London open: FTSE nudges lower after fresh US-Iran strikes; B&M surges

(Sharecast News) - London stocks nudged lower in early trade on Wednesday following fresh strikes by the US and Iran, as Donald Trump insisted peace talks are ongoing.

At 0823 BST, the FTSE 100 was down 0.1%, while Brent crude was 2% higher at $97.96 a barrel.

In a post on Truth Social on Tuesday, Trump dismissed recent reports that the US and Iran had stopped peace talks.

"Fake News Reports that the Islamic Republic of Iran, and the U.S.A., stopped speaking a few days ago are false and erroneous," he said. "The conversations between us have been going on continuously, including four days ago, three days ago, two days ago, one day ago, and today.

"Where they lead, one never knows, but as I told Iran, 'It's time, one way or another, for you to make a Deal. You've been doing this for 47 years, and it cannot be allowed to go on any longer!"

Patrick Munnelly at Tickmill Group said: "Drone and missile attacks have been reported across the Middle East, with Iran targeting countries including Bahrain and Kuwait, while the US struck an IRGC control centre on Qeshm Island. Brent is now above yesterday's range at around $97/bbl, showing that the oil market is still quick to price renewed escalation even if equities remain more focused on AI and tech momentum."

Investors were also mulling the Trump administration's proposed additional tariffs of 10% or 12.5% on imports from 60 economies, including the European Union and the UK.

Munnelly said: "Implementation is not immediate, with at least a month of consultation ahead, but the direction of travel matters. If tariffs return while oil is already elevated, they broaden the inflation impulse and make it harder for central banks to dismiss as a one-off energy shock.

"Markets may not price the full effect today because the timeline is delayed, but they are rebuilding the policy risk premium."

In equity markets, Howden Joinery jumped after saying it has agreed to buy DIY Kitchens for £390m. DIY Kitchens is "a high quality vertically integrated online kitchen business" through which Howdens will be able to access, directly, non-trade consumers, it said.

B&M European Value Retail surged as it posted a sharp slide in annual profits after a "challenging" year which saw British sales weaken as costs rose, but EBITDA was comfortably within guidance and chief executive Tjeerd Jegen struck an upbeat tone on the outlook.

Electricals retailer Currys nudged higher as it appointed insider Fredrik Tønnesen as chief executive to replace Alex Baldock.

Ninety One and Discoverie both lost ground after results.