London stock benchmarks moved lower on Thursday, breaking a three-session run of gains as risk appetite cooled following comments from US President Donald Trump indicating a willingness to carry out stronger strikes on Iran. Earlier signals from the president had raised investor hopes for a rapid end to the conflict, but his subsequent remarks prompted a broad shift to safer assets.
By 1149 GMT the FTSE 100 had dipped 0.2%, while the FTSE 250 posted a larger decline of 0.9%. Despite the pullback, both indexes remained positioned to close the holiday-shortened week with gains.
Sector movers
- Energy: The sector led gains, up 3.6%, after oil surged more than 7% in response to renewed worries about supply interruptions tied to the conflict. Major oil producers saw notable share-price appreciation.
- Oil majors: BP and Shell were among the top performers on the benchmark, rising 4.5% and 3.3% respectively.
- Precious metals miners: Miners were the weakest performers, falling 5.1% after gold retreated following the president's comments.
Macro and sentiment indicators
Market-implied expectations now include more than two quarter-point reductions in Bank of England policy rates by year-end, according to data compiled by LSEG. At the same time, a survey of accountants covering a 10-week period through March 16 showed a deterioration in British business confidence, slipping from +2.8 on the eve of the conflict to -1.1 by the survey's close.
In related data, a Bank of England survey indicated that British companies expect to accelerate price increases over the coming 12 months as they respond to a surge in energy costs linked to the Iran war.
Market calendar
Traders will face a shortened schedule with markets closed for Good Friday and Easter Monday.
Note on valuation tools: The article referenced a Fair Value calculator that uses a mix of 17 industry valuation models to assess stocks such as BP, and suggested it as a rapid method to gauge whether BP or other names appear undervalued.