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UK stocks fall as optimism over quick Middle East ceasefire fades
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UK stocks fall as optimism over quick Middle East ceasefire fades
Apr 2, 2026 4:05 AM

(For a Reuters live blog on U.S., UK and European stock

markets, click or type LIVE/ in a news window)

April 2 (Reuters) - London's main indexes fell on

Thursday, snapping three straight days of gains, as market

sentiment weakened after U.S. President Donald Trump vowed more

aggressive strikes on Iran.

Trump had earlier signalled he wanted a quick end to the

war, raising hopes of de-escalation, but his latest remarks have

spurred a risk-off mood across financial markets.

The blue-chip FTSE 100 index fell 0.2% by 1149 GMT,

while the midcap FTSE 250 was down 0.9%. Both indexes

were still on track to end the holiday-shortened week higher.

* The energy index rose 3.6% after oil jumped

more than 7% following Trump's comments, stoking investor fears

about sustained supply disruptions.

* Oil majors BP and Shell rose 4.5% and 3.3%

respectively, ranking among the top gainers on the benchmark

index.

* Precious metal miners fell 5.1% and were

the biggest drag on the index, after gold prices slid following

the comments.

* Markets are pricing in more than two quarter-point cuts by

the Bank of England by the end of the year, according to data

compiled by LSEG.

* British business confidence fell from +2.8 on the eve of

the conflict to -1.1 by the end of the 10-week survey period on

March 16, according to a survey of accountants that echoed

similar concerns from other groups since the start of the

U.S.-Israeli attacks.

* British companies expect to raise prices more quickly in

the coming 12 months as they respond to a surge in energy prices

due to the Iran war, a Bank of England survey showed.

* Markets will be closed for Good Friday and Easter Monday.

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