- London Stock Exchange Group
- 31 March 2026 12:11:16
Source: Sharecast
The FTSE 100 was up 0.68% at midday to 10,196.89, while the FTSE 250 outperformed with a 1.14% gain to 21,192.78.
In currency markets, sterling edged up 0.14% on the dollar to $1.3205, but slipped 0.16% versus the euro to change hands at €1.1521.
Energy markets remained firm, with Brent crude futures last up 2.27% on ICE at $115.34 a barrel, and the NYMEX quote for West Texas Intermediate rising 2% to $104.94.
“Global markets are breathing a sigh of relief this morning as the ‘war premium’ begins to erode, triggered by reports that president Trump is prioritising a diplomatic off-ramp over continued military escalation,” said Joshua Mahony, chief market analyst at Scope Markets.
“Reports that Trump is willing to conclude the campaign against Iran despite their control of the Straits of Hormuz does signal a willingness to deescalate to avoid a ‘forever war’ in the Middle East.”
Sentiment was supported by a report in the Wall Street Journal that Trump had told aides he was prepared to end military operations against Iran even if the key shipping route remained largely closed.
According to the report, officials believe efforts to forcibly reopen the chokepoint could extend the conflict beyond the administration’s preferred four- to six-week timeframe.
Washington was instead said to favour achieving its core objectives before shifting to diplomatic pressure, with allies potentially tasked with restoring maritime access if needed.
“The FTSE 100 consolidated Monday’s gains to stand firmly above the 10,000 mark as investors continue to weigh competing narratives over the Iran conflict,” noted Russ Mould, investment director at AJ Bell.
“Wall Street saw selling yesterday and Asian shares were weaker on Tuesday but European markets responded positively to suggestions president Trump is mulling an exit from the war,” he added, noting that “much remains uncertain and until there is clarity on a route towards bringing the fighting and disruption to an end, markets are likely to remain nervy.”
UK economy expands slightly as expected at end of 2025
In economic news, data from the Office for National Statistics confirmed the UK economy expanded by 0.1% in the final quarter of 2025, in line with expectations and unchanged from the prior quarter.
Production rose 1.2%, but construction output fell 2.0% and the services sector showed no growth.
Annual GDP growth was revised up slightly to 1.4% from 1.3%, while the household saving ratio climbed to 9.9% from 9.1%, remaining elevated by historical standards.
Mahony said inflation trends elsewhere were already flashing warning signs, with “the rapid rise in eurozone inflation pointing towards a second wave of price pressures that are only just beginning to take hold,” adding that “energy [has switched] from being a key driver of disinflation, to becoming the key driver of above-target inflation.”
The broader outlook remained subdued, with the UK economy continuing to struggle for momentum despite easing inflation.
Markets had shifted expectations for monetary policy following the surge in energy prices linked to the Middle East conflict, now pricing in three interest rate rises this year rather than earlier forecasts for cuts.
The OECD last week downgraded its UK growth forecast to 0.7% while projecting inflation to rise to 4% from its current 3%.
In housing, data from Nationwide Building Society showed house prices rose 0.9% in March, following a 0.3% increase in February, lifting the average price to £277,186.
Annual growth stood at 2.2%.
While the figures suggested a near-term rebound after a weak end to 2025, rising borrowing costs and uncertainty over interest rates are expected to weigh on demand.
Retail price pressures meanwhile remained relatively contained, with the British Retail Consortium reporting shop price inflation edged up to 1.2% in March from 1.1%, below expectations.
Food inflation stood at 3.4%, while non-food prices rose marginally.]
However, industry figures warned that higher energy costs and supply chain disruptions linked to the Middle East conflict could drive inflation higher in coming months.
Technology, banking stocks among the gainers
In equity markets, London Stock Exchange Group, Rightmove, Pearson and Experian all advanced, tracking gains in US technology stocks.
Banking names Lloyds Banking Group and Close Brothers Group also moved higher as investors responded to the Financial Conduct Authority’s final ruling on motor finance mis-selling compensation, which reduced the number of eligible agreements but increased the average payout, with total redress estimated at £7.5bn.
Mould said the outcome “suggests this will be a mild shunt for the business rather than anything more serious,” adding that “the average payout under the scheme is higher than had previously been guided, but Lloyds has already made significant provisions and its scale means it should be well positioned to absorb any incremental extra costs.
“Shares in Close Brothers, Lloyds’ much smaller counterpart, have also risen in relief,” he added, though warning that “there remains a risk that legal action from some complainants could drag the issue out.”
Unilever gained after confirming advanced talks to sell most of its food business to US-based McCormick & Company.
Mould said “the market could be about to make its own version of Marie Rose sauce” as the combination moves closer, adding that “having slimmed down, Unilever will want to show it is fighting fit for the future.”
Ashmore Group rallied on news that Japan Post Insurance planned to invest $1bn into its emerging market funds.
Raspberry Pi surged on stronger-than-expected annual results, and AG Barr rose after reporting a 12.5% increase in adjusted full-year pre-tax profit.
“There was some real fizz behind Irn Bru maker AG Barr’s latest results,” Mould said, noting that “what really impressed was the improved profitability, with margins expanding significantly,” while “management signalled real confidence in the outlook, despite the uncertain consumer backdrop.”
Hilton Food Group and Pets at Home Group also traded higher following updates.
Mould added that “Pets at Home shares had some renewed pep as the company welcomed the findings of a CMA probe into the veterinary sector and, after a difficult period, revealed reassuringly solid results.”
On the downside, Future slumped after warning that second-half organic revenue is expected to decline by a low single-digit percentage year-on-year.
Reporting by Josh White for Sharecast.com.
Market Movers
FTSE 100 (UKX) 10,174.87 0.46%
FTSE 250 (MCX) 21,177.85 1.07%
techMARK (TASX) 5,638.88 0.81%
FTSE 100 - Risers
BAE Systems (BA.) 2,187.00p 2.58%
JD Sports Fashion (JD.) 69.78p 2.47%
BT Group (BT.A) 213.60p 2.45%
Associated British Foods (ABF) 1,895.50p 2.41%
Antofagasta (ANTO) 3,235.00p 2.34%
Kingfisher (KGF) 284.00p 2.16%
Barratt Redrow (BTRW) 262.50p 2.02%
3i Group (III) 2,381.00p 2.01%
Fresnillo (FRES) 3,242.00p 1.95%
Vodafone Group (VOD) 114.85p 1.87%
FTSE 100 - Fallers
Smurfit Westrock (DI) (SWR) 2,932.00p -1.31%
IMI (IMI) 2,564.00p -1.16%
Airtel Africa (AAF) 345.20p -1.09%
Metlen Energy & Metals (MTLN) 31.83p -0.78%
CRH (CDI) (CRH) 7,754.00p -0.57%
Informa (INF) 743.00p -0.51%
Smith & Nephew (SN.) 1,194.50p -0.50%
Intertek Group (ITRK) 3,632.00p -0.44%
Coca-Cola Europacific Partners (DI) (CCEP) 6,950.00p -0.43%
Croda International (CRDA) 2,858.00p -0.35%
FTSE 250 - Risers
Raspberry PI Holdings (RPI) 389.10p 35.08%
Barr (A.G.) (BAG) 663.00p 7.94%
Ashmore Group (ASHM) 208.60p 5.20%
Twentyfour Income Fund Limited Ord Red (TFIF) 109.20p 4.40%
Hilton Food Group (HFG) 513.00p 4.37%
GB Group (GBG) 201.50p 4.30%
Pets at Home Group (PETS) 184.60p 3.87%
Oakley Capital Investments Limited (DI) (OCI) 462.00p 3.85%
The Schiehallion Fund Limited NPV (MNTN) 1.78p 3.64%
North Atlantic Smaller Companies Inv Trust (NAS) 342.00p 3.64%
FTSE 250 - Fallers
Wetherspoon (J.D.) (JDW) 561.50p -2.60%
Wizz Air Holdings (WIZZ) 845.00p -2.31%
Pacific Horizon Inv Trust (PHI) 845.00p -1.97%
Templeton Emerging Markets Inv Trust (TEM) 243.50p -1.82%
Aston Martin Lagonda Global Holdings (AML) 36.66p -1.72%
Kier Group (KIE) 190.60p -1.65%
Carnival (CCL) 1,829.50p -1.32%
JPMorgan Japanese Inv Trust (JFJ) 691.00p -1.29%
Schroder Oriental Income Fund Ltd. (SOI) 352.00p -1.12%
Ocado Group (OCDO) 179.95p -1.10%