The FTSE 100 nudged higher on Wednesday as oil prices fell amid renewed hopes for progress in US-Iran talks. The blue-chip index gained 17 points, while the FTSE 250 rose 0.3% and the AIM All-Share added 0.1%.
Brent crude dropped to $96.61 a barrel from $100.18 at Tuesday's close, after reports emerged of a potential framework deal. However, the White House dismissed the Iranian state television report as a 'complete fabrication'.
The oil price decline hit energy stocks, with BP falling 2.7% and Shell down 2.3%. Conversely, British Airways owner IAG rose 3.1%, retailers JD Sports and Marks & Spencer gained 5.1% and 4.3% respectively, and housebuilder Barratt Redrow added 2.3% as bond yields cooled.
In European markets, the CAC 40 in Paris ended up 0.4%, while the DAX 40 in Frankfurt closed slightly lower. In New York, the Dow Jones rose 0.4%, the S&P 500 edged down 0.1%, and the Nasdaq eased 0.3%.
The pound traded at $1.3429, down from $1.3443 on Tuesday, and eased to €1.1543 from €1.1567. Gold fell to $4,439.66 an ounce from $4,504.21, as analysts noted the metal has struggled amid a stronger dollar and rising Treasury yields.
