FTSE 100 Live: Index Rises 2.3% as Middle East Ceasefire Sparks Global Rally

The FTSE 100 opened higher on April 8. The index witnessed a rise of around 2.34% to 10,590.86 as global equity markets reacted positively to the announcement of a two-week ceasefire in the US-Iran conflict. The index moved above key levels with support from strong gains in sectors like airlines, banks, and construction. However, energy stocks dragged due to a crash in oil prices.

Top Gainers: Airlines, Miners, and Cyclicals Lead

Antofagasta surged 12.10% to £3,854 while Anglo American rose 10.70% to £3,620 as commodity prices increased. 

Rolls-Royce advanced 9.58% to £1,252 on expectations of stronger global travel demand. Persimmon gained 9.24% to £1,182 as easing interest rate expectations supported housing stocks.

Fresnillo posted a strong gain of 9.09% to reach £3,673. The parent company of British Airways International Airlines Group climbed 8.61% to £391.20 as it benefited from falling fuel costs. 

Banking stocks also gained with Barclays and Lloyds rising in the range of 7% to 8% respectively supported by improved economic sentiment and declining bond yields.

Energy Stocks Decline as Oil Prices Crash

While most sectors moved higher, energy stocks faced pressure as Brent crude futures dropped 14.03% to $93.94 per barrel after the ceasefire reduced immediate supply risks from the Strait of Hormuz.

Shell shares fell 6.71% to £3,328.50 while BP declined 7.82% to £550.80. This reflects the impact of lower oil prices on earnings expectations. 

British American Tobacco declined 0.70% to 4,399 while Imperial Brands backed 0.30% to £3,129.50.

Centrica dipped 3.06% to £212 and BAE Systems declined 0.11% to £2,269. 

Macro Signals

UK 10-year gilt yields declined to around 4.65%, indicating easing inflation concerns and improved expectations around monetary policy. 

Meanwhile, gold prices surged nearly 3% to approximately $4,835 per ounce as investors repositioned amid changing risk dynamics. The US dollar index weakened by around 1%. This signals reduced demand for safe-haven assets.

Close Brothers Set for £320 million Motor Finance 

Close Brothers insisted it is well-positioned to absorb the financial hit from the City watchdog’s motor finance redress scheme. 

The lender on Wednesday said it estimates the cost of the Financial Conduct Authority’s (FCA) redress scheme would come in at £320 million, falling broadly in line with the £300 million the firm had estimated. 

This will hit its CET1 ratio, a key metric indicating its financial health, by 25 basis points, taking it to 14%. This remains ahead of the bank’s 12 to 13% target.

Also Read: Stock Market Today: Sensex Jumps 2,700 Points, Nifty 50 Near 23,900 

Asian Markets Surge Amid Ceasefire

After nearly six weeks of volatility investors had some relief from the US-Iran conflict as they agreed to a two-week ceasefire.

Kospi gained 6.5% to 5,854.1 points with the index now up 35.8% this year to date. Japan’s Nikkei 225 rose 5.4% to 56,357.6 points. 

The Shanghai Composite and Hong Kong’s Hang Seng rose 2.4% and 2.9%, respectively while India’s Nifty 50 increased 3.6%.