London stocks slip as Middle East tensions weigh on FTSE 100, Rotork surges on ABB deal
Investor caution intensifies in London trading as rising tensions between the U.S. and Iran pressure risk appetite and drag the FTSE 100 lower. The weakness is most visible in technology shares, while the midcap FTSE 250 outperforms after a takeover-driven jump in Rotork.
Highlights
- The FTSE 100 drops 0.2% to 10,492.99 by 1038 GMT as Middle East geopolitical tensions drive risk-off sentiment, with technology stocks leading declines.
- Rotork surges 66.8% on news of a $5.5 billion takeover by Swiss engineering group ABB, helping lift the FTSE 250 by 0.3%.
- Ocado plunges 18.8% to a 13-year low after failing to demonstrate U.S. partnership progress, while Frasers Group drops 5.4% after withholding fiscal 2027 guidance.
Market moves and takeover boost
As reported by Reuters, the FTSE 100 falls 0.2% to 10,492.99 points by 1038 GMT as geopolitical concerns in the Middle East unsettle investors. Iran says the Strait of Hormuz is an inviolable red line and warns it would strike infrastructure across the Gulf region if U.S. President Donald Trump follows through on his threat to attack Iranian infrastructure.Technology stocks lead the decline. Experian drops 2.3% after reporting in-line first-quarter results and maintaining its annual outlook, while Relx loses 1%.
By contrast, the FTSE 250 rises 0.3%, supported by a 66.8% surge in Rotork after Swiss engineering group ABB announces a $5.5 billion takeover of the British automation company.
Economic backdrop and company pressure points
Britain's economy records only minimal growth in May, with services expanding but other sectors shrinking, a sign that business confidence remains fragile amid the Iran war and a change of prime minister at home.Danni Hewson, head of financial analysis at AJ Bell, says the UK may have posted the fastest growth in the G7 at the start of the year, but from a low base. She adds that the UK's high debt levels leave it especially exposed to further inflation shocks that could result from continued conflict in the Middle East.
Among individual stocks, Ocado tumbles 18.8% to a 13-year low after failing to show tangible progress in talks to secure new U.S. partners to strengthen its business against rapid delivery rivals. Frasers Group also falls 5.4% after the retailer declines to provide fiscal 2027 guidance.
ABB’s agreed takeover of Rotork highlighted how overseas buyers are increasingly targeting London-listed companies amid relatively low UK valuations. Our earlier article explained that ABB offered a cash price per share to strengthen its automation business, and noted the deal as part of a wider pickup in foreign interest in UK-listed firms with global operations.
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