President Trump’s extension of Iran peace talks has failed to cool oil prices after Brent crude touched $110 a barrel.
The increase weighed on the FTSE 100 after Wall Street yesterday suffered its worst session since the start of the war.
Weaker retail sales and consumer confidence figures added to worries around the conflict’s impact on the UK economy.
FTSE 100 Live Friday
- CMA probes online reviews
- Retail sales volumes dip
- Lloyds compensates after IT glitch
Market update: Consumer stocks fall in weak FTSE 100, gilt yield tops 5%
10:06 , Graeme EvansHigher energy prices and weakening consumer sentiment today hit Marks & Spencer and Barratt Redrow shares as the FTSE 100 index suffered a fresh fall.
London’s top flight lost 0.5% or 53.52 points to 9918.65 after President Trump’s extension of Iran peace talks failed to stop Brent Crude touching $110 a barrel.
The latest rise in oil and gas prices followed reports that the US is considering sending as many as 10,000 additional ground troops to the Middle East.
Deutsche Bank said: “While the delay might reduce some of the immediate escalation risk, it offers no new visibility on the path towards resolution, given Iran’s denials over talks, and while the Strait of Hormuz remains largely closed.”
Wall Street futures are flat following last night’s worst session since the start of the war. The tech-focused Nasdaq Composite fell 2.4% to enter correction territory, having declined by 11% from its recent peak.
The growing fears of stagflation in the global economy was also reflected on bond markets as the UK 10-year gilt yield returned to an 18-year high above 5%.
The impact of higher interest rate expectations continues to be felt by housebuilders after Moneyfacts last night reported an average mortgage rate of 5.58%.
The retail spending outlook also darkened after the ONS announced a 0.4% drop in February sales volumes and GfK said consumer confidence weakened in March.
Capital Economics said: “We think the combination of a rebound in CPI inflation, easing wage growth and higher unemployment in our baseline scenario will mean consumer spending growth slows from 1% in 2025 to just 0.1% this year.”
On the FTSE 100 fallers board, JD Sports Fashion dropped 1.5p to 68.4p and Games Workshop retreated 2.5% or 460p to 17,760p.
Marks & Spencer slipped 2% or 7p to 324p, despite the support of UBS analysts after they reiterated their Buy stance with a price target of 425p.
Two of the worst performing stocks since the start of the war sustained more losses as Persimmon and Barratt Redrow fell 23. 5p to 1094.5p and 7.1p to 261.2p respectively.
On the risers board, AstraZeneca lifted 3% or 446p to 14,276p after it reported positive late stage trials for its tozorakimab lung disease treatment.
NatWest also improved 2.8p to 537.8p after Deutsche Bank after lifted its price target from 730p to 840p.
Lloyds pays compensation after IT glitch
09:20 , Graeme EvansLloyds Banking Group has paid out compensation after nearly half a million people were impacted by an IT glitch exposing the personal data of customers earlier this month.
The company said up to 447,936 Lloyds, Halifax and Bank of Scotland customers saw other people’s transactions or had their data shared with others due to IT issues on 12 March.
The bank has so far paid out £139,000 in compensation to 3625 customers for distress and inconvenience linked to the incident.
It said no customers have so far been identified as suffering financial losses as a result.
FTSE 100 lower despite AstraZeneca rise, retail stocks weaken
08:49 , Graeme EvansThe FTSE 100 index has fallen back after an initial rise of 0.3% to 10,005.89.
It later stood 0.3% or 32.06 points lower at 9940.11, reflecting the latest increase for Brent crude to more than $109 a barrel.
Wall Street futures are flat following last night’s worst session since the start of the war.
The tech-focused Nasdaq Composite fell 2.4% to enter correction territory, having declined by 11% from its recent peak.
AstraZeneca, which is the London market’s most valuable stock, boosted the FTSE 100 after its shares rose 3% or 478p to 14,308p.
NatWest rose 7p to 542p after Deutsche Bank lifted its price target from 730p to 840p.
The fallers board included JD Sports Fashion, Next and Marks & Spencer as their shares dropped by about 1% in response to today’s retail sales and consumer confidence figures.
Susannah Streeter, chief investment strategist at Wealth Club, said: “With confidence weakening, costs rising due to higher freight and energy costs and spending intentions faltering, the outlook for retailers looks set to be an increasing struggle in the months to come.'”
Consumer spending outlook cools amid inflation spike
07:52 , Graeme EvansThe 0.4% drop in February retail sales volumes, following a strong performance in January, was better than City forecasts for a 0.7% decline.
However, a dip in GfK consumer confidence in March due to stagflationary concerns caused by the Iran war points to a softening in household spending.
Capital Economics said: “Overall, while retail activity held up better than most forecasters expected in February, deteriorating consumer confidence suggests real retail spending will weaken in the coming months.
“We think the combination of a rebound in CPI inflation, easing wage growth and higher unemployment in our baseline scenario will mean consumer spending growth slows from 1% in 2025 to just 0.1% this year.”
Five firms under investigation over online reviews
07:42 , Graeme EvansJust Eat, funeral firm Dignity and motor platform Autotrader are among five firms under investigation by the UK’s competition watchdog as part of its crackdown on fake and misleading online reviews.
The Competition and Markets Authority (CMA) said it had launched probes against the companies – also including customer review and feedback firm Feefo and Pasta Evangelists – to see whether consumer laws have been broken.
Since April last year, companies have been banned from certain tactics around online reviews under law, such as fake posts, paid-for reviews that are not clearly marked as incentivised, as well as for hiding negative feedback.
Sarah Cardell, chief executive of the CMA, said: “Fake reviews strike at the heart of consumer trust – with many of us worrying about misleading content when looking at reviews online.”
Oil price higher, mortgage costs continue to rise
07:36 , Graeme EvansPresident Trump’s extension of Iran peace talks has failed to cool oil prices after Brent crude this morning rose 1.3% at $109.42 a barrel.
The jump from last night’s $103 follows reports that the US is considering sending as many as 10,000 additional ground troops to the Middle East.
Deutsche Bank said: “While the delay might reduce some of the immediate escalation risk, it offers no new visibility on the path towards resolution, given Iran’s denials over talks, and while the Strait of Hormuz remains largely closed.”
Growing fears of a stagflationary shock also weighed on bond markets yesterday, with the UK 10-year gilt yield last night back near to an 18-year high at near to 5%
Rising interest rate expectations meant the Moneyfacts average mortgage rate yesterday rose to 5.58%, up from the previous day’s 5.50%.
Economy fears dent consumer confidence
07:13 , Graeme EvansConfidence in the general economy has fallen significantly as “a ripple of fear” spreads about the effects of the Middle East conflict, figures show.
GfK’s long-running consumer confidence index dropped two points to minus 21 this month amid expectations of further sharp price rises.
Expectations for the general economy over the next 12 months have slumped six points to minus 37 – eight points worse than this time last year.
Retail sales volumes dip after strong January
07:11 , Graeme EvansRetail sales volumes fell by 0.4% in February as supermarkets experienced a quieter month following strong trading in January.
The Office for National Statistics (ONS) said online and non-store retail volumes also fell in February, possibly as consumers brought forward their spending to the January sale period.
The ONS revised its estimate for January volume growth to 2%, up from 1.8% in its previous publication. It also lifted December’s figure to 0.1% from a fall of 0.4%.
Sales volumes rose by 0.7% in the three months to February, compared with the three months to November. Volumes were 3% higher than the three months to February 2025.
ONS senior statistician Hannah Finselbach said: “Retail sales rose in the three months to February, with online shops seeing strong sales and art dealers also faring well. These were partially offset by a weak period for clothing stores.”
FTSE 100 seen higher, Brent crude stays at $108
07:02 , Graeme EvansThe Brent crude oil price today stayed near $108 a barrel after President Trump last night delayed threatened strikes on Iran’s energy facilities.
The extension came as US stock markets experienced their worst session since the start of the war, with the Nasdaq Composite down 2.4% and in correction territory after a fall of 11%.
The Dow Jones Industrial Average fell 1% and the S&P 500 index lost 1.7%, although futures are higher amid hopes that the delay will enable a resolution to the conflict.
The FTSE 100 index is seen opening about 0.5% higher, having fallen by 1.3% or 134.67 points at 9972.17 in yesterday’s session.
Asia markets are mixed, while the price of gold has risen 2% to $4463 an ounce.
