The FTSE 100 spent much of Thursday searching for direction before finishing up 11.13 points, or 0.1%, at 10,443.47. The FTSE 250 fared rather better, closing up 0.5% at 22,947.92, its highest level in over a month.
It was a scrappy session dominated by conflicting geopolitical headlines and a clutch of corporate updates that failed to impress, with miners ultimately doing the heavy lifting to keep the index in positive territory.
The day’s mood was set early by the Middle East, where progress on a peace deal remained elusive. Iran’s supreme leader was reported to have ordered that the country’s enriched uranium must not be sent abroad – a demand that threatened to stall negotiations – though the report was later denied, leaving investors, as one analyst put it, “none the wiser.”
President Trump described talks as being in their “final stages” while simultaneously warning that the US might have to strike Iran “even harder.” With the Strait of Hormuz still closed, Brent crude for July delivery pushed back above $107 a barrel, up from $105.26 at Wednesday’s London close.
The UK’s composite PMI fell to 48.5 in May from 52.6 in April, the lowest reading in 13 months and the first sub-50 print since April 2025. Services led the deterioration, with businesses reporting falling output, surging inflation, supply shortages and job cuts simultaneously.
Pantheon Macroeconomics chief economist Rob Wood said the figures made a July Bank of England rate hike look “unlikely,” though he stopped short of abandoning the call entirely, noting that PMI data tends to overreact to political uncertainty. Sterling slipped 0.4% to $1.3401 as the data landed.
Results season provided its own drags. Autotrader fell 8.9% after full-year operating profit of £392.7 million came in below the £398.7 million consensus, with revenue of £624.3 million also short of forecasts. Management’s 2027 guidance of £395-415 million operating profit sat well below the £418.3 million the market had expected, and Citigroup pointed to softer retailer forecourt numbers and ongoing friction with the Deal Builder product as the main culprits.
BT Group shed 4.9% despite upgraded dividend guidance, as investors concluded the new policy fell short of what had been anticipated. Adjusted revenue fell 4% to £19.6 billion, fractionally below consensus, while EBITDA came in flat at £8.2 billion.
Against that backdrop, miners provided crucial support. Rio Tinto rose 1.9%, Antofagasta climbed 1.8% and Glencore added 1.4%, as gold traded at $4,508 an ounce. Among the stronger blue-chip performers, 3i Group continued its volatile run with a gain of 3.3%, while SSE added 3.1% and Babcock International rose 2.6%.
On the FTSE 250, QinetiQ was the clear standout, jumping 8.9% after hiking its dividend by 24% and extending its share buyback by £200 million following a record year for order intake. Operating margins improved sharply and free cash flow rose 41%, with management guiding for more than £550 million in cumulative free cash flow between 2027 and 2029.
Investment platform AJ Bell surged 13.6% on strong results and upgraded shareholder return plans. Mitchells & Butlers went the other way, falling 7.9% on interim results reflecting the pressure on consumer spending, with the pub and restaurant operator contending with elevated costs and cautious customers.
US markets offered little comfort, with the Dow Jones down 0.3%, the S&P 500 off 0.4% and the Nasdaq slipping 0.6%. Nvidia’s shares fell 1.9% despite quarterly results that comfortably topped forecasts, underlining just how elevated expectations have become.
In Europe, the CAC 40 and DAX both closed lower, down 0.4% and 0.5% respectively.