The FTSE 100 opened on a cautious note, slipping 6.41 points to 10,597.07, as rising oil prices and mixed global signals weighed on investor sentiment. Despite the slight decline, the index continues to show resilience, supported by selective strength across sectors.
A major factor weighing on the market is the sharp increase in oil prices. Brent crude rose over 1.5% to above $97 per barrel, driven by geopolitical tensions surrounding the Strait of Hormuz.
Also, North Sea oil prices surged on Thursday as European and Asian refineries rushed to secure oil cargoes. Forties Blend, a marker for oil for effective delivery, hit roughly $147 (£109.5), reaching above highs seen during the 2008 financial crisis, according to reports from the Financial Times.
Convatec rose 3.39% to £231.60, while fashion retailer Burberry advanced 2.75% to £1,164.60. Rightmove gained 1.89% to £441.70, while Pershing Square Holdings climbed 1.62% to £4,146.
Also, Kingfisher added 1.60% to £304.90, and Auto Trader increased by 1.58% to reach £481.40.
This highlights strength in consumer-facing and property-linked sectors, suggesting that investors are selectively allocating capital amid uncertainty.
On the downside, Lion Finance declined 0.56% to £10,650, while Endeavour Mining fell 0.67% to £4,724.
Also, Fresnillo dropped 0.85% to £3,499, and Anglo American slipped 0.74% to £3,432.50. Meanwhile, 3i Group lost 0.59% to £2,681.50, and Reckitt Benckiser Group edged lower by 0.27% to £5,166.
The weakness in mining stocks reflects volatility in commodity prices and global demand outlook, which remain uncertain.
Just days after a two-week ceasefire, Donald Trump accused Iran of “doing a very poor job” of allowing oil to pass through the Strait of Hormuz, as confusion over Lebanon escalates.
In a post on Truth Social, Trump said, "Iran is doing a very poor job, dishonorable some would say, of allowing Oil to go through the Strait of Hormuz.” He added, “That is not the agreement we have."
In the UK, retail activity showed moderate improvement but remained below expectations. Total footfall rose 2.4% year-over-year in March, with high street visits increasing by 2% and shopping center traffic up 2.6%.
AO World said it had mostly shielded itself from potential fuel disruption. The group said it had hedged around 80% of fuel use and all electricity costs for the next financial year.
For the year to March, revenue is expected to rise about 11%, with pre-tax profit set at the top end of the £45 million to £50 million guidance.
Boss John Roberts said, "The numbers speak for themselves again… we continue to build momentum, and all key metrics continue to improve, with an exciting pipeline of new initiatives ahead.”
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In the US, the Dow Jones Industrial Average and the S&P 500 index both rose around 0.6%. The price of gold remained near $4,766 an ounce.
In Asia, the Kospi rose 1.5% to 5,866.7 points, with the index up 36.1% year to date. Japan’s Nikkei 225 jumped 1.9% to 56,973.1 points.
China’s CSI 300 gained 1.8%, while Hong Kong’s Hang Seng and Shanghai’s Composite both rose 0.7% and 0.8%, respectively. India's Nifty 50 gained 0.9%, but the index remains down 8.2% this year.