Investing.com — British stocks extended losses on Tuesday, retreating from last week’s record high as the war in the Middle East shifted market sentiment, although they performed better than their European peers, with investors also reacting to the UK Spring Budget.
The blue-chip index fell 2.8% to 10,489.70 and the dropped 0.6% against the dollar to 1.3325. The index in Germany and the CAC 40 in France both fell around 3.5%.
London-listed mining stocks declined due to the ongoing Middle East conflict, with down 3.8%, off 1.5%, falling 5.8%, while precious metals miners dropped 5.4% and slid 4.7%.
United States President Donald Trump said overnight that the U.S. will do “whatever it takes” to achieve its military objectives, indicating that operations could continue for several weeks.
According to Jefferies, finding an exit strategy would not be straightforward for the U.S. The firm added that a leadership change while the current regime remains in power would likely be insufficient for either the U.S. or Israel, and that Trump would seek more concrete results in dismantling Iran’s nuclear capabilities.
“At this stage, we do not see Iran agreeing to US terms and willingly agree to give up its nuclear ambitions. Unfortunately and sadly from a human perspective, both side may see more pain before we can reach a stage where an agreement is possible,” Jefferies added.
UK round up
Morgan Stanley has flagged as having the highest Middle East exposure among European carriers, with 8% of its scheduled departing capacity in 2025 tied to the region. The bank said Wizz Air faces the greatest vulnerability to fuel-driven earnings risk if oil prices rise. Lufthansa ranks second in Middle East capacity exposure among surveyed carriers, based on OAG data. Wizz shares fell more than 5% on Tuesday.
Morgan Stanley said Wizz Air and face the greatest risk of earnings downgrades from higher fuel prices, according to the bank’s latest airlines and airport tracker.
Oil prices have climbed to $78 per barrel from an earlier assumption of $65, which could add approximately 0.2 percentage points to the Consumer Price Index this year if sustained, according to J.P. Morgan’s latest analysis. The increase would affect liquid fuels used for transport and is expected to show up in inflation within one to two months. A surge in energy prices is expected to push UK inflation higher while weakening economic growth, creating a challenging situation for the Bank of England as it considers further interest rate cuts, according to J.P. Morgan.
Trump interview: U.S. President Donald Trump said the relationship with Britain has deteriorated after Prime Minister Keir Starmer initially withheld military backing for strikes against Iran. “It’s very sad to see that the relationship is obviously not what it was,” Trump said in an interview with British tabloid The Sun. “This was the most solid relationship of all.”
Starmer said late Sunday he would permit the U.S. to use British military bases for defensive strikes, after they were not used in the initial action against Iran. Trump said the United States did not need Britain’s help to conduct military operations in the Middle East but argued the U.K. should have offered support. “It’s not going to matter, but (Starmer) should have helped… he should have,” he said.
Reach Plc (LON:RCH) shares fell more than 10% after the UK and Ireland’s largest commercial news publisher took a £222.8 million non-cash impairment charge. The impairment, reflecting lower digital revenue expectations and a reduced long-term growth rate assumption, drove a statutory operating loss of £160.1 million. Adjusted operating profit rose 2.4% to £104.7 million for the year ended 31 December 2025, ahead of market expectations.
Shares of Intertek Group (LON:ITRK) fell more than 12% after the British testing and certification company missed organic revenue growth forecasts and reported weaker-than-expected free cash flow. Adjusted diluted EPS rose 5.4% to 253.5p, ahead of the 249.6p consensus estimate, with adjusted EBITA of £620 million coming in 2% above the £610 million consensus. The adjusted operating margin expanded 90 basis points to 18.1%, beating expectations of 17.8%, driven by portfolio mix, pricing, operating leverage, cost control and productivity gains.
Shares in fell more than 8% after the British automotive distributor reported full-year results in line with forecasts. Pretax profit held at £443 million for the year ended December 2025, matching company-compiled consensus, while earnings per share rose 13% on a constant currency basis to 80.8 pence, coming in 2% ahead of the 79.1 pence consensus estimate. The full-year dividend rose 13% to 32.3 pence. The company announced a new £175 million buyback.
Aberdeen Group Plc (LON:ABDN) shares fell over 7% after the British wealth manager pushed back its £1 billion net inflow target by a year to 2027. The stock dropped to around 207p, erasing much of its recent recovery from 12-month lows.
confirmed that it received a preliminary, non-binding all-cash offer from a consortium comprising Tinicum Incorporated and funds managed by Blackstone to acquire the entire issued and to be issued share capital of the company.
Greggs PLC (LON:GRG) reported full-year profit before tax of £171.9 million for the 52 weeks ended December 27, 2025, down 9.4% from £189.8 million in the prior year. The figure matched analyst expectations of £171.6 million. Total sales rose 6.8% year-over-year to £2,151 million, driven by new shop openings. Like-for-like sales in company-managed shops increased 2.4%, compared to 5.5% growth in 2024. The UK bakery chain faced challenging market conditions and an unseasonably hot summer during the period.
Fresnillo reported adjusted revenue rose 27.6% year-over-year to $4.65 billion for 2025, while total revenue increased 30.5% to $4.56 billion. EBITDA climbed 80.7% to $2.80 billion, and gross profit more than doubled to $2.66 billion. The miner benefited from higher precious metals prices and improved cost discipline.
Keller Group PLC (LON:KLR) reported full-year 2025 revenue of £3.09 billion and adjusted earnings per share of 211.3 pence. The world’s largest geotechnical specialist contractor posted revenue growth of 5.9% on a constant currency basis, with adjusted operating profit rising 6.5% to £218.2 million. The company announced a new £100 million share buyback programme.
International Workplace Group Plc (LON:IWG) reported adjusted EBITDA rising 6% to $531 million for full-year 2025, with system-wide revenue reaching $4.5 billion, up 4% year-over-year. The company increased its 2026 share buyback program by $50 million to $100 million.
Allfunds Group Ltd (LON:0AAL) reported full-year 2025 results with assets under administration reaching €1.76 trillion and net revenue of €639.9 million, both approximately 1% ahead of consensus estimates.
Morgan Advanced Materials reported sales of £1,030 million for 2025, compared to consensus estimates of £1,015 million. Organic growth declined 3.3%, better than the consensus forecast of a 4.3% decline. Earnings before interest, tax and amortization came in 7% below forecasts. The company said its 2026 outlook aligns with current market expectations.
Johnson Service Group PLC (LSE:JSG) reported full-year 2025 adjusted EBITA of £72.5 million on Tuesday, aligned with analyst expectations of £72.1 million.
