London’s stock market closed lower on Wednesday as investors weighed geopolitical risks and anticipated major US tech earnings and the Federal Reserve’s rate decision.
The FTSE 100 fell 0.5%, the FTSE 250 lost 0.1%, while the AIM All-Share gained 0.9%.
Tensions in the Middle East added caution to trade, with US President Donald Trump warning Iran that time was running out to prevent military intervention after Tehran refused to hold negotiations. A US naval strike group led by the aircraft carrier USS Abraham Lincoln is positioned in the region, while Iran pledged unprecedented retaliation in response to any attack.
Oil prices rose on the unrest, lifting BP and Shell shares 1.0% and 1.3% respectively. Precious metals also gained, with Endeavour Mining up 4.3% on fresh gold price increases. Fresnillo fell 0.6% after revising 2026 silver and gold output forecasts.
In retail, Burberry dropped 4.7% following weak guidance from French rival LVMH.
Boohoo surged 5.5% after raising full-year profit guidance, citing strong trading at Debenhams and improved performance at Pretty Little Things.
Life Science REIT jumped 20% after agreeing to a £150 million takeover by British Land, which itself rose 1.4%.
In the US, tech stocks were in focus ahead of earnings reports from Tesla, Microsoft, and Meta Platforms after the close.
Markets expect the Federal Reserve to hold interest rates at 3.5%-3.75%, with Chair Jerome Powell likely to emphasise flexibility in future policy depending on the economic outlook.
The Fed announces its decision at 19:00 GMT.