FTSE 100 slips as Rio Tinto earnings miss; U.S.–Iran tensions drag

FTSE 100 Retreats from Record Highs

Feb 19 (Reuters) - London's FTSE 100 dipped from record highs on Thursday, weighed down by Rio Tinto after the global miner missed expectations for annual earnings, while simmering U.S. and Iran tensions kept investors cautious.

The blue-chip index was down 0.7% at 1101 GMT, after closing at a record high for two straight sessions. The domestically focused mid-cap FTSE 250 was down 0.5%.

Rio Tinto Earnings Miss and Share Reaction

Rio Tinto fell 4.4% after the miner reported flat annual earnings that missed expectations as its mainstay iron ore business suffered from lower prices, which were offset by a strong performance from its copper division.

Middle East Tensions Weigh on Sentiment

Investors globally were unnerved as Washington and Tehran ramped up military activity across the oil‑rich Middle East, even as talks on Tehran's nuclear programme in Geneva showed signs of progress.

Recent Supports for UK Equities

In recent days, UK stocks have found support from upbeat corporate earnings, expectations of monetary policy easing as well as inflows from investors looking to diversify away from U.S. stocks that have been pressured by AI-disruption concerns. 

LSEG Rises on Elliott Pressure

Among other movers, London Stock Exchange Group rose 0.7% after reports that activist investor Elliott Investment Management is pressing the exchange operator to conduct a full review of its portfolio and launch a 5 billion pound ($6.76 billion) buyback. 

Centrica Slides on 2026 Outlook and Buyback Pause

British Gas owner Centrica fell 5.3% to the bottom of the blue-chip index after the company warned that 2026 profit at its energy trading arm would miss forecasts and paused its share buyback programme after reporting a 39% drop in annual profit. 

(Reporting by Tharuniyaa Lakshmi in Bengaluru; Editing by Mrigank Dhaniwala)