London midday: Stocks push higher on NYT report

(Sharecast News) - London stocks had risen by midday on Wednesday, buoyed by a report of a secret Iranian outreach to end the conflict with the US and Israel. The FTSE 100 was up 0.7% at 10,556.06.

Having opened steady, the top-flight index soon made gains on the back of a New York Times report that operatives from Iran's Ministry of Intelligence have reached out indirectly to the C.I.A. with an offer to discuss terms for ending the conflict.

According to the NYT, citing officials briefed on the outreach, US officials are sceptical - at least in the short term - that either the Trump administration or Iran is really ready for an offramp.

Nevertheless, the offer, which was made through another country's spy agency, raises critical questions about whether any Iranian officials could put into place a cease-fire agreement with the Tehran government in chaos as its leaders are methodically picked off by Israeli strikes, the NYT said.

It was understood that Israeli officials, who want a weekslong campaign to inflict maximum damage on Iran's military capabilities, and perhaps cause Iran's government to collapse, have urged the US to ignore the approach. For now, the offer is not considered serious in Washington, the NYT said.

Russ Mould, investment director at AJ Bell, said: "Tuesday was dominated by investors selling assets that had already served them well, such as defence stocks and gold, as they locked in profits.

"More stability on the markets is welcome not only for sentiment but also as it might give certain investors the confidence to go hunting for bargains and drive a new wave of buying.

"What could hold people back from bargain hunting is ongoing uncertainty over energy prices and whether they will stay elevated. If they do, it implies a change in thinking for interest rate expectations and that has major implications for asset valuations."

Oil prices remained up, albeit off highs, despite US President Donald Trump's suggestion to have the US navy escort tankers through the Strait of Hormuz. Brent crude was up 1.3% at $82.42 a barrel.

Trump on Tuesday pledged that the US Navy would protect shipping using the narrow waterway "if necessary". He also posted on social media that the US government would provide risk insurance "at a very reasonable price" to all shipping firms in the region, to "ensure the FREE FLOW of ENERGY to the WORLD".

Kathleen Brooks, research director at XTB, said: "There may be some mild optimism that President Trump's plan to get oil flowing through the Strait of Hormuz could boost risk sentiment on Wednesday, although the risks remain to the downside.

"The free flow of oil is essential to avoid a damaging energy price shock in the coming weeks. However, there is concern that President Trump's plan is complex and cannot be executed as quickly as the market may like. This means that the risks remain to the upside for the oil price."

On home shores, a survey showed that activity in the services sector picked up in February for the tenth month in a row, but businesses continued to cut staff and hike prices.

The S&P Global services PMI business activity index came in at 53.9 from January's five-month high of 54.0. The headline index has now been above the 50.0 mark that separates contraction from expansion every month since May 2025.

However, staffing numbers fell for the seventh month in a row, partly due to pressure on margins from higher business expenses. The survey found that efforts to pass on increased cost burdens led to another "robust" increase in prices charged.

In equity markets, Vistry Group tumbled as the housebuilder said Greg Fitzgerald will retire as chief executive next March after 45 years in the sector and cautioned over margin pressure.

Russ Mould said: "The shocking drop in Vistry's share price can't purely be attributed to Fitzgerald's departure. He looks set to leave under something of a cloud as, alongside in line full-year results, Vistry warns of margin pressure in 2026 and an end to share buybacks once the current programme is completed as the company looks to get its debts under control."

Barratt Redrow nudged down as it said long-standing chief executive David Thomas will step down after more than a decade. Thomas, who was appointed chief executive in 2015, is retiring after 17 years with the blue chip. He will be replaced by Dean Banks, the current chief executive of Australian infrastructure services provider Ventia.

Oil giants BP and Shell gushed lower, while engineering firm Weir Group tumbled despite in-line full-year results.

Quilter fell despite reporting record net inflows and better-than-expected full-year profits, as the wealth manager announced a £100m share buyback.

Beazley was little changed as the Lloyd's of London insurer posted a fall in full-year profit amid a "softening" insurance market, ahead of its agreed takeover by Zurich Insurance.

On the upside, Chilean miner Antofagasta rallied as copper prices rose, along with Anglo American and Glencore.

Market Movers

FTSE 100 (UKX) 10,556.06 0.69% FTSE 250 (MCX) 22,871.60 0.78% techMARK (TASX) 5,989.80 0.92%

FTSE 100 - Risers

Antofagasta (ANTO) 4,075.00p 4.09% Flutter Entertainment (DI) (FLTR) 8,444.00p 3.89% Informa (INF) 801.80p 3.03% Entain (ENT) 572.20p 2.88% Metlen Energy & Metals (MTLN) 34.60p 2.82% Anglo American (AAL) 3,546.00p 2.78% Intertek Group (ITRK) 3,984.00p 2.63% InterContinental Hotels Group (IHG) 135.35p 2.46% Rolls-Royce Holdings (RR.) 1,333.00p 2.42% Croda International (CRDA) 2,935.00p 2.33%

FTSE 100 - Fallers

Weir Group (WEIR) 3,118.00p -8.05% BP (BP.) 483.15p -1.91% Shell (SHEL) 3,065.50p -1.43% DCC (CDI) (DCC) 4,772.00p -1.36% London Stock Exchange Group (LSEG) 8,406.00p -1.06% Autotrader Group (AUTO) 467.10p -1.06% Bunzl (BNZL) 2,192.00p -0.99% Rentokil Initial (RTO) 423.60p -0.73% The Sage Group (SGE) 841.40p -0.66% Admiral Group (ADM) 2,866.00p -0.62%

FTSE 250 - Risers

Ocado Group (OCDO) 205.80p 5.40% Wizz Air Holdings (WIZZ) 1,123.00p 4.76% Ceres Power Holdings (CWR) 304.20p 4.61% Abrdn (ABDN) 207.40p 4.33% PPHE Hotel Group Ltd (PPH) 1,756.00p 4.03% Morgan Advanced Materials (MGAM) 209.00p 3.72% THG (THG) 32.36p 3.68% Man Group (EMG) 271.20p 3.59% Oxford Nanopore Technologies (ONT) 118.70p 3.57% Oxford Instruments (OXIG) 2,670.00p 3.49%

FTSE 250 - Fallers

Vistry Group (VTY) 513.20p -18.71% Ithaca Energy (ITH) 236.50p -4.16% Harbour Energy (HBR) 264.80p -3.22% North Atlantic Smaller Companies Inv Trust (NAS) 350.44p -2.11% IG Group Holdings (IGG) 1,320.00p -2.00% Genuit Group (GEN) 352.50p -1.94% Avon Technologies (AVON) 1,846.00p -1.60% Breedon Group (BREE) 339.80p -1.51% Syncona Limited NPV (SYNC) 95.60p -1.44% Pinewood Technologies Group (PINE) 286.50p -1.38%