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UK stocks pull back after rally on Middle East ceasefire doubts

ReutersApr 9, 2026 9:57 AM
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- The main UK stock indexes eased on Thursday after recording their strongest session in months a day earlier, as oil prices rebounded on growing doubts over a fragile ceasefire in the Middle East conflict.

The blue-chip FTSE 100 .FTSE dipped 0.3% by 0927 GMT, while the midcap FTSE 250 .FTMC slipped 1.1%.

  • The FTSE 350 energy index .FTNMX601010 climbed 1% as oil prices LCOc1, CLc1 jumped almost 3% on concerns that energy flows through the crucial Strait of Hormuz will remain restricted. O/R

  • Viability of the ceasefire is in question amid continued Israeli strikes on Lebanon, causing Iran to suggest it would be "unreasonable" to proceed with talks to forge a permanent peace deal.

  • The FTSE 100 .FTSE recorded its biggest percentage gain in a year on Wednesday after the two-week ceasefire deal between the U.S. and Iran.

  • Rate-sensitive homebuilders .FTNMX402020 came under pressure as bond yields edged higher. Two-year gilt yield GB2YT=RR, which reflects near-term rate expectations, rose to 4.25% after its largest one-day fall since March 2023.

  • Traders were betting on 40 basis points of rate hikes from the Bank of England by the end of this year, compared to 32 bps on Wednesday.

  • Britain's housing market cooled noticeably last month as economic uncertainty stemming from the Iran war unnerved buyers who face rising mortgage rates, a survey from the Royal Institution of Chartered Surveyors showed.

  • Ceres Power Holdings CWR.L fell 7.7% after brokerage Peel Hunt downgraded the clean energy technology developer's stock to "sell" from "hold."

  • ME Group International MEGPM.L climbed 3.7% after the vending machine operator secured a partnership with retailer ASDA to install Wash.ME laundry machines.

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