FTSE 100 slips on Iran tensions; Rotork deal lifts FTSE 250

By 1038 GMT on Thursday, the FTSE 100 was down 0.2% at 10,492.99. The domestically focused FTSE 250 rose 0.3%.

Market caution followed a rise in tensions between the United States and Iran. US President Donald Trump threatened to target Iranian infrastructure; Iran described the Strait of Hormuz as an inviolable red line and warned it would strike infrastructure across the Gulf if hit. Investors reduced exposure to riskier assets, putting pressure on European markets.

Technology stocks were among the largest drags on the FTSE 100. Experian fell 2.3% after reporting first-quarter results that met expectations and it maintained its annual outlook. RELX declined about 1%, adding to losses in the sector.

Ocado plunged 18.8% to a 13-year low after the online grocery and technology group failed to show progress in talks to secure new US partners. Frasers Group fell 5.4% after the retailer declined to provide a fiscal 2027 outlook.

Rotork surged 66.8% after Swiss engineering group ABB announced it would acquire the British automation company in a deal valued at about $5.5 billion. The takeover boosted midcap stocks and helped lift the FTSE 250.

Economic data showed Britain’s economy recorded only minimal growth in May, with expansion in the services sector while other parts of the economy contracted.

Trading was selective, with geopolitical developments, sector weakness and takeover activity driving uneven moves across indices.