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June 19 (Reuters) - UK shares were largely flat on Friday as
U.S.-Iran peace talks in Switzerland were called off, keeping
risk appetite in check, though gains in energy and healthcare
stocks lent support.
The blue-chip FTSE 100 index was down 5.40 points,
or 0.05%, at 10,394.30 by 0948 GMT, while the domestically
focused FTSE 250 midcap index fell 0.5% to 23,210.43,
and remained on track for a weekly drop.
* Miners weighed on the index, with Anglo American
down 2.2%, Glencore ( GLCNF ) off 1.5% and Rio Tinto 1.1%
lower.
* Global shares fell, while oil prices got a boost after
Washington and Tehran called off peace talks, which traders had
hoped would ease supply risks around the Strait of Hormuz.
* Meanwhile, Labour mayor Andy Burnham cleared a path on
Friday to ousting British Prime Minister Keir Starmer,
potentially ushering in a new bout of political instability.
* "The strength of his (Burnham's) mandate may determine how
far he might go with anything one might call a market-unfriendly
approach - i.e., higher borrowing, redistributive wealth taxes,
etc," said Saxo UK Investor Strategist Neil Wilson.
* British government bond yields rose to a one-week high
increasing slightly more than those for German debt, after
higher-than-expected borrowing numbers and Burnham's election
victory.
* Energy stocks were the main source of support. BP
rose 1.7% and Shell gained 1.0%, as Brent crude held
near $79.50 a barrel.
* AstraZeneca ( AZN ) added 1.3%, leading healthcare names
higher, while GSK gained 0.9%.
* British insurer Admiral Group slipped 5% after
RBC downgraded the stock to "sector perform" ahead of results.
* Barratt Redrow ( BTDPF ) named former British Airways
finance chief Rebecca Napier as its new chief financial officer.
The homebuilder's shares dropped 0.5%.
* Entain ( GMVHF ) shares ticked higher after Reuters reported
the Ladbrokes-owner has begun exploring options for its joint
venture in Central and Eastern Europe, including a possible
sale.