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July 1 (Reuters) - The UK's blue-chip FTSE 100 ticked lower

on Wednesday after posting six straight quarterly gains as

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

gains in financials and industrials offsetting weakness in

energy and mining shares.

The internationally focussed FTSE 100 index fell

0.1% by 0923 GMT, while the midcap FTSE 250 rose 0.4%.

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

following an outbreak of hostilities between the two nations,

clouding the prospects of a peace agreement.

* Precious and industrial

mining shares declined, weighing on the commodity-heavy FTSE 100

with Rio Tinto and Fresnillo down 1.1% and

1.7%, respectively.

* Aerospace and defence shares extended gains

from the prior session when Prime Minister Keir Starmer pledged

an extra £15 billion ($20 billion) toward a defence boost.

Babcock, BAE Systems, Rolls-Royce and

Melrose Industries rose between 1.7% and 4.9%.

* 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 2% after

the Primark owner said it expects annual profit to be below last

year's. The food, beverage & tobacco index slipped

1.5%.

* Greggs ( GGGSF ) fell 3.8% 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.

* JD Sports shed 2.1% after its retail partner Nike ( NKE )

reported a decline in fourth-quarter revenue and said it

expects a further revenue drop through the first half of 2027.

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

The midcap index posted its biggest quarterly rise in five

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

last 12 months.