LONDON, March 24, 2026, 17:13 GMT
- The FTSE 100 was last quoted at 9,953.50, up 0.60%, according to delayed Reuters/LSEG data. Earlier, the index had dropped to its lowest in three months before clawing back losses. 1
- Brent crude climbed past $104 a barrel as investors continued to price in at least two Bank of England rate hikes this year. 2
- Bellway shares slipped as the company lowered its margin outlook. S4 Capital surged following its update, but YouGov shares slid after its own news. 3
By late Tuesday, Britain’s FTSE 100 bounced into positive territory, climbing 0.6% to 9,953.50, according to delayed Reuters/LSEG figures. That move reversed its earlier drop—Reuters had initially reported the index off 0.1% at its lowest in three months. Brent crude, meanwhile, surged back above $104 a barrel, giving the blue-chips a lift. 1
It’s significant now, since that move disguised a deeper rift within the London market. The FTSE 250—which is more tied to the UK economy—remained pressured after scraping levels not seen in nearly 10 months earlier in the session. Traders, meanwhile, continued to price in at least two more Bank of England hikes this year, with the Iran conflict reigniting energy and inflation concerns. 4
The FTSE 100, despite the rebound, is still trading roughly 8% under its Feb. 26 record close of 10,846.70, according to Reuters market data and last month’s Reuters coverage of the peak. Oil giants continue to prop up the broader index, while the domestic side isn’t pulling as much weight. 1
Energy stocks got an early boost, with BP and Shell moving higher on the back of a crude rebound. Bloomberg reported gains for both as oil prices bounced after Iran pushed back against U.S. statements about ongoing productive negotiations. 5
Things turned sour on the macro front. The flash PMI—a key survey measuring business activity—slipped to 51.0 in March, down from 53.7 in February, missing every forecast in the Reuters poll. Manufacturers saw input costs surge by the most in any single month since 1992. “This is just the start,” warned Paul Dales, economist at Capital Economics. 6
Bank of England Chief Economist Huw Pill struck a cautious tone, warning that the “fog of uncertainty” shouldn’t be used as a reason to sit back on inflation. Nick Rees, who leads macro research over at Monex, pointed to April’s PMI numbers as the real measure of how persistent the energy shock will prove. 7
Bellway stood out on the downside. The housebuilder trimmed its operating margin target for fiscal 2026 to roughly 10.5%, dropping from the earlier 11% goal, and cautioned that choppy mortgage markets, fresh rate hikes, and stubborn cost inflation could weigh on housing demand. 3
S4 Capital shares surged as Martin Sorrell’s firm projected 2026 net revenue roughly matching analyst forecasts, brushing off a sluggish first quarter. AI-driven spending stayed firmer than investors had braced for. On the flip side, YouGov shares dropped—profit guidance came up short as the company ramps up investment in its Shopper unit. 8
Still, the FTSE 100’s bounce feels shaky. Reuters flagged a jump in average two-year fixed mortgage rates to 5.51%—up from 4.83% since the conflict kicked off. The data also shows 21% of residential mortgage products have vanished from the market. Adding to the pressure, the CBI reported that March retail sales posted their steepest drop since April 2020. 9
Some relief could be coming, although details remain murky. Finance minister Rachel Reeves said help with rising energy bills will be aimed at the households most in need and pledged that fiscal plans won’t be derailed. 10
Right now, traders are reacting to the oil shock before thinking about what it means at home. David Morrison at Trade Nation flagged that the market hasn’t factored in a drawn-out Strait of Hormuz closure—the crucial waterway moves roughly 20% of global oil, and Morrison called the scenario an “unexpected switch.” If crude holds above $100 and the Bank sticks to its hawkish stance, mid-caps, retailers, and housebuilders could feel more heat. 11
