A tumultuous month for financial markets is ending with the FTSE 100 index higher for a second successive session.
Meanwhile, new figures showed that Britain’s economy expanded by 1.4% in 2025 after barely growing at the end of last year.
Hellmann’s maker Unilever has said it is in late-stage talks to merge its food business with a US rival.
FTSE 100 Live Tuesday
- Unilever on brink of foods merger
- GDP revision lifts 2025 figure
- Lloyds reviews car finance ruling
Market update: FTSE 100 maintains progress, Raspberry Pi up 24%
10:10 , Graeme EvansA tumultuous month for financial markets is ending with the FTSE 100 index up by another 0.6% and Wall Street on course for a stronger session.
The upturn follows a report that President Trump is considering an end to the US military campaign against Iran.
However, with the Strait of Hormuz still largely closed to shipping the price of the May contract for Brent crude oil stayed near to $113 a barrel.
The FTSE 100 index followed yesterday’s market-leading 1.6% advance by lifting 67.24 points to 10,195.20.
London’s top flight is down by more than 6% from its peak at the end of February, but still more than 2% higher than where it started the year.
That’s in contrast to a decline of 7.3% for the S&P 500 so far this year and 10.5% for the tech-focused Nasdaq Composite.
The S&P 500, which is on the brink of correction territory following a 9.4% reverse from its January record, is seen opening about 1% higher later today.
In the FTSE 100, stocks up by 2% or more included London Stock Exchange, Tesco and Reckitt Benckiser.
Lloyds Banking Group rose 0.8p to 92.1p as it said last night’s FCA motor finance redress scheme will require careful analysis after it differed from proposals laid out in October.
Unilever edged 35.5p higher to 4564p as the consumer goods giant said it was on brink of a deal to merge its foods division with US-based McCormick & Company.
Outside the FTSE 100 index, the confident outlook of Raspberry Pi in annual results helped its share price to jump 24% or 71.4p to 363.6p.
A reassuring trading update meant Pets at Home shares rose 8.2p to 186.6p but magazine publisher Future slid 26% or 103.8p to 285.2p after it warned that it now expects second half revenues to decline by a low single-digit percentage.
Ofgem price cap seen 18% higher
09:23 , Graeme EvansHousehold energy bills could increase by £288 a year in July as soaring wholesale costs caused by the Iran war are set to push up Ofgem’s price cap.
Cornwall Insight said its prediction for the watchdog’s price cap from July to September now stands at £1,929 for a typical dual fuel household – an increase of £288 or 18% on April’s cap.
However, this marks a slight fall from its forecast earlier this month after a “partial steadying” in wholesale markets on hopes of a ceasefire in the Middle East conflict.
Costs spiral for small business owners
09:18 , Graeme EvansSmall business owners say that the hike in energy prices following the war in the Middle East will cost them an average of £2,273.90 a month.
A poll carried out by Novuna Business Finance over the past 48 hours finds that smaller companies, which are not protected by the cap on domestic bills, will be hit hard by the fallout from the conflict in Iran and the Gulf.
Respondents said rising energy prices means they will pay an average of £753.56 more each month for transport, travel and logistics, £785.92 more each month to run machinery and equipment essential to business operations, and £734.42 more each month to heat their workplace.
FTSE 100 up 0.7%, extends run of outperformance
08:59 , Graeme EvansThe FTSE 100 index has advanced by another 70.32 points to 10,198.28, a rise of 0.7%.
Stocks up by 2% or more included London Stock Exchange, Tesco and Reckitt Benckiser.
The FTSE 100 index is down by more than 6% from its peak at the end of February, but thanks to the support of energy, commodity and other defensive stocks it is still more than 2% higher than where it started the year.
That’s in contrast to this year’s decline of 7.3% for the S&P 500 index and10.5% for the tech-focused Nasdaq Composite.
Richard Hunter, head of markets at Interactive Investor, said: “Another highly cautious but positive open suggests that the index remains the source of some solace for investors, although until the shackles of the conflict are removed a sustainable recovery remains off the table.”
FTSE 100 opens higher, Lloyds shares steady
08:08 , Graeme EvansThe FTSE 100 index has opened in positive territory, up 27.02 points to 10,154.98.
The better-than-expected start follows a rise of 1.6% on Monday.
Lloyds Banking Group opened broadly flat at 91.8p after telling investors that it is assessing the impact of last night’s FCA ruling on motor finance redress.
Unilever rose 23.5p to 4552p after it disclosed it was close to finalising a deal for its foods business.
Elsewhere, the shares of digital publisher Future fell 20% or 79.6p to 309.4p after it warned that it now expects second half revenues to decline by a low single-digit percentage.
Structural steel business Severfield fell 6% or 1.4p to 22.4p as it forecast current year underlying profits in the range of £12 million-£15 million.
It said the guidance reflected “a cautious view of the year ahead based on later project start dates, the current tight pricing environment, macroeconomic conditions, and current geopolitical uncertainty.”
Unilever nears foods tie-up with McCormick
07:36 , Graeme EvansUnilever today said a deal to combine its Knorr-to-Hellmann’s foods business with US-based McCormick & Company could be completed as soon as today.
McCormick makes Cholula hot sauce and French’s mustard among its range of spices and seasoning brands.
If a transaction were to proceed, it said the terms were likely to include an upfront cash component of about $15.7 billion and the majority of the consideration in McCormick equity.
Should the deal complete, it is expected that Unilever and its shareholders would hold 65% of the combined company. A combination would exclude parts of Unilever’s foods portfolio such as its business in India
Unilever said work remains ongoing to agree and finalise a transaction and it is possible that an agreement could be concluded today, although there can be no certainty that a transaction will be agreed.
House price growth surged in March - Nationwide
07:24 , Graeme EvansAnnual house price growth picked up to 2.2% in March, Nationwide said today.
The building society’s figure, which compares with 1% in February, follows a 0.9% month-on-month increase to an average £277,186.
Nationwide chief economist Robert Gardner said: “The pickup in house price growth suggests that the market had regained momentum after the slowdown recorded around the turn of the year.
“However, the sharp rise in global energy prices in response to developments in the Middle East represents a significant shock to the global economy, clouding the outlook.”
UK economy grew by 1.4% in 2025 - ONS
07:15 , Graeme EvansThe UK economy grew by 1.4% in 2025 after the Office for National Statistics today revised its original estimate of 1.3%.
The change follows unrevised growth of 0.1% in the final quarter of the year. The UK grew by 1.1% in 2024.
Liz McKeown, ONS director of economic statistics, said: “Our latest figures show GDP was unrevised in the last quarter of the year, with the economy growing a little.
“Services showed no growth, while production grew strongly, partially offset by a weak quarter from construction. Annual growth for the whole of 2025 was, however, revised up slightly.
“Meanwhile, the household savings ratio increased and remains high by historic standards.”
Capital Economics said: “The confirmation that real GDP grew by just 0.1% quarter-on-quarter in Q4 of last year is a reminder that the economic backdrop is much weaker now than the last time energy prices surged in 2022.”
Lloyds responds to FCA motor finance ruling
07:10 , Graeme EvansLloyds Banking Group today said the FCA’s motor finance redress scheme will require careful analysis after it differed from proposals laid out in October.
The FCA said after last night’s market close that compensation payouts are due on around 12.1 million unfair motor finance deals, at an average of £829 each.
However, the final redress scheme will mean around two million fewer deals are eligible for compensation.
The regulator is expecting the total amount of redress paid under its scheme to be about £7.5 billion, lower than the previous £8.2 billion estimate, and based on about 75% of eligible consumers making a claim.
Lloyds said: “The details of the final scheme differ from the scheme as laid out in October 2025 and require careful analysis.
“Accordingly, the group is assessing the implications and impact of the final rules. The group will update the market as and when appropriate.”
Index set for steady start, Brent crude at $113
07:03 , Graeme EvansThe FTSE 100 index is set to open about 0.1% lower, having risen 1.6% or 160.61 points at 10,127.96 during Monday’s commodities-fuelled session.
The decline follows a mixed showing on Wall Street after the Dow Jones Industrial Average rose 0.1% but the S&P 500 index fell 0.4% and the Nasdaq lost 0.7%.
In Asia, the Nikkei 225 is down 0.8% and the Hang Seng index slightly lower.
Brent Crude is this morning at $113 a barrel, which compares with more than $116 at one point yesterday. It is on track for a record monthly surge.
The shares of Lloyds Banking Group and Close Brothers will be in focus after the Financial Conduct Authority cut £2 billion from the industry’s expected motor finance compensation bill.
Payouts are due on around 12.1 million unfair motor finance deals, at an average of £829 each, the FCA said.
