FTSE indexes hover near ​three-week lows

The blue-chip FTSE 100 index and the midcap FTSE 250 inched up 0.2% each

UK’s main FTSE indexes hovered near ​three-week lows on Wednesday as investors eyed a fragile ceasefire in the ‌Middle East, while mulling the outlook for companies following a grim report from travel retailer WH Smith.

The blue-chip FTSE 100 index and the midcap FTSE 250 inched up 0.2% each by ​0752 GMT.

WH Smith dipped 16.4% to its lowest since late 2010 after ​cutting its annual profit forecast for the second time in two months ⁠on and launched an equity raise to bolster its finances as the Iran ​war disrupts international travel and hurts passenger spending. The stock was the top decliner ​on the mid-cap index.

Banks were among top sectoral decliners with a 1% drop, as shares of Hong Kong exposed HSBC and Standard Chartered shed 1.9% and 0.8%, respectively. The lenders have been ​under pressure since Beijing unveiled tighter capital controls to limit cross border investments and ​brokerage J.P. Morgan said the impact could be greater than previously anticipated.

Middle East tensions were high as Iran and U.S. traded new strikes, although crude prices stayed steady, offering some relief to investors as they looked for details on the deal to open the Strait of Hormuz that U.S. president said is on the horizon.

Inflation concerns, due to ​higher crude prices, have ​had investors price ⁠in a 25 basis point interest rate hike by the Bank of England by September, according to LSEG-compiled data.

Among others, Pennon Group slid 1.3% after its new CEO warned operational discipline must improve, even as the water utility returned to annual profit.