FX.co ★ FTSE 100 Trades Slightly Lower

The FTSE 100 traded flat to lower on Wednesday, pressured by a mix of downbeat corporate updates and a decline in gold prices that hit precious metals producers. AB Foods slipped about 2.5% after warning that its sugar division had deteriorated further due to the conflict in the Middle East, even as plans to spin off its Primark fashion retail business continued to advance. Among miners, Fresnillo fell 2.1% and Endeavour lost 0.8% in response to weaker gold prices.

Providing some support to the index, defence names were firmer: aerospace group BAE Systems gained 0.8%, submarine contractor Babcock rose more than 2%, and engine-maker Rolls-Royce added over 1%. Pharma majors AstraZeneca and GSK also edged higher, up roughly 0.3–0.7%.

On the macroeconomic side, data from Nationwide showed UK house prices were unchanged on a monthly basis in June, undershooting expectations for growth. Year-on-year, however, prices were up 2.2%, reflecting a more optimistic market tone as prospects for Bank of England interest rate cuts improved and previous tightening began to ease.