Michael Hennessey

UK and European stock markets fell as escalating Middle East conflict pushed Brent crude above $100 a barrel and unsettled investors. The FTSE 100 dropped 0.7%, while US equities also declined. The European Central Bank held rates steady but Christine Lagarde warned that higher energy prices could revive inflation and potentially require a September rate hike. Oil majors BP and Shell gained, while Segro rose after receiving a takeover proposal from Prologis; Centrica, CVS Group and Mitchells & Butlers fell on weaker results or outlook concerns. Donald Trump threatened Iran and the Houthis with military punishment over attacks on shipping, while stronger-than-expected US labor data added to market considerations.

The FTSE 100 rose 1.2% to 10,716.97 as UK consumer-price inflation fell more than expected to 2.6% in June, weakening the case for Bank of England rate hikes. Oil prices increased amid escalating US-Iran tensions, while European and US equities were mostly higher. Segro gained after Prologis improved its takeover proposal, and Greencore rose after raising profit guidance. easyJet fell sharply amid a potential EU review of airline ownership rules, while JD Wetherspoon and Reach declined on profit and revenue concerns. Gold miners were among the strongest FTSE 100 performers.

The FTSE 100 rose 0.6% to 10,585.91 as Chancellor John Healey pledged fiscal control and described it as the foundation of economic stability. Defence stocks Babcock International and BAE Systems gained, while mining shares also advanced. Mitie surged after agreeing to a £3.1 billion takeover by OCS Group, and IQE raised its growth guidance; Segro fell after rejecting a Prologis proposal, while London Stock Exchange Group declined despite announcing plans for an overnight weekday trading venue. Rising tensions involving Iran and the Houthis pushed Brent crude above $91 a barrel and added to concerns over global energy markets.

London stocks fell as gilt yields rose following Prime Minister Andy Burnham’s first speech and early Cabinet reshuffle, which saw several senior ministers depart. Markets reacted with a weaker pound and mixed European and US equity performance. Computacenter led FTSE 100 gains after an analyst upgrade, while Ryanair declined due to lower quarterly profits and concerns linked to Middle East conflict and fuel costs. Big Yellow Group reported modest revenue growth amid uncertain conditions, and Sunrise Resources advanced on a new Nevada mining project. Commodity prices were mixed, and upcoming economic data releases and corporate statements were noted.

The FTSE 100 fell 0.4% to 10,261.15 as weak UK GDP data and uncertainty surrounding the Iran conflict and Strait of Hormuz weighed on investor sentiment. European countries including France and Italy opened talks with Iran over shipping access, while no European navy was prepared to escort vessels through the strait. Brent crude rose above $101 a barrel, increasing concerns about inflation, household incomes and business investment. UK GDP was flat in January 2026, below expectations, while US fourth-quarter growth was revised down to an annualised 0.7%. Admiral gained after an RBC upgrade, but mining shares including Fresnillo and Antofagasta declined. Berkeley maintained its profit forecasts while warning that prolonged geopolitical uncertainty could bring higher inflation and interest rates.

UK and European equities fell as Iran’s new supreme leader, Mojtaba Khamenei, called for the Strait of Hormuz to remain closed, raising fears of a prolonged Middle East war and pushing Brent crude higher. US President Donald Trump said confronting Iran was more important than oil prices, while Iranian officials later indicated that ships from some countries could still pass through the strait. The FTSE 100 fell 0.5%, with HSBC among the biggest decliners, while Rentokil Initial gained after a UBS upgrade. M&G reported slightly higher-than-expected profit, TP ICAP posted stronger revenue and earnings, and Shawbrook shares fell despite improved results. On the Beach withdrew its profit guidance after weaker bookings to Mediterranean destinations.

London markets closed lower, with the FTSE 100 falling 0.6% as the Iran-related Middle East crisis increased concerns about oil prices and inflation. Brent crude rose after attacks on energy infrastructure and US warnings concerning civilian ports, prompting the International Energy Agency to release 400 million barrels from reserves. Oil majors Shell and BP gained, while Legal & General fell 6.8% after mixed results. On the FTSE 250, Balfour Beatty rose 8.9% following a 51% increase in pretax profit and a proposed 13% dividend increase.

UK equities fell as the continuing war involving Iran, the United States and Israel heightened concerns about energy supplies, inflation and the duration of the conflict. The FTSE 100 dropped 0.6%, while European and US markets also declined. Brent crude rose above $91 a barrel, prompting the International Energy Agency to announce a coordinated release of 400 million barrels from member-country reserves. Oil majors Shell and BP gained, while Legal & General fell 6.8% after earnings and solvency-generation figures missed expectations despite announcing a record £1.2 billion share buyback. Balfour Beatty rose 8.9% on stronger profits and a higher dividend, whereas Hochschild Mining declined despite substantial revenue and profit growth because its dividend increase disappointed investors.

UK equities rebounded strongly, with the FTSE 100 gaining 1.6% and the FTSE 250 rising 1.8% as a sharp fall in oil prices reduced inflation and interest-rate concerns. Markets were also supported by Donald Trump’s claim that the Iran war could end soon, although US officials indicated that military strikes would intensify. The International Energy Agency is preparing crisis talks over supply security and possible emergency stock releases as disruption around the Strait of Hormuz threatens oil markets. Mining stocks led London’s gains, while BP, Shell and defence shares declined. Company developments also drove significant moves: Pershing Square rose on plans for dual IPOs, Persimmon and Costain advanced after strong results, and Rotork fell on a weaker oil-and-gas outlook.

UK equities closed lower but recovered from steeper early losses as investors assessed the Iran conflict’s implications for inflation, oil prices and interest rates. The FTSE 100 fell 0.3%, while the FTSE 250 dropped 1.6%; Brent crude rose to about $100 a barrel after trading as high as $119.25. Markets moved from fully pricing two Bank of England rate cuts in 2026 to assigning a meaningful possibility to a hike, with analysts warning that elevated oil prices could pass rapidly into UK household energy bills. Iran’s strikes on Gulf oil-producing states and a missile intercepted in Turkish airspace remained central geopolitical concerns. Pearson gained after updating arrangements for its £350 million share buyback and reaffirming its outlook, while Clarkson rose after reporting positive 2026 trading momentum despite lower 2025 profit and revenue.

UK equities ended lower, ending the FTSE 100’s winning streak as investors assessed corporate results and escalating tensions between the United States and Iran. The FTSE 100 fell 0.6% to 10,627.04, while the FTSE 250 and AIM All-Share also declined. Rising Brent crude, driven by Middle East uncertainty, supported BP and Shell, while the pound weakened. Centrica was the biggest FTSE 100 faller after pausing share buybacks to invest in infrastructure projects including Sizewell C and issuing weaker 2026 guidance. Mondi cut its dividend amid a cyclical industry downturn, while Thruvision Group rose after winning new custodial-facility contracts. US stocks also fell, and Federal Reserve minutes indicated that some policymakers believe rate increases should remain possible if inflation stays above target.

The FTSE 100 rose 1.2% to a record 10,686.18 after UK consumer-price inflation slowed to 3.0%, strengthening expectations that the Bank of England could cut interest rates in March and potentially deliver three cuts during the year. European and US equities also advanced. Antofagasta led London’s risers, while Glencore gained after reporting improved 2025 earnings and announcing $2 billion in shareholder distributions. BAE Systems reported stronger annual results and forecast further growth amid heightened defence demand. Liberty Global agreed to buy Vodafone’s stake in VodafoneZiggo and acquire Substantial, aiming to create a major full-fibre challenger to BT’s Openreach; BT shares fell 2.5%.

The FTSE 100 rose 0.8% to a record 10,556.17 as higher UK unemployment and weaker wage growth strengthened expectations that the Bank of England could cut interest rates in March. Property stocks including Barratt Redrow, Land Securities and Persimmon gained, while Antofagasta fell 5.7% despite reporting substantial increases in 2025 profit, revenue and dividends because results were slightly below expectations. Raspberry Pi surged 36% after an AI-related social-media post, Applied Nutrition raised its revenue forecast, and boohoo Group fell 6.7% while preparing a £35 million equity raise to reduce debt and support its turnaround plan.

The FTSE 100 gained 0.3% to 10,473.69 in thin London trading, helped by NatWest’s 4.8% rise after it began a £750 million share buyback, while defence stocks climbed after Prime Minister Keir Starmer called for faster increases in defence spending. Melrose, Babcock and BAE Systems all advanced. Pinewood Technologies plunged 33% after Apax Partners withdrew from a potential £500-per-share takeover, with investors also concerned about disruption from major AI platforms. Pebble Beach Systems rose 25% after winning an initial £1.3 million, five-year contract supporting a US streaming company’s expansion into live sports.

The FTSE 100 closed 0.2% lower at 9,923.06 on the final shortened trading session of 2025 but recorded a 22% annual gain, narrowly missing another record high. The FTSE 250 rose 9% over the year and the AIM All-Share gained 6.4%. Mining, aerospace, defence and banking stocks were among the strongest performers, while WPP, Diageo, Bunzl and WH Smith suffered substantial declines. Senior announced a £40 million share buyback following the sale of its Aerostructures division, Princes Group completed its €124.3 million acquisition of Plasmon from Kraft Heinz, and MobilityOne received conditional approval to establish an Islamic digital bank in Labuan. Trading resumes on Friday with global manufacturing PMI data due.

London equities ended higher, with the FTSE 100 rising 0.8% to 9,940.71 as mining stocks led gains. Fresnillo climbed 6.8% after Citigroup raised its price target, while Antofagasta, Anglo American and Glencore also advanced. The FTSE 250 and AIM All-Share likewise gained, although US markets edged lower. Investors continued to assess expectations for US interest-rate cuts, currency movements, geopolitical turmoil and concerns about an AI bubble. Caspian Sunrise surged after Kazakhstan granted tax concessions and renewed licences for its BNG oil area, while Westminster Group and Jarvis Securities fell sharply on financing uncertainty and regulatory-related costs respectively. US housing data remained weak, and Texas service-sector conditions were broadly unchanged.

UK equities ended mixed in thin holiday-period trading, with the FTSE 100 slipping 4.15 points while the FTSE 250 rose 0.4%. International Personal Finance led mid-cap risers after agreeing to a £543 million cash takeover by BasePoint Capital, which the IPF board unanimously recommended. Everyman Media faced renewed pressure after chief executive Alex Scrimgeour departed shortly after a profit warning and finance director Will Worsdell's resignation. US stocks also fell, while stronger-than-expected pending home sales offered a positive economic signal. Oil and gold prices declined from recent levels, and investors awaited Federal Open Market Committee minutes and manufacturing data.