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London stocks extended their rally on Tuesday amid reports that US President Donald Trump is prioritising diplomatic efforts over further military escalation in Iran, while easing oil prices helped steady investor nerves. The FTSE 100 closed up 48.49 points, 0.5%, at 10,176.45. The FTSE 250 ended up 249.21 points, 1.2%, at 21,203.71, and the AIM All-Share advanced 7.00 points, 1.0%, at 717.12. The Cboe UK 100 was up 0.7% at 1,014.64, the Cboe UK 250 was up 1.1% at 18,376.49, and the Cboe Small Companies Index was up 0.9% at 17,014.14. The Wall Street Journal cited US administration officials as saying Trump and his aides had come to the conclusion that a mission to reopen the Strait of Hormuz waterway would extend the length of the conflict past his four- to six-week timeline. The WSJ added that Trump had decided to focus on battering Iran’s missiles and navy, before looking to pressure Iran diplomatically to reopen the strait, through which one-fifth of the world’s oil is normally transported. However, Trump has also threatened to strike the Islamic Republic’s energy infrastructure should it not make a deal. Amid the uncertainty, the oil price eased from recent highs. Brent oil traded lower at $107.38 a barrel on Tuesday afternoon, from $112.46 late Monday. David Morrison, senior market analyst at Trade Nation said traders continue to be ‘buffeted by conflicting statements’ from Trump concerning the next steps in the US/Israeli war with Iran. In European equities on Tuesday, the CAC 40 in Paris closed up 0.6%, while the DAX 40 in Frankfurt rose 0.5%. Stocks in New York were also higher. The Dow Jones Industrial Average was up 1.1%, the S&P 500 index was 1.4% higher, and the Nasdaq Composite advanced 1.9%. The yield on the US 10-year Treasury trimmed to 4.33% on Tuesday from 4.34% on Monday. The yield on the US 30-year Treasury stretched to 4.91% from 4.90%. The pound rose to $1.3205 on Tuesday afternoon from $1.3191 at the equities close on Monday. Against the euro, sterling fell to €1.1463 from €1.1518. The euro stood higher against the greenback at $1.1523 from $1.1452. Against the yen, the dollar was trading lower at JP¥159.02 compared to JP¥159.53. Eurozone inflation leapt in March because of surging energy prices caused by the Iran war, official data showed Tuesday, hitting its highest level since January 2025. Consumer prices rose by 2.5% in March, sharply up from 1.9% in February, the EU’s statistics agency said, albeit below FXStreet consensus which forecast a steeper increase of 2.7%. But annual core inflation - which strips out volatile components such as energy and food - eased slightly to 2.3% in March from 2.4%, while food inflation also declined. Following the data, the European Commission urged EU member states to make ‘timely and coordinated preparations’ to secure oil supplies. Analysts at Citi said energy price rises have been partly ‘tamed’ by indirect tax cuts on final prices in some jurisdictions such as Italy and Spain, although the largest countries in the bloc are still holding off. ‘We expect more governments to intervene with fiscal measures to cushion the energy hit,’ Citi added. In London, Unilever shares fell 7.3% as it confirmed it has agreed to combine its Foods business with McCormick & Co, creating a $20 billion revenue ‘global flavour powerhouse’ and accelerating its shift to a pureplay home and personal care group. The deal will see Unilever separate its Foods division and merge it with McCormick in a transaction valuing the business at $44.8 billion. Under the terms, Unilever and its shareholders will receive shares equivalent to 65% of the combined company, alongside $15.7 billion in cash. Following completion, Unilever will become a ‘pureplay’ home and personal care company, with pro-forma annual revenue of around €39 billion, focusing on Beauty, Wellbeing, Personal Care and Home Care. Analysts at RBC Capital Markets said they were ‘unimpressed’. ‘What we really can’t get our heads round is why is Unilever disposing of a business dominated by two brands, of which it owned 100%, for a minimal control premium and leaving its shareholders with a 55% shareholding in a sprawling food business,’ the broker said. Miners supported the FTSE 100 as the price of gold, silver and copper rose. Gold traded at $4,613.15 an ounce on Tuesday, up from $4,541.34 at the same time on Monday. Antofagasta, Fresnillo, Endeavour Mining and Anglo American were prominent gainers, up 5.3%, 4.1%, 4.2% and 2.8% respectively. Sports retailer JD Sports rallied 3.8% ahead of key trading partner Nike’s financial third quarter results after the New York market close. On the FTSE 250, Raspberry Pi stole the show, storming 47% to the good, after well received full-year results. The Cambridge, England-based manufacturer of low-cost computers said full-year 2026 profitability is anticipated to be in-line with market estimates, with revenue materially higher. The firm, which listed in 2024, said increased memory costs are being ‘successfully navigated’. In 2025, adjusted earnings before interest, tax, depreciation and amortisation improved 25% to $46.4 million from USSD37.2 million, compared to guidance of ‘not less than’ $45 million provided in January. Also in favour, Ashmore rose 6.7% after the asset manager announced a strategic partnership with Japan Post Insurance which could see the Japanese life insurer take an up to 2.9% stake in the London-based firm. Through the partnership Japan Post Insurance initially intends to invest $1 billion into a range of Ashmore managed emerging market funds, in addition to JPI’s assets currently under management by Ashmore. Other risers on the FTSE 250 included Irn Bru maker AG Barr, up 5.7%, and food packaging company Hilton Food, up 4.0%, after well received results. Elsewhere, Future plunged 24% as the owner of Go.Compare said continued shifts in the audience derived from Google search are having a more pronounced impact than anticipated, negatively impacting higher-margin programmatic advertising and e-commerce revenue. The biggest risers on the FTSE 100 were Antofagasta, up 166.00p at 3,327.00p, Endeavour Mining, up 182.00p at 4,460.00p, Fresnillo, up 130.00p at 3,304.00p, Metlen Energy & Metals, up 1.30p at 33.40p and JD Sports Fashion, up 2.56p at 70.66p. The biggest fallers on the FTSE 100 were Unilever, down 329.50p at 4,199.00p, IMI, down 62.00p at 2,530.00p, Croda, down 53.00p at 2,815.00p, Diageo, down 23.00p at 1,396.00p and Coca-Cola Europacific Partners, down 110.00p at 6,870.00p. Wednesday’s global economic calendar has a slew of manufacturing PMI reports, including the UK at 0930 BST. Elsewhere, ADP job figures and retail sales figures will be released in the US. Wednesday’s local corporate calendar has trading statements from retailer Topps Tiles and engineering services company Renew. Copyright 2026 Alliance News Ltd. All Rights Reserved.
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