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Stock prices in London were lower on Thursday midday, as UK companies expect to increase prices more quickly as a result of the war between US-Israel and Iran; meanwhile BP and Shell saw their shares rise amid a higher Brent oil price, while gold and silver were down. The FTSE 100 index was down 24.09 points, 0.2%, at 10,340.70. The FTSE 250 was down 198.48 points, 0.9%, at 21,489.71, and the AIM all-share was down 8.57 points, 1.2%, at 730.68. The Cboe UK 100 was down 0.2% at 1,029.19, the Cboe UK 250 was down 0.9% at 18,615.79, and the Cboe small companies was down 0.2% at 17,109.54. UK companies have said they expect to increase prices more quickly as they come under pressure from surging energy prices linked to the Iran war, according to Bank of England data. The central bank’s latest survey of finance bosses across UK companies also highlighted growing uncertainty over the business outlook. The Decision Maker Panel [DMP] survey showed that firms expected to increase their prices by 3.5% over the next 12 months, according to data for the three months to March. This is 0.1 percentage point higher than predicted over the three months to February. Meanwhile, the Bank’s single month data increased to 3.7% inflation expectations in March from 3.4% in February. Further, in March, 57% of firms reported that the overall level of uncertainty facing their business was high or very high, up by 10 percentage points from February. As for the conflict in the Middle East, Trump said the US was ‘very close’ to achieving its objectives against Iran, and warned: ‘Over the next two to three weeks, we are going to bring them back to the Stone Ages, where they belong.’ Iran responded by firing missiles at Tel Aviv. Later, Iranian military command centre Khatam Al-Anbiya put out a statement carried on state TV warning the US and Israel to expect ‘more crushing, broader, and more destructive actions’. ‘Investors didn’t get what they wanted from President Trump’s address to the American people and have reacted accordingly,’ AJ Bell Investment Director Russ Mould commented. ‘Famously, uncertainty is kryptonite for the markets and between the contradictory messages from Trump, disputed claims on both sides, and the lack of clarity on a plan which can provide a resolution to the conflict they are getting a heavy dose of it right now.’ However, Mould noted: ‘Once again on a down day for markets in general, the FTSE 100 is spared the scale of losses seen elsewhere as heavyweight constituents BP and Shell enjoy gains. Traditionally defensive names in the tobacco and utilities sectors also helped to provide some ballast.’ BP led the FTSE 100, up 4.5%. Shell came in second, up 3.3%. Energy firm Centrica was up 1.8%, and British American Tobacco rose 1.6%, while National Grid gained 1.0%. Brent oil was quoted at $108.57 a barrel at midday in London on Thursday, up from $101.83 late Wednesday. Gold was quoted lower at $4,615.88 an ounce against $4,781.92. Silver was quoted lower at $70.59, compared with $75.08 an ounce at around midday on Wednesday. Precious metal miners remained low on the FTSE 100, with Fresnillo and Endeavour Mining down 4.8%. On the FTSE 250, Pan African Resources and Hochschild lost 6.6%. Elsewhere on the FTSE 100, Scottish Mortgage Investment Trust, gained 1.0%. The investor in public and private companies said the value of its holding in SpaceX has been increased so that the holding now makes up 19.3% of its portfolio as of March 31, up from 15.4% on February 28 and reflected in its net asset value per share of 1,316.12 pence as of March 31. Elon Musk’s Space Exploration Technologies Corp has filed confidentially for a US initial public offering, Bloomberg reported on Wednesday. The IPO would be the largest in history, with a valuation of over $1.75 trillion, according to unnamed sources. Back in London, FTSE 250 constituent Baillie Gifford US Growth Trust rose 0.9%. SpaceX now represents 14.9% of its portfolio, up from 11.9%, and the NAV per share was 301.12p on March 31. Edinburgh Worldwide Investment Trust was down 0.3%, despite SpaceX now comprising 20.4% of its portfolio, up from 16.3% at the end of February. Its NAV per share on March 31 was 227.47p. Edinburgh Worldwide Investing is currently proposing a tender offer for all of its shares to fend off activist shareholder Saba Capital Management. In small caps, BSF Enterprise shares doubled, after it unveiled a luxury handbag made from T-Rex Leather, which was developed using fossils of the Tyrannosaurus rex bones. ‘Following a six-week exhibition at the Art Zoo Museum, the one-of-a-kind T-Rex Leather handbag will be sold to the highest bidder,’ the lab-grown tissues and sustainable biotechnology firm said. Speedy Hire fell 13%, after cautioning that ‘market conditions have worsened’ through its fourth quarter to March 31. The tools and equipment hire company cited UK government budget uncertainty and, more recently, the Middle East conflict. Speedy Hire said it expects to report full-year earnings before interest, tax, depreciation, and amortisation of around £90 million, down from £97.1 million the year prior. In European equities on Thursday, the CAC 40 in Paris was down 1.1%, while the DAX 40 in Frankfurt was down 1.7%. France’s government deficit narrowed in February, data published by the Ministry of Economics, Finance, and Industrial & Digital Sovereignty showed. The budget deficit was reduced by 20% to €32.12 billion in February from €40.30 billion a year ago. In early February, France adopted a 2026 government budget following months of fraught negotiations, after Prime Minister Sebastien Lecornu survived the latest in a string of no-confidence motions. The pound was quoted at $1.3191 midday Thursday, lower compared to $1.3324 on Wednesday. Against the euro, sterling decreased to €1.1454 from €1.1476 a day prior. The euro stood lower at $1.1517, against $1.1608. Against the yen, the dollar was trading higher at JP¥159.61 compared to JP¥158.66. Stocks in New York were called lower. The Dow Jones Industrial Average was called down 1.1%, the S&P 500 index down 1.3%, and the Nasdaq Composite down 1.7%. The yield on the US 10-year Treasury was quoted at 4.37%, widening from 4.31%. The yield on the US 30-year Treasury was quoted at 4.95%, widening from 4.89%. Still to come on Thursday’s economic calendar are the US and Canadian trade balance data, as well as the US jobless figures. Copyright 2026 Alliance News Ltd. All Rights Reserved.
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