June 10 (Reuters) - 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 tanked 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 global 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% fall, as shares of Hong Kong exposed HSBC and Standard Chartered lost 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 the U.S. and Iran traded fresh fire, 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 President Donald Trump said is on the horizon.
• Inflation concerns, due to elevated 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. U.S. inflation data later in the day could also offer insights on the Federal Reserve's monetary policy path.
• Among others, Pennon Group slipped 1.3% after its new CEO warned operational discipline must improve, even as the water utility returned to annual profit.
• EnQuest shot up 18% after the North Sea-focused oil producer agreed to buy interests in four offshore contracts in Malaysia for up to $833 million from state-run Petronas, as it expands its South East Asian presence.
(Reporting by Johann M Cherian in Bengaluru; Editing by Nivedita Bhattacharjee)
