FTSE 100 Drops as Iran Tensions Escalate; RWS, Ashtead, and Morgan Sindall in Focus

June 17, 2025 08:40 PM AEST | By Team Kalkine Media
 FTSE 100 Drops as Iran Tensions Escalate; RWS, Ashtead, and Morgan Sindall in Focus
Image source: Shutterstock

Highlights

  • ftse 100 weakens amid renewed geopolitical uncertainty

  • RWS (LON:RWS) trades on subdued sentiment despite sector developments

  • Silver extends gains, diverging from gold as industrial demand meets haven flows

RWS (LON:RWS), part of the ftse 100, operates within the business support and professional services sector, focusing on translation and intellectual property support services. The broader ftse market saw a pullback, with the benchmark index shedding points as geopolitical concerns resurfaced. The sentiment was shaped by renewed uncertainty in the Middle East following a public statement by Donald Trump, pushing investors toward commodities and safe-haven assets.

The latest market movement came as Trump clarified that no diplomatic outreach had been initiated toward Tehran, contradicting speculation of de-escalation. The absence of diplomatic engagement reignited regional instability fears, driving price increases in commodities such as crude oil and precious metals. The market tone remains fragile, particularly in light of recent military and diplomatic developments between Israel and Iran.

Amid these developments, equities in sectors sensitive to global sentiment, such as industrials and services, showed mixed performance. Ashtead Group (LON:AHT), a construction equipment rental firm, and Morgan Sindall Group (LON:MGNS), a construction and regeneration company, advanced on trading updates reflecting resilient business performance. Both companies are listed on the ftse 250, which held steady compared to broader market declines.

Meanwhile, RWS Holdings navigated subdued trading conditions, with minimal movement despite the larger swings across the index. As a company providing support services with global exposure, RWS remains tied to macroeconomic shifts and global corporate activity, both of which continue to fluctuate due to geopolitical narratives and trade alignments.

Investor focus also turned toward the commodities market, where precious metals continued to rise. Gold extended recent gains but showed signs of resistance below key technical levels reached earlier this year. In contrast, silver demonstrated stronger momentum. Daniela Sabin Hathorn at Capital.com observed that silver's mixed role—as both an industrial metal and a partial haven—was highlighted through divergent price action over the past week.

According to Hathorn, silver had initially responded to a combination of stabilising equity markets and demand for safe-haven assets. However, this upward trend briefly paused as global uncertainty restrained broader optimism. Despite this pause, structural themes, including production constraints and limited supply growth, remain influential factors in price support for silver.

Silver prices continue to gain traction, diverging from the more cautious movements seen in gold. Its sensitivity to broader economic themes, particularly manufacturing demand and resource constraints, adds a layer of complexity that differentiates it from traditional safe-haven counterparts.

While the broader ftse 100 fell in response to renewed global tension, sector-specific resilience was visible among select mid-cap and service-oriented firms. Companies tied closely to global corporate activity or infrastructure spending managed to offset wider market pressures, at least in part. Nevertheless, overall sentiment remains cautious amid ongoing uncertainty in international relations and resource markets.


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