The FTSE 100 surrendered its earlier gains to close in negative territory on Wednesday, down 30.80 points or 0.29% to sit at 10,638.60 GBP. While an upward revision to second-quarter UK GDP and strong performance in utilities and retail provided early momentum, late-session selling across technology, defensive growth, and energy names ultimately pushed the benchmark into the red. Broad-based buying had initially supported defensive and domestic cyclical sectors. Utilities led early top-flight upside, with SSE gaining over 3%, while National Grid, Severn Trent, and United Utilities advanced between 2.4% and 3%.
Strong momentum also extended into retail, home improvement, and industrial names, as Kingfisher, Marks & Spencer, Reckitt Benckiser, and JD Sports Fashion climbed over 3%. Further gains of 1% to 2% were registered by Aberdeen Group, British Land, BAE Systems, Land Securities, Associated British Foods, ICG, Intercontinental Hotels Group, Babcock International, Diageo, Rio Tinto, Metlen Energy & Metals, Spirax Group, Compass Group, and Centrica.However, persistent technology weakness and oil market volatility weighed on the broader market into the close. Software company The Sage Group drifted lower by 2.3%, while Experian and RELX shed 1.0% and 0.8%, respectively.
Energy heavyweights Ithaca Energy, BP, and Shell drifted down between 0.8% and 1.2% as traders balanced higher crude prices—with Brent crude gaining 1.8% to $97.90 a barrel on stalled U.S.-Iran negotiations—against broader portfolio rebalancing away from energy majors.On the domestic economic front, revised figures from the Office for National Statistics (ONS) confirmed stronger economic expansion in the second quarter. UK GDP grew 0.5% quarter-on-quarter in Q2 2026, revised up from the preliminary estimate of 0.4%, following a 0.6% expansion in Q1. Growth was driven by a 0.6% expansion in services and a 0.8% rise in construction, offsetting a 0.1% contraction in production. Expenditure data showed real household consumption rising 0.3%, while government spending fell 0.5%. Additionally, a separate ONS release showed the UK current account deficit narrowed by £1.2 billion to £19.9 billion (2.5% of GDP) in Q2.
Finish Line: The FTSE 100’s attempt to end the quarter on a high note faded as late-day selling in technology and energy majors dragged the index negative despite solid GDP figures. While upgraded growth data and gains across retail and utilities offered an initial buffer, broader macro caution and energy market volatility left the benchmark unable to hold onto its intraday advance.
TECHNICAL & TRADE VIEW
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