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British Stocks Rise; JD Sports Plunges After Guidance Cut

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UK equities traded higher on Thursday, with the FTSE 100 closing 0.13% in the green, amid renewed tensions between the US and Iran.

US President Donald Trump warned of economic consequences against any country where financial institutions, businesses, airports, or government entities are providing any sort of support to Iran. With talks on hold, Trump also said his government is planning "economic warfare and isolation on an unprecedented scale" against Tehran, making it the "most crushing economic operation ever taken against any country!"

In corporate news, JD Sports Fashion (JD.L) lowered its fiscal 2027 outlook for profit before tax and adjusting items to between 700 million pounds sterling and 800 million pounds from 750 million pounds to 850 million pounds. The sports retailer reported total sales of 5.9 billion pounds for the 26 weeks ended Aug. 1, down 0.7% year-over-year on an organic basis and 2.8% on a like-for-like basis. Shares slumped 14.19% to become the blue-chip index's worst performer in the closing session.

"JD Sports reported a weaker than expected 2Q especially in US which sees FY guidance cut of c. -4% at mid point v cons. Group 2Q LFL was -3.1% v cons -1.5% although recent brand commentary has been more mixed. By region, North America LFL -6.8%, Europe -2.7%, UK +0.8% and Asia +1.4%. Space growth remained supportive, contributing +2.1% to Group sales in 1H despite a lower store count. By category, footwear remained weak amid product cycle headwinds and a promotional market, while apparel and accessories continued to perform well across regions as expected," Deutsche Numis Research said.

In the economic corner, the UK manufacturing sector logged an improvement in the order book balance to -25% in August from -45% in July as export orders rebounded to normal for the first time in over four years. While the reading surpassed expectations for -40%, total new orders remained below their long-run average of -14%.

"Firms also expect output to fall at a much slower pace over the next three months," CBI Senior Economist Cameron Martin said. "However, it is too soon to know whether this marks the beginning of a sustained shift in conditions, particularly given ongoing cost pressures reported by manufacturers, with selling price expectations in our survey picking up again and remaining well above historical norms."

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