10th Mar 2026 09:17
(Alliance News) - Stock prices in London opened sharply higher on Tuesday, as a pullback in oil and gas prices sparked a relief rally across UK and European equities and bonds, easing inflation fears and prompting traders to unwind hawkish central bank bets.
The FTSE 100 index opened up 176.52 points, 1.7%, at 10,426.04. The FTSE 250 was up 431.63 points, 2.0%, at 22,529.90, and the AIM all-share was up 9.42 points, 1.2%, at 776.28.
The Cboe UK 100 was up 1.6% at 1,036.88, the Cboe UK 250 was up 1.6% at 19,793.10, and the Cboe small companies was up 0.2% at 17,860.37.
The FTSE 100 was held back compared to is European peers by energy producers, which had supported the index in recent days. BP and Shell were the biggest negative weights, down 3.2% and 2.6% respectively as oil prices fell.
Brent was quoted at USD92.56 a barrel early in London on Tuesday, down from USD100.02 late Monday.
Oil extended its decline and stocks advanced after US President Donald Trump said the war with Iran would end "very soon", although he suggested it would not conclude within the next week.
Monday's oil spike had driven a sharp repricing of expectations for the Bank of England's rate path, at one point fully pricing in a hike this year. With energy prices easing, markets have shifted again, with more than a 50% chance of a rate cut now back on the table.
Trump also warned that the US would hit Iran "TWENTY TIMES HARDER than they have been hit thus far" if it "does anything" to disrupt oil flows through the Strait of Hormuz, which remains virtually closed.
Iran meanwhile vowed on Tuesday that not one litre of oil would be exported from the Gulf while its war with the US and Israel continues, in a stark rebuke to Trump.
The Islamic republic's Revolutionary Guards Corps [IRGC] mocked Trump's apparent bid to lessen the economic impact of the war, warning: "The Iranian armed forces... will not allow the export of a single litre of oil from the region to the hostile side and its partners until further notice."
"It is we who will determine the end of the war," the IRGC, seen as close to Iran's new supreme leader Ayatollah Mojtaba Khamenei said, in a statement carried by Iranian media. "The equations and future status of the region are now in the hands of our armed forces. American forces will not end the war."
In European equities on Tuesday, the CAC 40 in Paris rose 1.7%, while the DAX 40 in Frankfurt climbed 2.1%.
In Germany, data showed the country's trade surplus unexpectedly widened around 22% to EUR21.2 billion in January from EUR17.4 billion in December, beating expectations for a decline to EUR15.2 billion. The increase was driven in part by stronger exports to the US.
However, the increase in the surplus was due to imports falling sharper than exports. Imports to Germany fell 5.9% to EUR109.2 billion in January from EUR116.1 billion in December, while German exports declined 2.2% to EUR130.5 billion from EUR133.5 billion.
In Frankfurt, Volkswagen shares were up 3.7% despite reporting that profit at Europe's largest carmaker almost halved last year, largely due to charges at subsidiary Porsche linked to a strategy shift extending the life of combustion-engine models and the impact of US tariffs.
The company disclosed plans to cut 50,000 jobs in Germany by 2030 after the profit slump. The automobile maker maintained that it was "on course" to meet its savings target of EUR6 billion by 2030.
The pound was quoted at USD1.3460 early Tuesday in London, higher compared to USD1.3396 at Monday's close. The euro stood at USD1.1650, higher against USD1.1593. Against the yen, the dollar traded at JPY157.61, down from JPY158.13.
Back in London, Persimmon was the top blue-chip performer, surging 9.1% after reporting higher earnings and completions for 2025 despite what it described as a "challenging housing market".
The York-based housebuilder said new home completions rose 12% to 11,905, while the average selling price increased 4% to GBP278,203.
Total group revenue climbed 17% to GBP3.75 billion and statutory pretax profit rose 11% to GBP397.3 million. Persimmon held its final dividend at 40p per share, taking the total payout to 60p.
The company said early 2026 trading has been strong, with the private sales rate per outlet up 9% in the first nine weeks. Forward private sales rose 9% to GBP1.25 billion as of March 1, and total forward sales increased 6% to GBP1.80 billion.
Persimmon expects between 12,000 and 12,500 completions in 2026 and anticipates underlying operating profit towards the upper end of market consensus, assuming the Iran conflict proves short-lived.
On the FTSE 250, Costain and Genuit led gains, up 9.4% and 8.7% respectively after releasing annual results.
Costain launched a GBP20 million buyback, raised its final dividend to 3.2p from 2.0p, and reported pretax profit of GBP48.2 million versus GBP36.5 million, though revenue fell to GBP1.05 billion from GBP1.25 billion. It expects operating margin to grow by over 5% in financial 2026.
Edinburgh Worldwide Investment Trust rose 2.7% after proposing a tender offer for up to 100% of its issued share capital, saying a prolonged campaign by activist investor Saba Capital Management has left it with "no alternative".
The trust said the proposal would give shareholders the option of a significant exit while retaining exposure to the potential future value of its largest holding, Elon Musk's SpaceX, which represents around 16.6% of total assets.
Chair Jonathan Simpson-Dent said the board has "exhausted every reasonable and equitable solution" in talks with Saba, arguing the activist's repeated attempts to influence the trust have caused prolonged uncertainty, costs and disruption. Shareholders have already rejected Saba's proposals to reshape the board twice in the past year.
Investors who tender would receive about 85% of proceeds in cash close to net asset value, funded through the sale of liquid assets, with the remaining roughly 15% paid once the SpaceX stake is realised. The board expects a potential liquidity event for SpaceX within the next 12 months.
Among smaller caps, Videndum plunged 55% after announcing final refinancing terms including a GBP85 million placing and open offer. The company said it expects good revenue growth in financial 2026, targeting over GBP350 million in revenue in the medium term and a mid-teen Ebitda margin.
In Asia on Tuesday, markets rebounded from Monday's steep losses. The Nikkei 225 in Tokyo closed up 2.9%, the Shanghai Composite rose 0.7%, and the Hang Seng advanced 2.2%.
In the US on Monday, Wall Street ended higher, with the Dow Jones Industrial Average up 0.5%, the S&P 500 up 0.8% and the Nasdaq Composite up 1.4%.
The yield on the US 10-year Treasury was quoted at 4.10%, narrowing from 4.13%. The yield on the US 30-year Treasury was quoted at 7.73%, narrowing from 4.74%.
Gold was quoted at USD5,193.20 an ounce, up from USD5,104.20.
Still to come on Tuesday's economic calendar are the US NFIB business optimism index, ADP employment figures and existing home sales.
By Eva Castanedo, Alliance News reporter
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ShellBPPersimmonCostain GroupGenuit GroupEdinburgh Worldwide Investment TrustVidendum Plc