Economic news

UK Stocks Pull Back after Rally on Middle East Ceasefire Doubts

April 9 (Reuters) - 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 ​dipped 0.3% by 0927 GMT, while the midcap FTSE 250 ​slipped 1.1%.

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

  • 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  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 came under pressure ‌as ⁠bond yields edged higher. Two-year gilt yield , 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 fell 7.7% after brokerage Peel Hunt downgraded the clean energy ⁠technology ​developer's stock to "sell" from "hold."

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

Reporting by Sruthi Shankar in Bengaluru; Editing by Sahal Muhammed

Source: Reuters


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