FTSE 100 Live 09 April: Index fades and oil price rises amid ceasefire strain

The Brent crude oil price today resumed its rise amid signs the Middle East ceasefire is already under strain .

The oil benchmark this morning stood near $98 a barrel, having slumped 13% in dealings yesterday .

The FTSE 100 index today faded after Wednesday’s 2.5% relief rally, with Wall Street futures pointing to a weaker session.

Market update: FTSE 100 fades, defensive stocks in demand
Doubts over the durability of the Middle East ceasefire today stalled the FTSE 100 index as stock markets faded in response to a $98 a barrel oil price.

London’s top flight slipped 27.03 points to 10,581.85 as limited progress reopening the Strait of Hormuz caused the oil benchmark to rise more than 3% in dealings today.

Investors in London this morning turned to defensive stocks as United Utilities and Severn Trent rose 1.5% and Vodafone improved by a penny to 118.6p.

The fallers board included the catering group Compass and housebuilder Persimmon , alongside ex-dividend stocks including Lloyds and Standard Life .

Dan Coatsworth, head of markets at AJ Bell, said: “There is an air of renewed nervousness pervading financial markets after the euphoria which was initially prompted by the US-Iran ceasefire.

“This agreement already seems to be fraying at the edges – with continued strikes by Israel on Lebanon a key sticking point.

With talks on a lasting deal yet to begin it’s understandable that investors are taking a circumspect view.”
The FTSE 250 index followed yesterday’s 4% advance with a fall of 1% or 215.23 points to 22,219.60.

ME Group International rose 4% or 5.2p to 147p after the vending equipment firm announced a deal to install Wash.ME laundry machines at Asda sites across the UK.

FTSE 250 down 0.9% as risk appetite fades
The UK-focused FTSE 250 index has followed yesterday’s 4% surge with a fall of 0.9% as risk appetite fades on doubts over the durability of the Middle East ceasefire.

The FTSE 100 index slipped 0.25% and the Dax in Frankfurt weakened by 1% after the price of Brent crude rose by more than 3% to above $98 a barrel.

Susannah Streeter, chief investment strategist at Wealth Club, said: “While overall there is still hope that the truce with Iran will hold, it’s becoming clear just how complex achieving a longer-lasting deal in the Middle East will be.

“The US may have ceased attacks on Iran, but Israel has continued to strike Lebanon, prompting accusations from Tehran that this violates the terms of the ceasefire.

“That means, right now, that the Strait of Hormuz, the chokepoint for global energy supplies, remains largely obstructed.”
FTSE 100 opens higher, Nikkei 225 down 0.7%
The improvement by London’s top flight has come despite expectations for a weaker session on Wall Street.

The Nikkei 225 in Tokyo earlier fell 0.7% as traders reacted to signs of strain in the Middle East ceasefire agreement.

In the FTSE 100, Vodafone rose 1.8p to 119.4p and GSK lifted 24p to 2149p.

Metlen Energy & Metal lifted 2% after posting annual results.

Stock market flotations hit by global uncertainty
London’s stock market listings have dried up, with only two initial public offerings (IPOs) recorded in the first three months of the year.

The subdued activity follows a late flurry of IPOs last year, including the flotations of tinned tuna maker Princes Group and small business lender Shawbrook.

EY-Parthenon said heightened geopolitical tensions had put the brake on new listings, along with worries about the value of companies linked to technology and AI.

However, EY-Parthenon said there was a good pipeline for UK listings and strong interest from domestic and international investors.

Oil price edges higher, still 40% above pre-war level
Brent crude today rose back towards $97 as uncertainty over the US-Iran truce and limited progress on reopening the Strait of Hormuz kept supply concerns elevated.

IG said: “Shipping remains constrained by security risks, mines and high insurance costs, with analysts expecting little additional supply to flow in the near term despite the ceasefire.”
The trading platform said US futures softened following Wednesday’s sharp gains as investors reassessed geopolitical risks and the durability of the ceasefire.

It added: “Oil prices remain around 40% above pre-conflict levels, reinforcing expectations of persistent inflation and reducing market pricing for rate cuts, with the Federal Reserve seen on hold and risks skewed towards hikes.”
Whilst the price of Brent crude fell sharply yesterday, the contract for six months ahead is still above last week’s level at more than $80 a barrel.

Rising mortgage costs dent buyer demand - RICS
Rising mortgage costs have dented demand from buyers in the property market, dampening longer-term expectations for house prices.

The Royal Institution of Chartered Surveyors (RICS) said a net balance of 39% of professionals saw new buyer inquiries falling rather than rising in March, deteriorating from a balance of 29% in February.

This was the weakest reading since August 2023, as housing market optimism seen earlier in the year faded.

Oil price resumes rise, Asia markets struggle
The price of Brent crude has risen and Asia stock markets are lower as optimism following yesterday’s ceasefire agreement begins to cool.

Amid few signs of Iran relinquishing control of the Strait of Hormuz, the oil benchmark followed yesterday’s 13% reverse by lifting 2.4% to above $97 a barrel.

The Nikkei 225 retreated 0.6% and the Hang Seng index slipped 0.4% after yesterday’s strong session.

The FTSE 100, which rose 2.5% to 10,608.88 but underperformed European indices in yesterday’s session, is seen opening slightly higher.

Stocks due to trade ex-dividend include Standard Life, Lloyds Banking Group, Centrica, Reckitt Benckiser, Haleon and Rentokil Initial.

On Wall Street, the Dow Jones Industrial Average last night rose 2.9% and the S&P 500 index lifted 2.5%.

The Nasdaq Composite advanced 2.8%.