Source: Sharecast
The FTSE 100 was down 0.2% to 7,370.83, around lows not seen since April.
Sterling was up 0.2% against the dollar at 1.2935 and 0.3% higher versus the euro at 1.1128, still underpinned by a report on Wednesday that Germany was prepared to make compromises on the Brexit deal. Bloomberg said Germany has ditched a demand that the future relationship should be set out in detail alongside the separation.
Meanwhile, trade talks between the US and Canada resumed on Wednesday after the two failed to reach an agreement last week. US President Trump described the NAFTA talks as "intense" and accused Canada of "taking advantage", while Canadian Prime Minister Justin Trudeau said in a radio interview that he would insist on certain safeguards as Trump doesn't always follow the rules.
Still, after a day of talks with US trade negotiator Robert Lightizer, Canadian foreign minister Chrystia Freeland said progress was being made.
US relations with China were also still very much in focus, with Trump expected to slap 25% tariffs on another $200bn of Chinese goods this week.
Spreadex analyst Connor Campbell said: "With the deadline for the public consultation period for Donald Trump’s latest set of tariffs on $200bn in Chinese imports coming to an end this Thursday - meaning the rattled President is likely waiting with pen in hand to sign them off - Beijing has already stated it is ready to retaliate. If any of this comes to fruition this afternoon, then the tenor of trading could change pretty quickly."
On the corporate front, Sirius Minerals tanked after revising its capital expenditure estimate up 13.5% from $3.7bn to $4.2bn, which is expected to result in its stage-two funding requirement increasing by $400-600m.
BCA Marketplace slipped even as it hailed a strong start to the year, while Genus tumbled as its full-year revenue missed forecasts.
Wood Group fell despite saying that Hess Corporation has awarded the company a three-year non-exclusive agreement for the provision of operations, maintenance and other support services in the Gulf of Mexico.
Weir Group slumped as it highlighted a recent softening in demand for original equipment and some order book delivery deferrals.
Retailer Dixons Carphone was lower as it reported a 2% revenue drop for the first quarter and a flat like-for-like performance but maintained its full-year guidance.
On the upside, utilities rallied as investors breathed a sigh of relief after Ofgem's proposed price cap came in in line with expectations, ending uncertainty for the sector.
The energy regulator said energy suppliers will not be allowed to charge a typical dual-fuel customer paying by direct debit more than £1,136 a year under the new price cap. Analysts had pencilled in a range of between £1,100 and £1,160.
Russ Mould, investment director at AJ Bell, said the findings of the report were "no worse than expected".
"There’s nothing the market hates more than a lack of clarity and now the level of the price cap is known analysts can reflect it in their earnings estimates. This should help reinforce the credibility of earnings and most importantly dividend forecasts," he said.
Centrica was the biggest riser, with SSE also on the leaderboard, with water companies United Utilities and Severn Trent also firmer.
Melrose Industries racked up strong gains after saying it found "no black holes" in the GKN business and progress since its £8bn hostile takeover was completed in April. The turnaround specialist also reported a statutory loss before tax of £303m for the half year after booking significant acquisition-related charges but only including 73 days of trading from GKN.
Bovis Homes advanced after it posted a 41% jump in first-half pre-tax profit as completions rose and the housebuilder said it was targeting a record year of profits, at the top end of its expectations.
Train and bus operator Go-Ahead Group surged as full-year results came in ahead of consensus expectations at the operating profit level.
McCarthy & Stone was on the front foot even as the retirement housebuilder downgraded its operating profit guidance for the year following a "tough" year but posted a rise in revenue.
Just Group rallied as its first-half results came in ahead of expectations on most metrics, but the company said it has deferred its interim dividend as the outcome of the lifetime mortgage review remains unknown.
In broker note action, Redburn downgraded HSBC to 'sell', while Liberum downgraded Bodycote to 'hold' and IMI to 'sell'. It also initiated coverage of Smiths at 'hold', while Vodafone was lifted to 'buy' at Citi.
Shire, RSA Insurance, Land Securities, Glencore, CRH, BHP Billiton, Antofagasta, Admiral Group, Savills, Rathbone Brothers, Polymetal, Pagegroup, Meggitt, Kaz Minerals, John Laing Infrastructure, IWG, Greggs, G4S, ConvaTec, Clarkson and Aggreko all went ex-dividend.
Market Movers
FTSE 100 (UKX) 7,370.83 -0.17%
FTSE 250 (MCX) 20,362.28 -0.13%
techMARK (TASX) 3,449.07 -0.39%
FTSE 100 - Risers
Centrica (CNA) 150.82p 5.18%
Melrose Industries (MRO) 233.98p 5.07%
Severn Trent (SVT) 1,956.50p 1.77%
United Utilities Group (UU.) 725.40p 1.77%
Barratt Developments (BDEV) 554.65p 1.73%
Vodafone Group (VOD) 165.34p 1.50%
SSE (SSE) 1,281.00p 1.34%
Evraz (EVR) 495.60p 1.20%
Berkeley Group Holdings (The) (BKG) 3,579.00p 1.16%
Royal Mail (RMG) 472.20p 1.11%
FTSE 100 - Fallers
BHP Billiton (BLT) 1,560.00p -3.61%
Just Eat (JE.) 715.00p -3.22%
Admiral Group (ADM) 2,038.00p -2.72%
Paddy Power Betfair (PPB) 6,917.50p -1.60%
Ocado Group (OCDO) 1,025.00p -1.58%
Shire Plc (SHP) 4,328.00p -1.58%
Glencore (GLEN) 307.55p -1.46%
RSA Insurance Group (RSA) 618.00p -1.37%
Land Securities Group (LAND) 896.77p -1.29%
Micro Focus International (MCRO) 1,285.50p -1.23%
FTSE 250 - Risers
Go-Ahead Group (GOG) 1,750.00p 7.03%
Euromoney Institutional Investor (ERM) 1,356.00p 4.95%
Bovis Homes Group (BVS) 1,170.87p 3.48%
FirstGroup (FGP) 92.65p 3.12%
McCarthy & Stone (MCS) 114.90p 2.68%
IP Group (IPO) 130.20p 2.52%
On The Beach Group (OTB) 496.00p 2.48%
Lancashire Holdings Limited (LRE) 607.50p 2.27%
Computacenter (CCC) 1,338.00p 2.14%
Equiniti Group (EQN) 250.11p 2.09%
FTSE 250 - Fallers
Sirius Minerals (SXX) 30.24p -7.40%
Weir Group (WEIR) 1,684.00p -5.71%
Dechra Pharmaceuticals (DPH) 2,258.00p -4.81%
Genus (GNS) 2,595.52p -4.65%
Bodycote (BOY) 898.00p -4.62%
IMI (IMI) 1,153.00p -4.24%
Hunting (HTG) 772.50p -3.56%
Pagegroup (PAGE) 580.50p -3.17%
Greggs (GRG) 1,023.70p -2.88%
Hikma Pharmaceuticals (HIK) 1,947.50p -2.60%