecast performance from the Fit Out division in the second quarter.
B&M European Value Retail sparked after the discount retailer's new chief executive picked up more than half a million pounds worth of shares. Tjeerd Jegen, who took on the role of CEO on Monday, bought 197,900 shares for £523,559.60. The transactions were made between 10 and 13 June.
Market Movers
FTSE 100 (UKX) -0.48%
FTSE 250 (MCX) 21,223.23 -0.29%
techMARK (TASX) 5,069.70 -0.57%
FTSE 100 - Risers
BP (BP.) 388.90p 1.62%
Associated British Foods (ABF) 2,091.00p 1.06%
Shell (SHEL) 2,653.00p 1.05%
Fresnillo (FRES) 1,423.00p 0.42%
Beazley (BEZ) 933.00p 0.38%
Unite Group (UTG) 837.00p 0.36%
Informa (INF) 802.60p 0.35%
Tesco (TSCO) 395.40p 0.33%
BT Group (BT.A) 185.55p 0.30%
Sainsbury (J) (SBRY) 286.40p 0.28%
FTSE 100 - Fallers
Bunzl (BNZL) 2,244.00p -2.52%
London Stock Exchange Group (LSEG) 10,865.00p -2.21%
International Consolidated Airlines Group SA (CDI) (IAG) 320.10p -2.20%
Entain (ENT) 847.20p -2.17%
Halma (HLMA) 3,092.00p -1.90%
Standard Chartered (STAN) 1,160.00p -1.69%
Pershing Square Holdings Ltd NPV (PSH) 3,852.00p -1.63%
Intermediate Capital Group (ICG) 1,932.00p -1.58%
Flutter Entertainment (DI) (FLTR) 19,740.00p -1.45%
Coca-Cola HBC AG (CDI) (CCH) 3,866.00p -1.33%
FTSE 250 - Risers
Morgan Sindall Group (MGNS) 4,465.00p 16.28%
Ocean Wilsons Holdings Ltd. (OCN) 1,575.00p 6.78%
Harbour Energy (HBR) 215.00p 5.29%
AO World (AO.) 99.00p 3.13%
B&M European Value Retail S.A. (DI) (BME) 263.40p 2.93%
Diversified Energy Company (DEC) 1,087.00p 2.84%
Renishaw (RSW) 2,790.00p 2.39%
Ithaca Energy (ITH) 167.80p 2.32%
Safestore Holdings (SAFE) 655.50p 2.02%
Trustpilot Group (TRST) 234.20p 1.74%
FTSE 250 - Fallers
Keller Group (KLR) 1,476.00p -3.53%
TBC Bank Group (TBCG) 4,345.00p -3.44%
Wizz Air Holdings (WIZZ) 1,104.00p -3.24%
Oxford Instruments (OXIG) 1,732.00p -3.02%
Burberry Group (BRBY) 1,085.00p -2.34%
Harworth Group (HWG) 171.50p -2.28%
Investec (INVP) 509.00p -2.12%
Syncona Limited NPV (SYNC) 88.00p -2.11%
NCC Group (NCC) 163.80p -2.03%
Kainos Group (KNOS) 735.50p -1.93%
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