UK equity markets opened in mixed territory on 1 July 2026, with the FTSE 100 edging fractionally higher to 10,497.60 as investors digested a range of corporate and macroeconomic signals.
The Euronext 100 slipped 0.02 per cent to 1,925.91 while Germany’s DAX fell 0.04 per cent to 24,986.41, reflecting cautious sentiment across European bourses ahead of key economic data.
US markets closed on a stronger footing overnight, with the Nasdaq finishing at 26,213.72 and the S&P 500 gaining to 7,499.36, buoyed by technology sector momentum.
Investors remained watchful ahead of PMI figures, eurozone inflation data, central bank commentary and diplomatic developments surrounding Iran-Qatar relations.
In commodity markets, Brent crude firmed as hopes for renewed US-Iran engagement faded, while copper, natural gas and gold all moved lower.
Currency markets saw the US dollar strengthen against sterling, while the euro, Swiss franc and Australian dollar were little changed and the Japanese yen weakened.
Associated British Foods (LSE:ABF), the owner of Primark, warned that full-year profits are expected to be lower after higher natural gas prices drove up costs within its sugar business.
The update signals continued pressure on energy-intensive operations at ABF, even as the group’s retail arm has shown relative resilience in recent trading periods.
ABF reported that group revenue rose 3 per cent at actual exchange rates to £5.30 billion in its third quarter, though the figure was flat in constant currency terms.
The company’s Sugar division now faces an expected adjusted operating loss of between £25 million and £60 million in FY2026, with management flagging a further deterioration possible in FY2027.
Meanwhile, Topps Tiles (LSE:TPT) reported that prolonged hot weather had added to already challenging trading conditions, with the heatwave reducing customer footfall at its stores.
The update from Topps Tiles underlines the particular pressures facing UK discretionary retailers, even as broader consumer spending data has shown some signs of resilience.
Bitcoin traded slightly higher versus sterling, reaching £44,310, as cryptocurrency markets moved modestly in early London trading on Wednesday morning.