The FTSE 100 has slipped to 10,569.89, down 38.99 points or 0.37% by 11:20 GMT on Thursday, as early optimism from Wednesday’s ceasefire rally gave way to a more sober read of events in the Middle East.
Brent crude climbed back to near $97.40 a barrel overnight – recovering sharply from the lows that followed Tuesday’s ceasefire announcement – dragging sentiment lower across most of Europe.
Shell and BP, which had been the index’s biggest losers on Wednesday, recovered some ground as crude prices rebounded. But the energy bounce wasn’t enough to offset broader caution pulling the rest of the index down.
Germany’s DAX fell 0.4% and France’s CAC lost 0.5%. London, despite its own losses, held up slightly better than its continental peers – a quirk of its heavy energy weighting that cuts both ways depending on where oil is heading.
Iran’s parliamentary speaker reportedly said three points of the ceasefire deal had already been violated. Both the UAE and Kuwait disclosed their air defences had been intercepting Iranian drones. Trump, meanwhile, posted overnight that US military forces would remain stationed in the region until a “real agreement” is reached – not exactly the language of a settled peace.
Asian markets had already priced in the uncertainty before London opened. The Nikkei fell 0.7%, with Hong Kong and Shanghai each losing similar ground.
Adding to the macro complexity, minutes from the Federal Reserve’s March meeting – published overnight – showed officials flagging the need to stay nimble as they assess the conflict’s economic fallout. The Fed’s bind is awkward: a prolonged war could cool the jobs market and push for rate cuts, but energy-driven inflation could equally argue for the opposite.
On the corporate side, Convatec used its capital markets day in London on Thursday to launch its ‘Accelerate’ strategy, targeting 6-8% annual organic revenue growth from 2027, an adjusted operating margin of 24-26%, and double-digit earnings per share growth.
Deutsche Bank, which holds a buy rating and a 315p target price on the stock, had framed the event as a credibility test rather than a day for new numbers – with investors focused on pipeline visibility and the believability of the margin improvement path.
British American Tobacco also confirmed Dragos Constantinescu as its permanent chief financial officer, ending a period of uncertainty at the top of the tobacco giant’s finance function.