London, March 10, 2026, 17:10 GMT
London’s FTSE 100 clawed back ground Tuesday, advancing 1.6% to close at 10,412.24. The FTSE 250 tracked higher too, up 1.9% at 22,513.84. Oil prices slumped sharply after U.S. President Donald Trump suggested the Middle East war might soon conclude.
That rebound followed three consecutive losing sessions for London shares, with Monday’s finish dragging the FTSE 100 down to a roughly five-week low. Still, despite the uptick Tuesday, the index was stuck under its Feb. 27 record close of 10,910.55.
So now, the spotlight shifts to oil’s next move and just how much longer the Bank of England can sit tight on rates. On Tuesday, both Standard Chartered and Morgan Stanley delayed their forecasts for a BoE rate cut to the second quarter. Traders, for their part, were pricing in near certainty that the central bank would keep rates steady at its March 19 meeting.
Energy names struggled, slipping 2.1%. Shell dropped 1.7%, BP slid 2.9%—giving back some of Monday’s oil-driven gains. Most other sectors finished higher.
Persimmon jumped to the top of the FTSE 100 after projecting 2026 home completions and operating profit at the upper end of analyst forecasts. CEO Dean Finch pointed to brisk sales early in the year, though he cautioned that the Iran conflict remains a potential drag on buyer confidence. RBC Capital Markets’ Anthony Codling argued the company is “doing the right things at the right time,” putting it ahead of rivals Taylor Wimpey and Vistry. Reuters
Shares in Domino’s Pizza Group climbed, with the company pointing to gains from its newly launched fried-chicken line and a bump in market share as reasons to stick to its 2026 profit outlook. Still, Robinhood UK analyst Dan Lane argued Domino’s hasn’t hit “peak pizza” but cautioned it must translate new products into earnings growth. Reuters
The picture outside markets looks choppy. Barclays reported a 1.1% rise in consumer card spending for February, while the British Retail Consortium flagged shop sales growth slowing to 1.1%—down sharply from 2.7% in January. That’s a red flag for household demand, which remains shaky even as cheaper oil gets a warm reception from markets.
Any lift may prove fragile. Brent crude should stay above $95 a barrel through the next two months, according to the U.S. Energy Information Administration, while Morgan Stanley warns that oil holding near $120 would shave 0.7 percentage point off UK growth. That leaves London’s bounce vulnerable if energy supplies tighten again.
