FTSE 100 Live 02 April: Oil price surges and stocks fall on Trump address

Stock markets are lower and oil prices higher after President Trump ’s address on the Iran war broke little new ground .

The price of a barrel of Brent crude jumped above $107, having fallen sharply to below $100 on Wednesday.

Meanwhile, Lloyds Banking Group has reiterated its £1.95 billion provision for the cost of motor finance redress .

FTSE 100 steadies, mid-cap benchmark down 1%
Stock market sentiment has calmed after an earlier sharp fall by the FTSE 100 index.

London’s top flight is 14.40 points lower at 10,350.39, reflecting the support of stronger oil, utility and tobacco stocks.

In contrast, the FTSE 250 index is more than 1% lower and leading benchmarks in Paris and Frankfurt have fallen 1% and 1.4% respectively.

McBride lifts prices as cost pressures mount
Oven Pride household goods group McBride has revealed “temporary” price hikes to cover increased costs from the Iran war.

It also warned it is seeing the first signs of supply shortages caused by the conflict.

The group makes branded and white label household and cleaning products for the likes of Tesco and Sainsbury’s.

It said the “most heavily impacted” chemical and packaging suppliers are pushing through price increases as they face rising costs for petrochemical-derived feedstocks and higher energy costs in chemical and packaging production.

McBride’s comments came in an update as it also announced a £34.5 million deal to buy Eurotab – a French-based specialist in cleaning tablets, such as for dishwashers.

FTSE 100 lower as IAG falls 3%, Lloyds drops 2%
The FTSE 100 index has fallen 0.6% or 63.34 points to 10,301.45 after stocks gave up their gains of the previous session.

Barclays fell 9.7p to 399.4p, British Airways owner IAG shed 3% or 11.4p to 358.4p and Rolls-Royce weakened 31.5p to 1175.5p.

Other fallers included Lloyds Banking Group, which dropped 2% or 1.8p to 95.8p after the lender made no change to its provision for motor finance redress.

SSE edged up 10.3p to 2686.3p, despite lifting its earnings guidance for the year just ended.

Stocks under pressure as stagflation fears rise
Wall Street futures point to a 1.2% fall by the S&P 500 index after President Trump’s address left traders fearing an escalation of the Middle East conflict.

Brent crude touched $108 a barrel after a rise of 6.8%, while Japan’s Nikkei 225% lost 2.4% after yesterday’s strong session.

IG said: “Trump said the US would “finish the job” within weeks but offered no clear ceasefire timeline or diplomatic path, leaving markets uneasy about further escalation and sustained military activity in the region.

“Risk assets sold off sharply, with Asian indices down as much as 3.6% and US and European futures also weaker, as investors responded to fading hopes of a near-term resolution.”
The US dollar reversed recent declines as investors moved out of risk-sensitive currencies and into defensive positions.

IG said the combination of rising oil prices and geopolitical tension renewed fears of stagflation in the global economy.

The trading platform added: “Investors are expected to remain cautious in the near term, with attention on supply risks, developments in the Middle East and upcoming US payrolls data for further direction.”
Lloyds makes no change to motor finance provision
Lloyds Banking Group today disclosed no change in the amount it is setting aside to cover the cost of motor finance redress.

The statement by the lender follows its assessment of Monday’s FCA’s announcement on the final rules of the industry-wide compensation scheme.

Lloyds disclosed in October that it has set aside an additional £800 million, which took its total provision to £1.95 billion including operational costs.

The bank said today: “There remain a number of uncertainties including response rates, operational costs and any litigation.

“The ultimate outcome may also differ dependent upon potential actions by various parties, including legal proceedings and complaints.

An update will be provided as appropriate with the first quarter results at the end of April.

“The group remains committed to ensuring customers receive appropriate and timely redress.”
Oil price resumes rise, FTSE 100 seen lower
Oil prices have jumped 6% and the FTSE 100 index is set to fall after an address by President Trump dealt a blow to earlier hopes of Middle East peace .

His vow to hit Iran “extremely hard” sent Brent crude up to $107.65 a barrel, having fallen back in dealings yesterday.

Stock markets have given up some of this week’s gains, with the Nikkei 225 down by more than 2% and the FTSE 100 set for a fall of 0.9%.

London’s top flight last night closed 1.9% higher at 10,364.79 while the FTSE 250 lifted 2.3%.

US futures are more than 1% lower after the Dow Jones Industrial Average yesterday rose 0.5%, the S&P 500 index added 0.7% and the Nasdaq Composite improved 1.2%.

Deutsche Bank said: “After rallying sharply over the previous two sessions, market sentiment has deteriorated overnight after President Trump’s much anticipated address last night delivered little to nothing new on potential timelines or conditions for ending hostilities against Iran.”