London, March 10, 2026, 17:10 GMT
Britain’s FTSE 100 rebounded on Tuesday, rising 1.6% to 10,412.24, while the FTSE 250, an index of medium-sized UK-listed companies, gained 1.9% to 22,513.84. The recovery came as oil prices tumbled after U.S. President Donald Trump said the Middle East war could be nearing an end. 1
The bounce mattered because London stocks had just logged three straight days of losses, and Monday’s close left the FTSE 100 at its lowest in about five weeks. Even after Tuesday’s rise, the index remained below its record close of 10,910.55 set on Feb. 27. 2
That leaves investors focused on what oil does next and how long the Bank of England can keep rate cuts on hold. Standard Chartered and Morgan Stanley on Tuesday pushed their first BoE cut calls into the second quarter, and markets were almost certain the central bank would leave rates unchanged at its March 19 meeting. 3
Most major sectors rose, but energy stocks lagged. The sector fell 2.1%, with Shell down 1.7% and BP off 2.9%, reversing part of Monday’s oil-fuelled jump. 4
Persimmon led the blue-chip gainers after saying it expected 2026 home deliveries and operating profit near the top end of market estimates. Chief executive Dean Finch flagged strong early-year sales but warned the Iran conflict could still hit customer sentiment, while RBC Capital Markets analyst Anthony Codling said the builder was doing “the right things at the right time” and outperforming peers such as Taylor Wimpey and Vistry. 5
Domino’s Pizza Group also advanced after saying its new fried-chicken range and rising market share should help it meet 2026 profit expectations. Robinhood UK analyst Dan Lane said the company might not be at “peak pizza” yet, but still needed to turn innovation into profit growth. 6
The broader backdrop is less settled. Barclays said consumer card spending rose just 1.1% in February, and the British Retail Consortium said shop sales growth slowed to 1.1% from 2.7% in January, a sign that household demand remains fragile even as markets welcomed cheaper oil. 7
The relief rally may not hold. The U.S. Energy Information Administration said Brent crude is still expected to stay above $95 a barrel over the next two months, and Morgan Stanley said oil sustained near $120 could cut UK economic growth by 0.7 percentage point, leaving London’s rebound exposed if energy markets tighten again. 8
