FTSE 100 LIVE: London ends flat as Wall Street edges into the red

The FTSE 100 ended the day down three points at 10,705.26, flitting during the day between red and green. Sentiment tomorrow will likely be shaped by the talks between the US and China, which coincide with the UN General Assembly.

The FTSE 100 clawed its way back to flat by mid-morning, shrugging off a mid-afternoon wobble to leave the blue-chip index barely changed on the day.

Wall Street was less settled. US stocks dipped on Wednesday as investors watched diplomatic efforts with Iran and China, and eyed a stretched tech rally. The Dow fell 0.2%, the S&P 500 slipped 0.1% and the Nasdaq dropped 0.3% after back-to-back record highs.

President Trump is due to greet China's Xi Jinping in Washington, though few expect major breakthroughs on trade, rare earths or AI. Oil stayed subdued as a possible US-Iran thaw hung in the balance. Brent traded below $100 a barrel, with WTI under $91.

The FTSE 100, up in the morning session, has slipped into the red, down 22 points in early afternoon trading, as caution crept back into markets.

US stock futures also dipped, with the S&P 500 and Nasdaq-100 both edging lower after the Nasdaq's back-to-back record highs on Tuesday.

Eyes are on Washington, where Trump is set to welcome Xi Jinping for his first US visit in over a decade, with trade, Iran and AI on the agenda. Silicon Valley heavyweights including Nvidia's Jensen Huang and OpenAI's Sam Altman join a dinner with both leaders on Thursday.

Oil held steady amid tentative signs of a US-Iran thaw, with Brent under $100 and WTI below $91.

JP Morgan has turned more positive on BP, upgrading the oil major to "overweight" and lifting its price target by 20% to 675p, implying around 25% upside.

The bank framed the call as a "road to redemption" for a company whose recent history it described as chequered, citing operational and strategic inconsistencies and a strained balance sheet.

Analyst Matthew Lofting argued that a combination of supportive macro conditions and internal renewal now offered a major opportunity to reduce BP's sensitivity to the oil price cycle and strengthen its fundamentals into 2028.

Repairing the balance sheet is the essential starting point, according to the bank.

The OECD has handed the UK economy a modest vote of confidence, nudging up its growth forecast for this year to 1.1%, from 0.9%, after demand held up better than expected through the spring despite pricier fuel.

The catch comes next year: the Paris-based forecaster shaved its 2027 call to 1%, reckoning higher interest rates will take the shine off activity.

Still, it is cheerier than Threadneedle Street on prices, pencilling in inflation of 3.1% this year, easing to 2.6% in 2027, well below the Bank of England's warning of a peak above 4%.

For Chancellor John Healey, eyeing his Budget, it is a familiar mix: a little more growth now, a little less later, and stubborn inflation to fret about.

The FTSE 100 started positively, with the index up 32 points to 10,740.42 in the first half of trading. The big corporate news came from JD Sports, which essentially reiterated its earlier trading statement. In short, investors were told life is tough. The shares made a muted start to proceedings. Elsewhere. Diageo has poached a new CFO from WPP.

London's blue-chip index is primed for a bright start, with futures pointing to the FTSE 100 opening around 48 points higher on Wednesday.

The cheer is being piped in from Asia, where shares are chasing a sixth straight session of gains as consumers keep gobbling up AI apps and oil slides once more.

Brent has slipped below $99 a barrel on reports Saudi Arabia has restarted its East-West Pipeline, easing one of the market's nagging worries.

The big diplomatic set-piece looms large, with Xi Jinping touching down in Washington later and hopes building of an extended trade truce, perhaps with a dash of AI cooperation thrown in.

Memory chipmakers have grabbed the baton, with Samsung leading the charge.