London close: FTSE ends on back foot as oil prices head north.


London stocks closed in negative territory on Wednesday, giving up earlier gains, as oil prices once again pushed higher despite better-than-expected inflation data in the US.

Canary Wharf

Source: Sharecast

The FTSE 100 closed down 0.29% at 10,606, while Brent crude was up 1% at $103.73 a barrel, and West Texas Intermediate was 2% stronger at $91.32. Chris Beauchamp, chief market analyst at IG, attributed the oil price rise to reports of an attack on a Saudi oil processing facility by Houthi rebels. “Until the damage becomes clear, the market will take the opportunity to boost prices,” he said. “Even as we move into the fourth quarter, normally positive for stocks, it is clear that geopolitical tensions will continue to dog the outlook.”

US inflation data was better than forecast, rising 0.3% last month. “A lower-than-expected increase gave Wall Street a boost as it implied that Federal Reserve is in no rush to put up interest rates again soon,” said Danni Hewson, head of financial analysis at AJ Bell. “While it provided a moment of relief, the fact that oil prices are holding firm at elevated levels means inflation fears won’t be banished completely.”

Back over this side of the pond, and Hewson noted: “European markets were lacklustre as investors took stock of events and adjusted portfolios at the end of the quarter. The FTSE 100 fell by less than other major European indices as miners and utilities were in demand, helping offset a sell-off in telecoms and energy stocks.”

On the UK macro front, figures from the Office for National Statistics showed the economy grew 0.5% in April to June, up from a previous estimate of 0.4% and following 0.6% growth in the first quarter. Economists were expecting growth to be unrevised.

The services sector grew by 0.6%, the construction sector by 0.8% and the production sector by 0.1%.

ONS director of economic statistics Liz McKeown said: "Today’s figures include our annual improvements to the measurement of the economy, incorporating new information that provides a better picture of activity across the UK’s service sector, alongside the usual inclusion of updated and improved data sources.

"Growth for 2025 as a whole was a little lower than previously estimated, with the profile of growth across the quarters also revised.

"However, stronger services growth in the latest quarter means the economy is now slightly larger than previously estimated."

In equity markets, Greggs surged as it unveiled plans to overhaul its manufacturing operations, with the potential loss of more than 700 jobs.

The bakery chain said that following a review of where future manufacturing activity should be located, four sites had been flagged for possible closure. It will now enter a consultation period, but confirmed 740 roles were likely to be made redundant over the next two-and-a-half years.

The announcement coincided with an update on third-quarter trading. Total sales rose 7.7% in the 13 weeks to 26 September, or by 3.4% on a like-for-like basis, which Greggs attributed to menu innovation alongside more settled weather. Coupled with "strong" cost control, Greggs added that it now expected a "modestly improved" outcome for 2026.

Oxford Nanopore shot up as RBC Capital Markets lifted its price target to 300p from 225p.

Private hospitals chain Spire Healthcare - about to be bought by a group of investment firms in a deal worth £1bn - was in focus as it posted lower first-half operating profit of £38.4m, down from £63m a year earlier.

Saga surged as the specialist in products for the over-50s said its first-half performance was ahead of expectations, with all of its core businesses growing, and that it expects to achieve its medium-term targets earlier than planned.

Among smaller stocks, Tullow Oil plunged after a court found against it in a $195.6m tax dispute with in Ghana.

Market Movers

FTSE 100 (UKX) 10,606.00 -0.29%
FTSE 250 (MCX) 24,539.99 0.68%
techMARK (TASX) 6,177.92 -0.31%

FTSE 100 - Risers

Antofagasta (ANTO) 3,766.00p 3.15%
SSE (SSE) 2,491.00p 2.22%
Reckitt Benckiser Group (RKT) 4,992.00p 2.09%
National Grid (NG.) 1,145.50p 2.00%
Games Workshop Group (GAW) 17,990.00p 1.81%
Croda International (CRDA) 3,333.00p 1.74%
Kingfisher (KGF) 334.30p 1.70%
Anglo American (AAL) 4,060.00p 1.70%
JD Sports Fashion (JD.) 81.28p 1.57%
Investec (INVP) 623.50p 1.55%

FTSE 100 - Fallers

Airtel Africa (AAF) 300.60p -3.34%
Barratt Redrow (BTRW) 332.20p -2.41%
BT Group (BT.A) 192.00p -2.04%
Hiscox Limited (DI) (HSX) 1,854.00p -1.38%
Prudential (PRU) 931.40p -1.38%
Standard Chartered (STAN) 2,298.00p -1.33%
M&G (MNG) 320.60p -1.32%
Rolls-Royce Holdings (RR.) 1,461.60p -1.32%
GSK (GSK) 1,832.00p -1.29%
Diploma (DPLM) 7,725.00p -1.28%

FTSE 250 - Risers

RHI Magnesita N.V. (DI) (RHIM) 3,105.00p 9.72%
Oxford Nanopore Technologies (ONT) 217.60p 9.13%
Greggs (GRG) 2,028.00p 8.16%
Raspberry PI Holdings (RPI) 692.50p 7.28%
Trustpilot Group (TRST) 231.00p 6.85%
Auction Technology Group (ATG) 461.80p 5.05%
Jupiter Fund Management (JUP) 173.40p 4.58%
Bridgepoint Group (Reg S) (BPT) 336.00p 4.48%
Partners Group Private Equity Limited. (EUR) (PEY) 7.00p 3.86%
Ceres Power Holdings (CWR) 407.60p 3.72%

FTSE 250 - Fallers

Close Brothers Group (CBG) 416.40p -6.59%
Vistry Group (VTY) 257.80p -3.73%
Genus (GNS) 2,142.00p -2.01%
WPP (WPP) 376.10p -1.96%
Michael Page (PAGE) 210.20p -1.78%
Hansa Investment Company Limited (DI) (HAN) 332.00p -1.78%
Entain (ENT) 417.10p -1.74%
CVS Group (CVSG) 1,219.00p -1.69%
Taylor Wimpey (TW.) 86.00p -1.42%
Bellway (BWY) 2,212.00p -1.34%

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