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(Alliance News) - Stocks in London ended mixed on Wednesday and were showing signs of stability following Iran's retaliation against the US overnight.
US President Donald Trump tweeted "all is well" following the attacks which were carried out in retaliation for the killing of Iranian General Qassem Soleimani.
US officials said 15 missiles were fired, with 10 striking the Ain al-Asad base 100 miles west of Baghdad, one striking a base in Irbil in northern Iraq's semi-autonomous Kurdish region, and another four missing their targets.
Speaking just after the London market close on Wednesday, Trump said his administration will impose new sanctions on Iran in response to the attack. He did not specify how those sanctions would be applied.
Trump also said Iran appeared to be "standing down" and said no Americans were harmed in Iran's ballistic missile strike on the two US bases in Iraq.
The FTSE 100 index closed up 1.08 points at 7,574.93. The UK flagship index fell to an intraday low of 7,524.96 in morning trade.
The FTSE 250 ended down 180.76 points, or 0.8% at 21,651.92, and the AIM All-Share closed flat at 958.22.
The Cboe UK 100 ended flat at 12,824.19, the Cboe UK 250 closed down 0.7% at 19,592.34, and the Cboe Small Companies ended up 0.6% at 12,444.43.
In Paris the CAC 40 ended up 0.3%, while the DAX 30 in Frankfurt ended up 0.7%.
"The markets were volatile today on account of the Iranian attacks on Iraqi bases - that often house US military personnel. The strikes were a retaliation for the killing of a military commander by the US last week. The Iranian government hinted that it is not interested in a full-scale war with the US. Tensions might be on the cusp of deescalating, and we have seen some confidence come back into stocks," said CMC Markets analyst David Madden.
In the FTSE 100, BT Group ended up 2%. Openreach welcomed UK telecoms regulator Ofcom's latest proposals concerning the rollout of fibre networks.
Openreach is the wholly-owned broadband infrastructure subsidiary of the telecommunications firm, though it has its own board to ensure some independence. Ofcom earlier Wednesday unveiled four proposals to "supercharge" the expansion of the UK's fibre infrastructure.
At the other end of the large cap index, NMC Health ended the worst performer, down 15% at 1,263.00 pence after Credit Suisse confirmed two shareholders have sold off 15% of the company.
After the London market close on Tuesday, Credit Suisse said Saeed Mohamed Butti Mohamed Khalfan Al Qebaisi and Khaleefa Butti Omair Yousif Ahmed Al Muhairi were to sell shares worth around USD490 million in NMC. This was to reduce their own debts, Credit Suisse said.
On Wednesday morning, the bank confirmed Al Qebaisi and Al Muhairi had sold a combined 31.2 million shares in NMC, a 15% stake. The shares were sold at 1,200 pence each, netting them USD493 million. Following the sale, Al Muhairi will own just short of 13% of NMC's shares. Al Qebaisi will own 4.7%. However, they will both have an additional 7% combined through a separate investment vehicle.
NMC shares have been under pressure since Carson Block's short-selling firm Muddy Waters launched a scathing attack on the company late last year.
TUI closed down 4.2% in a negative read-across from US aerospace giant Boeing after the Ukraine International Airlines Boeing 737 went down just outside Tehran after taking off bound for Kiev, killing all on board, on Wednesday morning.
The plane, a 737-800, is a predecessor version of the Boeing 737 MAX, which has been grounded following two earlier crashes.
The crash was likely to have been caused by "technical difficulties", Ali Khashani, spokesman for Imam Khomeini International Airport told Iran's Press TV.
Boeing shares were down 1.5% in New York.
In the FTSE 250, Finablr ended the worst performer, down 17% at 128.10p after Credit Suisse confirmed two major shareholders - the same pair who sold shares in NMC Health - sold a combined 6% stake in payments and foreign exchange services provider.
After the London market close on Tuesday, the investment bank said Saeed Mohamed Butti Mohamed Khalfan Al Qebaisi and Khaleefa Butti Omair Yousif Ahmed Al Muhairi were to sell shares worth around USD75 million in Finablr. Credit Suisse confirmed on Wednesday the two sold 40.5 million Finablr shares in total at 135 pence each, for USD72 million.
The Swiss bank did not specifically say how many shares they now hold, but did state that "residual" holdings are subject to a 90-day lock-up period.
Earlier Wednesday, Finablr said it has contained a ransomware attack on its Travelex business, and it is confident no customer data has been stolen. Last Thursday, Finablr said all Travelex sites had been taken offline after a software virus attack on New Year's Eve. It has since been forced to provide foreign exchange services manually in branches.
Elsewhere, Sirius Minerals closed up 35% after FTSE 100 miner Anglo American confirmed advanced talks to buy the London-listed potash mine developer, which owns the Woodsmith polyhalite mine near Whitby in North Yorkshire. Anglo shares closed flat.
The pound was quoted at USD1.3088 at the London equities close, down from USD1.3118 at the close Tuesday.
European Union negotiators begun work to decide what its members want to get out of post-Brexit trade talks with the UK.
Member state officials will meet intensively in Brussels over the next three weeks, in a effort to identify and plug potential cracks in European unity before trade talks begin with the UK, probably not before March 1.
European sources said teams would devote meetings to a long list of themes and issues, including sensitive items such as fishing, citizens' rights and security. They will also discuss potential tariffs on UK goods and future ties with London's financial services sector, with a roundup of the talks released after each meeting.
The UK is expected to exit the EU on January 31 after Prime Minister Boris Johnson won a large parliamentary majority to do so in the general election in December.
Johnson insists a trade deal with the EU will have to be negotiated and ratified by the end of the year – a timetable that European Commission president Ursula von der Leyen warned was "extremely challenging".
She said on Wednesday that Britain could end up with limited access to European markets if London refuses to extend talks beyond its 11-month transition period.
The euro stood at USD1.1114 at the European equities close, lower than USD1.1138 late Tuesday.
Against the yen, the dollar was trading at JPY108.70, firm from JPY108.59 late Tuesday.
Stocks in New York were mostly higher at the London equities close amid hopes that US-Iran hostilities will not worsen while US hiring data topped expectations.
The DJIA was flat, the S&P 500 index up 0.1% and the Nasdaq Composite up 0.2%.
On the economic front, private companies added 202,000 jobs in December, according to payrolls firm ADP. The figures beat analyst expectations ahead of Friday's US jobs report.
Brent oil was quoted at USD65.90 a barrel at the London equities close, sharply lower than USD68.02 at the close Tuesday. The North Sea benchmark hit a high of USD71.28 overnight.
Oil prices dipped in afternoon trading, after briefly spiking when Iran launched missile attacks on US targets in Iraq.
The strikes, launched in retaliation for the assassination of Soleimani last Friday, sent Brent and New York crude to multi-month peaks before profit-taking prevailed.
Iran said it had "concluded" its missile attacks for now, and analysts pointed out that oil traders had many sources at their disposal in any event.
"Sooner or later investors will realise that the plentiful non-OPEC supply will more than make up for any short-term disruptions in the Middle East," noted Forex.com analyst Fawad Razaqzada.
Gold was quoted at USD1,573.70 an ounce at the London equities close, firm against USD1,568.77 late Tuesday. The precious metal hit a seven-year high of USD1,611.20 overnight but eased back as the dollar strengthened.
The economic events calendar on Thursday has China inflation readings overnight, Germany industrial production figures at 0700 GMT and the eurozone unemployment rate at 1000 GMT.
The UK corporate calendar on Thursday has third quarter results from supermarket chain Tesco and food and clothing retailer Marks & Spencer. There are also trading statements from greeting card retailer Card Factory, home furnishings retailer Dunelm Group and asset manager Rathbone Brothers.
By Arvind Bhunjun; arvindbhunjun@alliancenews.com
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