LONDON, April 23, 2026, 18:32 BST
The FTSE 100 slipped for a fourth session, down 0.2% to 10,457.01 on Thursday, pressured by oil prices staying above $100 a barrel and disappointment over stalled U.S.-Iran negotiations weighing on banks and consumer shares. The FTSE 250 dropped 0.9%.
This shift lands just as the benchmark slides roughly 2% for the week, almost erasing the bump after those ceasefire hopes earlier this month. Odds on a June Bank of England rate hike have jumped to 70%—up from 40% last week. That’s keeping the squeeze on borrowing costs and share prices.
New numbers out of the UK forced the issue. S&P Global’s flash PMI posted the steepest monthly surge ever in input costs—covering energy, materials, services. J.P. Morgan economist Allan Monks flagged what he called an “inflation shock,” arguing the BoE has a nearer-term headache. Reuters
It’s hitting households, too. GfK’s consumer confidence index dropped to -25 in April—the lowest reading since October 2023. “Rapid price rises, especially at the fuel pumps, are eating into budgets,” said consumer insights director Neil Bellamy. Reuters
Barclays slipped 1.5% and HSBC gave up 0.4%, both weighing on the index. Fresnillo tumbled 6.4%, tracking the slide in precious and base metals. Anglo American advanced 4.1% on the back of a report that at least three parties are circling its Australian coal assets. Domino’s Pizza surged 10% after same-store sales rose 4.5%.
Retailers lagged. Sainsbury’s shares dropped 3.4% after the company flagged that the Iran war was weighing on its outlook and could dent profits this year—mirroring Tesco’s warning last week. Bernstein analysts noted Sainsbury’s guidance came in below the consensus, undercutting the average market forecast.
Midcaps took a sharper hit. WH Smith dropped 9.2% after the company lowered its annual profit outlook and put its dividend on hold. CFO Max Izzard, speaking to analysts, cited weaker long-haul travel and a dip in spend per passenger. Peel Hunt flagged that the stock would likely be “valued with caution” for now. Reuters
Britain lagged as the broader STOXX 600 inched sideways, while European banks slid 1.2%. Still, gains from Nestle, Nokia and L’Oreal gave a lift to other pockets of the market. “Investors are trying to figure out how the war, sticky inflation, and slowing growth will divide up winners and losers,” said Janet Mui, head of market analysis at RBC Brewin Dolphin. Reuters
One more red flag for public finances: March tax revenue from motor fuels just hit its lowest since July 2023. Petrol prices are up, and that’s likely making drivers cut back at the pump. PwC UK’s Nabil Taleb flagged a “more stagflationary backdrop” emerging—think weaker growth but inflation sticking higher. Reuters
Things could reverse in a hurry. A fresh round of diplomacy or a drop in oil prices would take some weight off London shares. Still, Chris Williamson of S&P Global warns April’s PMI points to only limited growth—and that’s not likely to last unless there’s movement in the Middle East. Right now, domestic retailers, travel stocks, and the FTSE 250 stay firmly on the radar.
