The FTSE 100 finished the session down 0.1% at 10,705.26, while the FTSE 250 fell 0.7% to 24,361.58 and the AIM all‑share slipped 0.3% to 793.44. Across Europe, Paris’s CAC 40 dropped 0.4% and Frankfurt’s DAX 40 slipped 0.7%, and in New York the Dow Jones Industrial Average was 0.5% lower at the London close.
Mid‑afternoon optimism in London was sparked by a flash US composite PMI that rose to 58.4 in September, the highest reading in 62 months and well above the 55.3 consensus. S&P Global said the surge reflected strong growth in both services and manufacturing, suggesting an annualised expansion of around 5% for the quarter.
That optimism was short‑lived after Iran’s President Masoud Pezeshkian delivered a defiant address to the United Nations, accusing the West of terrorism and warning that Tehran would not allow the Strait of Hormuz to be used against it. He warned that US sanctions would only stiffen Iranian resistance.
Pezeshkian’s remarks pushed Brent crude up to $102.74 a barrel in London, up from $99.39 the previous day, bolstering energy stocks. BP rose 2.8% and Shell 2.0% after JPMorgan upgraded BP to “overweight”.
The market’s losers included JD Sports Fashion, which fell 5.7% after reporting weaker first‑half sales and margins, while Autotrader slipped 2.8% following a reaffirmed “underweight” rating from JPMorgan. Conversely, Pollen Street Group surged 13% on news it is weighing strategic options, including a possible take‑private transaction, and Ashtead Technology jumped 54% after unveiling a £6.15‑per‑share bid from Ember Infrastructure Management.
The pound weakened to $1.3254, the euro fell to $1.1391, and US Treasury yields rose, with the 10‑year at 5.08% and the 30‑year at 5.38%, reflecting the mixed macro backdrop.