The FTSE 100 traded in a narrow and volatile range on Wednesday as investors weighed easing geopolitical tensions against a global technology and semiconductor sell-off.
By 07:25 GMT, the UK benchmark index had edged up 0.09%, oscillating between modest gains and losses throughout the morning session.
European markets were split, with Germany’s DAX falling 0.65% while France’s CAC 40 added 0.20%, reflecting the uncertain mood across the continent.
Sterling slipped 0.05% against the US dollar to $1.3188 as traders monitored both domestic political developments and shifting conditions across global markets.
Political transition remained a central focus in the UK, with Keir Starmer continuing discussions with expected successor Andy Burnham as part of a planned leadership handover process.
Starmer was also due to meet European leaders in Berlin to discuss Ukraine, NATO defence spending, and developments in Iran ahead of next month’s NATO summit.
Geopolitical pressures showed signs of easing, with tanker movements through the Strait of Hormuz gradually returning to normal levels as concerns over the Iran-Israel conflict moderated.
Energy markets reflected the calmer backdrop, with Brent crude declining 1.22% to $75.86 per barrel and West Texas Intermediate falling 1.35% to $72.22 per barrel.
Precious metals also weakened, with gold futures down 1.14% at $4,102 and spot gold falling 0.61% to $4,084 per ounce, as risk appetite improved slightly across broader markets.
Berkeley Group (LSE:BKG) reported annual pre-tax profit below market forecasts, as higher construction costs, slower development activity, and cautious buyer demand weighed heavily on profitability.
SEGRO (LSE:SGRO) confirmed it had rejected an all-share takeover proposal from Prologis (NYSE:PLD) that valued the UK logistics property group at approximately £12.6 billion.
Broker Stifel commented that “Segro’s current market cap of £10bn represents just under 20% of the entire EPRA UK REIT Index,” warning that a takeover could challenge the long-term viability of the UK listed property sector.
Andrew Saunders, analyst at Shore Capital, described the proposal as inadequate, stating it “fails to offer shareholders the necessary premium required for control of this 106-year-old British company.”
Saunders added that the offer did not “properly reflect the future uplift, both in capital and rental terms, from a significant development pipeline of warehouses and data centres and the capture of portfolio rental reversion.”
Oli Creasey, head of property research at Quilter Cheviot, said Prologis’s approach “could send ripples through the UK’s real estate investment trust sector,” adding: “the entire sector could be back in the shop window for even larger, foreign companies.”
B&M (LSE:BME) named Asda executive Atheeq Akbar as its incoming Chief Financial Officer, with the appointment expected to take effect in February 2027 as the discount retailer continues efforts to strengthen its UK operations.