-- London's FTSE 100 ended 0.25% higher on Tuesday amid mixed corporate updates and news that the US and Iran could resume talks despite a blockade on Iranian ports.
Negotiators from Washington and Tehran could return to Islamabad this week for another round of peace talks, Reuters reported, citing unnamed sources who were privy to a proposal that had been shared with both sides to resend their delegations. A senior Iranian source added that no firm date has been set.
On the economic side, retail sales in the UK grew 3.1% year over year on a like-for-like basis in March, against the 0.7% rise in the previous month, according to data from the British Retail Consortium. Analysts were expecting a 0.9% increase for the month. The strongest jump since April 2025 was mainly attributed to higher food sales amid an early Easter, while sales of travel-related goods were impacted by the conflict in the Middle East.
"Retailers hope that the Middle East ceasefire will bring lasting stability, but the outlook remains uncertain. Damage to supply chains has already been done, and rising costs - from shipping and fertiliser to insurance and commodities - are piling yet more pressure onto already stretched retailers. Government must act decisively and boldly now to curb inflation by delaying domestic policies that would push prices even higher for shoppers," said BRC Chief Executive Helen Dickinson.
On the corporate front, Intertek Group (ITRK.L) surged 12.83% to the top of the blue-chip index after launching a strategic review to evaluate the potential separation of its energy infrastructure and testing businesses. The assurance, testing, and certification company also maintained its outlook for like-for-like revenue to increase at constant currency.
"In terms of management, this appears to mark ITRK's CEO's swansong move," RBC Capital Markets said. "With merger talks with BVI having been abandoned in mid-2024, this could yet mark a value creative exit for ITRK's shareholders and a sale has always been the key risk to being excessively bearish. However, buyers are likely to tread carefully given the complex geopolitical backdrop, impending disruption to energy/[Middle East]-related [testing, inspection, and certification] activities and any buyers are unlikely to rush any processes."
On the contrary, Imperial Brands (IMB.L), down 4.84%, was the FTSE 100's worst performer after flagging "modest" market share losses across its top five markets while keeping its fiscal 2026 outlook for revenue, operating profit, and EPS.
"Imperial expects low single digit constant currency revenue growth for tobacco and NGP (Next Generation Products) in 1H, in line with Visible Alpha consensus of 1.5%, and 2H weighted operating profit growth as previously flagged. Full-year guidance of 'at least high-single digit earnings per share growth and at least GBP2.2 billion of free cash flow' has been reiterated. That said, market share looks to have declined in 1H," RBC said in another note.