UK stocks fall as optimism over quick Middle East ceasefire fades
April 2 (Reuters) - London's main indexes fell on Thursday, snapping three straight days of gains, as market sentiment weakened after U.S. President Donald Trump vowed more aggressive strikes on Iran.
Trump had earlier signalled he wanted a quick end to the war, raising hopes of de-escalation, but his latest remarks have spurred a risk-off mood across financial markets.
The blue-chip FTSE 100 index .FTSE fell 0.2% by 1149 GMT, while the midcap FTSE 250 .FTMC was down 0.9%. Both indexes were still on track to end the holiday-shortened week higher.
The energy index .FTNMX601010 rose 3.6% after oil jumped more than 7% following Trump’s comments, stoking investor fears about sustained supply disruptions.
Oil majors BP BP.L and Shell SHEL.L rose 4.5% and 3.3% respectively, ranking among the top gainers on the benchmark index. O/R
Precious metal miners .FTNMX551030 fell 5.1% and were the biggest drag on the index, after gold prices slid following the comments. GOL/
Markets are pricing in more than two quarter‑point cuts by the Bank of England by the end of the year, according to data compiled by LSEG.
British business confidence fell from +2.8 on the eve of the conflict to -1.1 by the end of the 10-week survey period on March 16, according to a survey of accountants that echoed similar concerns from other groups since the start of the U.S.-Israeli attacks.
British companies expect to raise prices more quickly in the coming 12 months as they respond to a surge in energy prices due to the Iran war, a Bank of England survey showed.
Markets will be closed for Good Friday and Easter Monday.
