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London's FTSE 100 inches lower as Middle East concerns weigh
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London's FTSE 100 inches lower as Middle East concerns weigh
Jul 1, 2026 10:09 AM

(Updates after market close)

July 1 (Reuters) - The UK's blue-chip FTSE 100 slipped on

Wednesday, with healthcare and energy shares leading declines,

as investors monitored the latest setback in U.S.-Iran talks.

The internationallyfocused FTSE 100 index closed

down 0.2%, while the mid-cap FTSE 250 jumped 1.4% to a

one-week high.

* Iran said on Tuesday it would not meet top U.S. envoys,

following an outbreak of hostilities that clouded the prospects

of a peace agreement.

* Healthcare shares dropped 1.6%, weighing on

the blue-chip index, with heavyweights AstraZeneca ( AZN ) and

GSK down 1.7% and 2.5% respectively.

* Oil and gas shares also weighed, with Shell and

BP dropping over 2% each on declining oil prices.

* Precious metal mining shares rose 3.3%,

keeping losses in check.

* Aerospace and defence shares extended gains

from the prior session when Prime Minister Keir Starmer pledged

an extra £15 billion ($20 billion) of spending on defence.

Babcock, BAE Systems and Rolls-Royce

rose between 1.1% and 5.2%.

* PMI data showed that Britain's manufacturing activity

cooled in June despite a boost from stockpiling ahead of price

hikes and supply chain disruption worries.

* Among individual movers, AB Foods dropped 3.1%

after the Primark owner said it expects annual profit to be

below last year's.

* Greggs ( GGGSF ) fell 3% and was the top laggard on the

mid-cap index after the UK's biggest fast-food chain said its

long-time CFO Richard Hutton would step down.

* National Grid said it would invest $1.75 billion

for a 35% stake in Joulent, a U.S. energy platform developing

power infrastructure for data centres. Shares were down 3%.

* Both the FTSE 100 and FTSE 250 notched quarterly gains.

The mid-cap index posted its biggest quarterly rise in five

quarters, while the blue-chip index ended higher in 11 of the

last 12 months.

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