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The FTSE 100 was on the decline on Thursday, while oil was back on the up, on nervy trade as doubts about the health of a ceasefire in the Middle East hit sentiment. The FTSE 100 index fell 35.56 points, 0.3%, at 10,573.32. The FTSE 250 declined 241.67 points, 1.1%, at 22,193.16, though the AIM all-share added 2.82 points, 0.4%, at 766.63. The Cboe UK 100 fell 0.2% at 1,053.74, the Cboe UK 250 lost 0.9% at 19,284.49, but the Cboe small companies edged up 0.1% at 17,581.22. The CAC 40 in Paris fell 0.8%, while Frankfurt’s DAX 40 lost 1.1%. ‘Doubt about the durability of the Iran ceasefire is filtering in, fraying nerves once again,’ Wealth Club analyst Susannah Streeter commented. ‘While overall there is still hope that the truce with Iran will hold, it’s becoming clear just how complex achieving a longer-lasting deal in the Middle East will be. The US may have ceased attacks on Iran, but Israel has continued to strike Lebanon, prompting accusations from Tehran that this violates the terms of the ceasefire.’ The analyst continued: ‘That means, right now, that the Strait of Hormuz, the chokepoint for global energy supplies, remains largely obstructed, with oil tanker traffic suspended once again after Israel’s renegade action. A delegation led by US Vice President JD Vance is heading to Iran this weekend to try and recover the situation and reopen the strait to tankers. Even if shipments resume, the risks won’t disappear overnight. Tankers may be forced to navigate mined waters and a heightened military presence, all of which will keep insurance premiums high and freight costs elevated.’ A barrel of Brent rose to $98.33 early Thursday afternoon, from $95.20 at the time of the London equities close on Wednesday. Gold declined to $4,737.38, from $4,753.65 at the time of the London equities close on Wednesday. The FTSE 100’s oil majors shone, with BP up 2.3% and Shell rising 0.8%. The latter rose despite Rothschild & Co Redburn cutting the stock to ’neutral’. Utilities also climbed, with Severn Trent up 1.4% and SSE adding 1.1%. But on the decline, precious metal miner Fresnillo shed 3.4%, while housebuilder Barratt Redrow gave back 1.8% as inflationary worries prompted by the conflict are yet to subside despite the ceasefire. Inflation will be under the spotlight on Wednesday, with the latest US personal consumption expenditures data for February out at 1330 BST. Another fourth-quarter GDP estimate is released at the same time. Then on Friday, there is a US consumer price index reading for March. Overnight, minutes from the Federal Reserve’s most recent meeting were released. ‘The minutes of the March 17-18 FOMC meeting pointed to participants’ increased concerns about elevated inflation and upside inflation risks, amid the surge in energy prices resulting from the conflict in the Middle East. However, the vast majority of participants also viewed risks to employment as skewed to the downside,’ analysts at Barclays commented. ‘We retain our baseline expectation that the FOMC will want to hold rates unchanged until September, deliver a 25bp rate cut at the September meeting, and then another cut in March 2027.’ Against the dollar, sterling fell to $1.3405 midday Thursday from $1.3438 late Wednesday. Against the euro, it declined to €1.1481 from €1.1495. Against the dollar, the single currency faded to $1.1675 from $1.1690. Versus the yen, the buck traded at JP¥159.02, up from JP¥158.39. In New York, the Dow Jones Industrial Average is called to open 0.4% lower, the S&P 500 down 0.3% and the Nasdaq Composite down 0.2%. Back in London, Energean shares rose 3.5%, among the best FTSE 250 performers, supported by a higher oil price. In addition, it has received notice from the Israeli Ministry of Energy & Infrastructure permitting the resumption of production and operations at its Energean Power floating production storage & offloading unit, or FPSO. Operations were suspended temporarily in early March owing to the geopolitical escalation in the region. Riverstone Energy surged 16%. It announced it will return £30 million to shareholders through a second compulsory partial redemption of up to 2.5 million shares. The firm kicked off a managed wind down in August. Elsewhere in London, ITM Power shot up 14%. It said it has received backing from the UK government through a strategic investment and grant. The Sheffield-based designer and manufacturer of electrolyser systems for green hydrogen production said publicly-owned Great British Energy Group is to invest £40 million into ITM through a non-pre-emptive subscription. The firm also said the UK Department for Energy Security & Net Zero has confirmed its intention to award the company a grant of £46.5 million. ITM said the subscription and grant will support the development of 1 gigawatt capacity to build its next-generation Chronos electrolyser stack technology. The retail sector was in focus on Thursday. Uniqlo owner Fast Retailing raised its guidance and reported higher earnings for the first half of its financial year. Revenue climbed 15% to JP¥2.055 trillion in the six months to the end of February, around $12.93 billion, from JP¥1.790 trillion a year prior. Operating profit jumped 32% to JP¥400.67 billion from JP¥304.22 billion, while attributable profit advanced 20% to JP¥279.29 billion from JP¥233.57 billion. It now sees annual operating profit of JP¥700.00 billion, up from previous guidance of JP¥650.00 billion and last year’s figure of JP¥564.27 billion. AJ Bell analyst Dan Coatsworth commented: ‘Japanese group Fast Retailing has put a lot of money behind Uniqlo’s expansion and shoppers are loving it. Uniqlo is by no means the cheapest retailer, but it has developed a reputation for selling good quality, affordable clothes and offering a pleasant shopping experience. ‘Many people are happy to pay a little bit more if they feel they’re getting something that will last them a while, and Uniqlo is smiling all the way to the bank.’ Fast Retailing shares fell 0.5% in Tokyo on Thursday. It reported after the bell. Copyright 2026 Alliance News Ltd. All Rights Reserved.
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