London, June 3, 2026, 10:09 BST
- FTSE 100 slipped 0.21%, while the FTSE 250 dropped 0.19%. Brent crude rose 2.61% to trade close to $98.50 a barrel in late moves. markets.investorschronicle.co.uk
- B&M shares climbed after posting a profit drop that wasn’t as steep as expected. Howden gained too, after it announced a £390 million agreement to buy DIY Kitchens. Reuters
- UK services activity shrank in May, piling more rate and growth pressure on investors. Reuters
London stocks edged lower Wednesday after oil prices rose again and Middle East tension returned. The FTSE 100 shed 21.94 points, or 0.21%, to 10,351.57. The FTSE 250 lost 0.19% to 23,334.29. Gains in B&M and Howden Joinery were not enough to hold the indexes up, according to LSEG delayed data. markets.investorschronicle.co.uk
Oil, tariffs and UK rate outlooks are lining up again, pushing in a tough direction for markets. Brent crude went back over $98 a barrel after news of more U.S.-Iran strikes. Patrick Munnelly at Tickmill Group said traders were “quick to price renewed escalation,” and said new U.S. tariff threats could add back a policy risk premium—extra return for unpredictable policy. sharecast.com
UK service sector data didn’t help much. The S&P Global UK services PMI dropped to 49.3 in May, down from 52.7 in April, and under the 50 line that signals contraction. It’s the first fall in output since April 2025. Tim Moore at S&P Global Market Intelligence pointed to “subdued demand”. According to Reuters, traders priced a 90% chance the Bank of England will hold rates at 3.75% on June 18. Reuters
B&M European Value Retail shares jumped as much as 17%, leading the day’s big movers. Adjusted pretax profit dropped 38% to £284 million, though that beat the £274 million analysts were looking for in an LSEG poll. CEO Tjeerd Jegen called it a “difficult year” with “execution issues” but said B&M has ways to manage higher energy costs. Reuters
B&M’s relief rally didn’t erase the hit to profits. The company reported revenue up 3.6% at £5.78 billion, but adjusted EBITDA dropped 25.9% to £459 million. Statutory pretax profit was nearly cut in half. Susannah Streeter at Wealth Club saw some signs the turnaround was “starting gaining traction.” David Hughes at Shore Capital said “the outlook remains uncertain.” sharecast.com
B&M keeps running into loyalty pricing from UK supermarket chains like Tesco and Sainsbury’s, which continue to use Clubcard and Nectar discounts to hang on to shoppers hunting for deals. B&M has to respond with lower prices and better in-stock levels, not simply by opening new locations. Reuters
Howden Joinery rose after it said it will acquire DIY Kitchens for £390 million—£292.5 million will be in cash, with £97.5 million in Howden shares. Howden picks up a direct-to-consumer online business with the purchase. CEO Andrew Livingston called DIY Kitchens a “very profitable” complementary business. sharecast.com
Currys shares ticked up as the company said Fredrik Tønnesen, currently head of its Nordics arm, will become group chief executive on Aug. 3. The Nordics division brings in about 40% of revenue, according to Reuters. Currys last month guided for an 18% gain in annual profit after underlying sales in the UK and Ireland rose 3%. Reuters
FTSE stocks took a softer tone than Tuesday, when the FTSE 100 finished 0.3% higher and the FTSE 250 added 0.6%. Both got a lift from miners and banks on optimism over Iran peace talks. Wednesday, the move looked more like a pause than any sharp selloff. Reuters
Investors may still be missing the risk of a longer run of high inflation. Bank of England’s Megan Greene warned Tuesday that chances of a rate hike rise the longer the Iran conflict drags on, pointing to a risk that higher energy prices raise wages and other costs. If oil keeps rising and tariff threats increase, the FTSE’s global firms might be more resilient than UK-focused retailers, builders and banks. But that would leave the whole UK market with less slack. Reuters
