FTSE 100 traded lower for a second session on Friday (March 27, 2026) as cautious sentiment dominated markets, with investors assessing the latest developments in US Iran talks. The early gains were short-lived, with the index dipping back into the red in early trading. It's now 27 points down at 9,945.08.
Overall mood remains uncertain as there have been no concrete breakthroughs. It left the market with limited catalysts while concerns over inflation and higher interest rates persist. The index of London large caps closed down 1.3% at 9,972.17 on Thursday (March 26, 2026).
Global markets are still mixed, with US futures also edging higher, suggesting a potential rebound after a weak session on Wall Street. The Nasdaq Composite fell 2.4%, the S&P 500 dropped 1.7%, and the Dow Jones Industrial Average declined 1%.
Futures indicate the FTSE 100 to a gain of around 29 points at the open, which would partially recover Thursday’s 134-point drop to 9,972, after closing 1.3% lower on Thursday.
The euro traded at USD1.1539 early Friday, lower than USD1.1563 late Thursday. Against the yen, the dollar was quoted at JPY159.61 versus JPY159.65.
Sterling was quoted at USD1.3343 early Friday, higher than USD1.3338 at the London equities close on Thursday. Against the euro, sterling stood at EUR1.1561, unchanged from the day prior.
In the US on Thursday, Wall Street ended lower, with the Dow Jones Industrial Average down 1.0%, the S&P 500 down 1.7% and the Nasdaq Composite down 2.4%. Gold was quoted at USD4,466.79 an ounce early Friday, higher than USD4,383.70 on Thursday.
In Asia on Friday, the Nikkei 225 index in Tokyo was down 0.4%. In China, the Shanghai Composite was up 0.6%, while the Hang Seng index in Hong Kong was up 0.2%. The S&P/ASX 200 in Sydney closed up 0.7%.
On the upside, AstraZeneca gained about 3% after reporting positive phase three trial results for its COPD treatment tozorakimab. Meanwhile, data showed UK retail sales fell less than expected in February, down 0.4% both including and excluding fuel. For the week, the UK index is marginally up.
Shortly after the open, London's blue chip index rose above the 10,000 mark before pulling back slightly to show a gain of 23 points to 9,994.91.
Declines in banking, energy, and defence stocks weighed on the index, with HSBC, Lloyds, and Barclays down between 0.5% and 1%, while Shell and BP fell around 0.5% to 0.7%. Rolls Royce dropped 1.4% and BAE Systems lost 0.8%.
Leading the losses are Compass (-2.06%), Fresnillo (-1.90%) and JD Sports Fashion (-1.57%).
Metlen Energy & Metals PLC slumped 8% after delaying the release of its FY25 results by 9 days at the request of its external auditors.
UK consumer confidence fell two points to -21 in March, according to GfK, as the Middle East conflict began to unsettle household sentiment.
The sharpest move came in economic expectations for the next twelve months, which dropped six points to -37. The Major Purchase Index also fell four points, while the Savings Index jumped six points to 27, a clear sign that people are holding back rather than spending.
In the UK, FTSE Russell said it will lower the minimum free float requirement for non-UK incorporated companies from 25% to 10%, aligning them with UK-incorporated firms. The change, effective from the June 2026 index review, aims to make UK indices more representative of the underlying economy.
"We regularly review our index methodologies to ensure they continue to reflect the markets they are designed to track," said FTSE Russell Global Head of Policy David Sol.
Also Read: Stock Market Update: Are Indian Stocks Outpacing the US Amid Global Oil Dip?
US President Donald Trump said talks with Tehran are "going very well" as he extended a pause on plans to target Iranian energy sites. After initially announcing a five-day pause on Monday, Trump said in a post on Truth Social: "As per Iranian Government request... I am pausing the period of Energy Plant destruction by 10 Days to Monday, April 6, 2026, at 8 PM."
Iran has not formally responded to the extension but earlier said it was awaiting a US response to its conditions for a ceasefire. Brent oil was trading at USD107.76 a barrel early Friday, lower than USD108.80 late Thursday.
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Disclaimer: Analytics Insight does not provide financial advice or guidance on cryptocurrencies and stocks. Also note that the cryptocurrencies mentioned/listed on the website could potentially be risky, i.e. designed to induce you to invest financial resources that may be lost forever and not be recoverable once investments are made. This article is provided for informational purposes and does not constitute investment advice. You are responsible for conducting your own research (DYOR) before making any investments. Read more about the financial risks involved here.