UK equities moved higher on Wednesday after earlier weakness this week triggered by the outbreak of war in the Middle East over the weekend. Broader European markets also advanced as investors bet that geopolitical tensions could begin to ease.
According to officials familiar with the situation, Iranian representatives have approached the CIA to explore potential terms to end the conflict, in what The New York Times described as an attempt to open a negotiating channel. While the development suggests a possible diplomatic shift, details about the proposed discussions remain unclear.
As of 12:23 GMT, the blue-chip FTSE 100 index was up 0.6%, while the British pound rose 0.1% against the U.S. dollar to 1.3373. Elsewhere in Europe, Germany’s DAX gained 1.4% and France’s CAC 40 climbed 0.8%.
UK corporate round-up
Shares of John Wood Group PLC (LSE:WG.) slipped 0.9% after the Financial Conduct Authority completed its investigation into historical financial reporting issues at the company.
Vistry Group PLC (LSE:VTY) dropped more than 17% after the housebuilder warned that profit margins will come under pressure in 2026 as it introduces pricing incentives to stimulate Open Market sales, even though its full-year 2025 adjusted profit before tax broadly met guidance. The company reported adjusted profit before tax of £268.8 million for 2025, compared with £263.5 million in 2024. Revenue fell 4% to £4.15 billion from £4.33 billion a year earlier. Total housing completions declined 9% to 15,658 units from 17,225, partly offset by a 3% rise in the average selling price.
Shares in Weir Group PLC (LSE:WEIR) fell more than 8% after the mining equipment manufacturer reported full-year results that were largely in line with expectations. The stock had already climbed around 38% over the past year. The Glasgow-based group reported adjusted operating profit of £518 million for 2025, matching analyst consensus forecasts. Revenue reached £2.57 billion, representing 6% growth in constant currency. Adjusted earnings per share totaled 123.8p, also in line with projections. For 2026, Weir expects mid-single-digit organic revenue growth and a 50-basis-point improvement in margins.
Shares of SIG (LSE:SHI) declined even though the building materials distributor reported a 28% increase in full-year underlying operating profit, as difficult weather conditions weighed on trading at the start of 2026. SIG posted underlying operating profit of £32.1 million for the year ended Dec. 31, 2025, up from £25.1 million a year earlier and within its guidance range of £30-35 million. Revenue slipped 1% to £2.59 billion, while like-for-like sales were flat year-on-year. The company recorded a statutory pre-tax loss of £61.7 million, compared with £44.8 million in 2024, after £29.7 million in non-cash impairment charges and £9 million in restructuring costs.
Beazley PLC (LSE:BEZ) reported profit before tax of $1,146.5 million for 2025, down 19% from $1,423.5 million the previous year, as the specialty insurer navigated softer pricing conditions in the insurance market. The company nonetheless delivered its third consecutive year with profit above $1 billion. Insurance written premiums totaled $6,100.7 million, missing analyst forecasts by 2.1% and declining 1% from $6,164.1 million in 2024.
Quilter PLC (LSE:QLT) announced record net inflows and a 6% increase in adjusted profit before tax to £207 million for 2025. The wealth manager also unveiled a £100 million share buyback programme and a new distribution policy. Total assets under management and administration rose 18% to £141.2 billion during the year, supported by £8.7 billion of net inflows and positive market performance. Core net inflows reached £9.1 billion, equivalent to 8% of opening assets, up from 5% in 2024.
Metro Bank Plc (LSE:MTRO) reported underlying profit before tax of £98 million for the year ended Dec. 31, 2025, marking the highest level in its 15-year history and exceeding its cost-reduction targets. Net interest income increased 22% to £460 million, driving a 16% rise in underlying revenue to £585 million. Net interest margin reached 2.98% for the year, up 107 basis points year-on-year, with an exit margin of 3.17% in line with guidance. Underlying operating costs fell 7% year-on-year to £473 million, surpassing the bank’s targeted reduction of 4–5%.
Meanwhile, the UK services sector recorded its tenth consecutive month of expansion in February, although the pace of new orders softened and job cuts continued, according to data from S&P Global. The S&P Global UK Services PMI Business Activity Index registered 53.9 in February, slightly below January’s five-month high of 54.0. A reading above 50 signals expansion. Service providers reported higher activity levels supported by gradually improving demand, with anecdotal evidence suggesting that improving client confidence this year helped release previously delayed demand.
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