London open: FTSE flat; Ukraine talks remain in focus
By Michele Maatouk
Date: Tuesday 19 Aug 2025
(Sharecast News) - London stocks were steady in early trade on Tuesday amid the prospect of an end to the Ukraine conflict following talks between Donald Trump, Ukrainian president Zelensky and European leaders.
At 0855 BST, the FTSE 100 was flat at 9,156.94.
Susannah Streeter, head of money and markets at Hargreaves Lansdown, said: "While there is more optimism washing around that peace in Ukraine might be achievable, wariness remains about the outcome of what's been a war of attrition.
"More upbeat sentiment about the potential easing of geopolitical tensions, is colliding with concerns that interest rates look set to stay higher for longer in the UK. The FTSE 100 has opened flat but is still trading close to its recent highs as the British stocks remain attractive to investors.
"There's relief that talks between Trump, Zelensky and European leaders appear to have made good progress. With the US President sounding highly positive on giving security guarantees and protection to Europe, it has bolstered hopes for a longer lasting settlement. Ukraine is offering to purchase around $90 billion of American-made military equipment as part of the deal. As the re-armament of Europe continues, to counter the threat of further Russian aggression, it's likely to keep giving a tailwind to defence contractors.
"However, with Trump extracting commitments to buy more US hardware from European leaders, it's giving American contractors the edge."
Streeter added: "The threat of further barriers to trade with Moscow is still hovering over proceedings, with the next step expected to be a meeting between Zelensky and Putin."
In equity markets, defence firms BAE Systems, Babcock and Rolls-Royce were the worst performers on the FTSE 100, dented by Ukraine peace hopes. Chemring and Qinetiq also slumped on the FTSE 250.
International Workplace Group tumbled as it said full-year earnings would be at the lower end of its forecast range as the Regus owner invested more cash to grow its managed and franchise segments.
The company, which operates serviced offices, reported a rise in adjusted core earnings to $262m for the six months to June from $247m a year ago. It expects annual earnings of $525m-$565m.
On the upside, JD Sports shot to the top of the FTSE 100 as Deutsche Numis hiked its price target on the stock to 100p from 85p.
Copper mining giant BHP rallied as a better-than-expected dividend helped to offset the fact that full-year profits have fallen to a five-year low, with sluggish demand from China weighing on iron ore prices.
Fintech group Plus500 nudged higher as announced its first strategic expansion into Latin America after establishing a representative office in Colombia.
Market Movers
FTSE 100 (UKX) 9,156.94 -0.01%
FTSE 250 (MCX) 21,797.95 0.22%
techMARK (TASX) 5,313.44 -0.29%
FTSE 100 - Risers
JD Sports Fashion (JD.) 91.48p 4.19%
Marks & Spencer Group (MKS) 351.60p 1.44%
Glencore (GLEN) 292.30p 1.41%
Persimmon (PSN) 1,110.00p 1.28%
Pershing Square Holdings Ltd NPV (PSH) 4,284.00p 1.18%
Anglo American (AAL) 2,154.00p 1.08%
IMI (IMI) 2,274.00p 1.07%
Mondi (MNDI) 1,064.00p 1.04%
CRH (CDI) (CRH) 8,256.00p 0.90%
Next (NXT) 11,880.00p 0.85%
FTSE 100 - Fallers
BAE Systems (BA.) 1,751.50p -2.18%
Babcock International Group (BAB) 1,029.00p -1.72%
Fresnillo (FRES) 1,674.00p -1.30%
Rolls-Royce Holdings (RR.) 1,070.50p -1.06%
Beazley (BEZ) 784.00p -0.63%
3i Group (III) 3,986.00p -0.60%
Rentokil Initial (RTO) 359.10p -0.55%
Haleon (HLN) 358.60p -0.53%
Flutter Entertainment (DI) (FLTR) 21,730.00p -0.46%
GSK (GSK) 1,432.50p -0.45%
FTSE 250 - Risers
Caledonia Investments (CLDN) 387.00p 2.93%
Burberry Group (BRBY) 1,135.50p 1.98%
Genuit Group (GEN) 368.50p 1.80%
WH Smith (SMWH) 1,093.00p 1.77%
Empiric Student Property (ESP) 92.50p 1.76%
Morgan Advanced Materials (MGAM) 205.50p 1.73%
Primary Health Properties (PHP) 93.00p 1.58%
Bodycote (BOY) 635.00p 1.44%
Volution Group (FAN) 655.00p 1.39%
Hays (HAS) 62.15p 1.39%
FTSE 250 - Fallers
International Workplace Group (IWG) 195.40p -14.82%
QinetiQ Group (QQ.) 478.40p -2.25%
Chemring Group (CHG) 534.00p -1.66%
Bluefield Solar Income Fund Limited (BSIF) 95.00p -1.45%
Close Brothers Group (CBG) 491.80p -1.36%
Fidelity Emerging Markets Limited Ptg NPV (FEML) 843.00p -1.06%
W.A.G Payment Solutions (WPS) 88.60p -0.89%
Hochschild Mining (HOC) 295.60p -0.87%
Mitchells & Butlers (MAB) 267.00p -0.74%
BlackRock World Mining Trust (BRWM) 560.00p -0.71%
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