London midday: FTSE extends gains on ceasefire extension hopes, after UK GDP

(Sharecast News) - London stocks had extended gains by midday on Thursday amid hopes of an extension to the US-Iran ceasefire and after the release of better-than-expected UK GDP data.

The FTSE 100 was 0.5% higher at 10,609.83, while Brent crude was up 1.5% at $96.34 a barrel.

Investors were mulling reports that the US and Iran have been in indirect talks about potentially extending the ceasefire that is due to expire on 22 April by another two weeks.

According to Bloomberg, citing a person familiar with the matter, an extension is being considered to allow more time to negotiate a peace deal, reducing the risk of renewed fighting despite an intensifying standoff over the Strait of Hormuz. It was understood that mediators are seeking technical talks to overcome the most contentious issues preventing a longer-term agreement, which include reopening Hormuz and the future of Iran's nuclear program.

The Wall Street Journal reported that the US and Iran have agreed in principle to meet but haven't decided on a date or venue, with regional mediators pushing to extend the ceasefire and arrange a second round of talks.

Patrick Munnelly at Tickmill Group said: "The current risk-on tone is being driven primarily by hopes that tensions in the Middle East may continue to ease.

"For markets, the key implication is straightforward: any further de-escalation would likely help contain oil prices, reduce uncertainty, and improve the near-term backdrop for global growth assets. The market is increasingly treating the ceasefire story as a reason to fade war-premium positioning. That has supported equities globally and improved sentiment in Asia, while also reinforcing the idea that energy upside may be more contained if negotiations continue to progress.

"For now, the market appears willing to look through geopolitical noise as long as diplomacy remains the dominant narrative."

Meanwhile, Donald Trump said on Wednesday that talks between Israel and Lebanon would begin on Thursday. In a post on Truth Social, he said he was "trying to get a little breathing room between Israel and Lebanon".

"It has been a long time since the two leaders have spoken, like 34 years," he added.

On home shores, figures from the Office for National Statistics showed the economy grew by more than expected in February, on the back of broad-based growth across the country's dominant services sector.

GDP grew by 0.5% in the three months to February, ahead of consensus for a 0.2% uplift. Growth in January was also upwardly revised to 0.3% from 0.2%.

In February, services output rose by 0.5%, while production grew by 1.2%, both of which helped offset a 2.0% slide in construction, although the rate of decline slowed from 2.8% in both January and December.

Grant Fitzner, ONS chief economist, said: "Within services, growth was driven by wholesaling, market research, hospitality and publishing, which all performed well in the three months to February.

"Meanwhile, car production recovered from the effects of the autumn cyber incident."

On a monthly basis, GDP sparked 0.5% following upwardly revised growth of 0.1% in January. It was the fastest month-on-month growth in more than two years. However, global energy prices have soared since February, reigniting inflation fears and dampening expectations for rate cuts, following the outbreak of war in the Middle East.

In equity markets, Intertek surged after Swedish private equity firm EQT confirmed it had made a takeover proposal to the inspection, product testing and certification company that was rejected.

Entain rallied as the Ladbrokes owner reaffirmed its full-year outlook following robust volume growth through the first quarter.

Supermarket giant Tesco gained as it widened guidance for 2026/27 to reflect increased uncertainty caused by the US-Israel war on Iran but posted a better-than-expected rise in full-year adjusted operating profit and hailed its highest market share for over a decade.

Morgan Sindall surged as the construction firm said full-year pre-tax profits were set to be "significantly ahead" of its previous expectations, pointing to strong trading activity and increased visibility for the remainder of the year from both its Construction and Fit Out divisions.

Mitie and Hays also gained after updates.

On the downside, easyJet flew lower as the low-cost airline said it expects to post a wider first-half loss as the war on Iran and Lebanon has sent fuel prices soaring.

Dunelm fell as the homeware retailer reported a rise in third-quarter sales but cautioned that full-year profit would be towards the lower end of consensus expectations as events in the Middle East have dented consumer confidence.

Ashmore slumped as it said assets under management fell by $1.8bn over the third quarter, driven by a negative investment performance of $0.9bn and net outflows of $0.9bn.

Flutter Entertainment was knocked lower by a downgrade to 'sell' from 'buy' at Citi, which opened a 'negative catalyst watch' on the shares and removed them from its European Focus List.

Jupiter Fund Management, Convatec, LSEG and Diageo all lost ground as they traded without entitlement to the dividend.

Market Movers

FTSE 100 (UKX) 10,609.83 0.48%

FTSE 250 (MCX) 22,848.08 0.81%

techMARK (TASX) 5,934.74 0.31%

FTSE 100 - Risers

Intertek Group (ITRK) 4,788.00p 7.86%

Entain (ENT) 623.20p 7.21%

Pearson (PSON) 1,069.00p 3.89%

Metlen Energy & Metals (MTLN) 36.60p 3.88%

Halma (HLMA) 4,340.00p 3.82%

JD Sports Fashion (JD.) 77.70p 2.75%

Standard Life (SDLF) 748.40p 2.63%

The Sage Group (SGE) 890.40p 2.44%

Rightmove (RMV) 446.70p 2.24%

LondonMetric Property (LMP) 196.50p 2.14%

FTSE 100 - Fallers

Airtel Africa (AAF) 353.60p -2.00%

Antofagasta (ANTO) 3,812.00p -1.79%

Flutter Entertainment (DI) (FLTR) 8,038.00p -1.78%

CRH (CDI) (CRH) 8,438.00p -1.52%

Convatec Group (CTEC) 237.80p -1.49%

Vodafone Group (VOD) 114.55p -1.34%

Games Workshop Group (GAW) 19,415.00p -0.59%

British American Tobacco (BATS) 4,178.00p -0.48%

Unilever (ULVR) 4,234.00p -0.46%

Shell (SHEL) 3,330.00p -0.40%

FTSE 250 - Risers

Morgan Sindall Group (MGNS) 4,930.00p 10.13%

Hays (HAS) 34.34p 6.97%

Ocado Group (OCDO) 203.50p 5.51%

Ceres Power Holdings (CWR) 423.60p 5.48%

Baltic Classifieds Group (BCG) 208.40p 3.48%

Oxford Nanopore Technologies (ONT) 119.50p 3.36%

Patria Private Equity Trust (PPET) 618.00p 3.34%

B&M European Value Retail (BME) 179.00p 3.17%

Mitie Group (MTO) 185.90p 3.17%

THG (THG) 37.72p 3.12%

FTSE 250 - Fallers

Jupiter Fund Management (JUP) 151.20p -6.44%

easyJet (EZJ) 371.80p -4.94%

Dunelm Group (DNLM) 816.00p -3.71%

Wizz Air Holdings (WIZZ) 963.50p -2.81%

Applied Nutrition (APN) 220.50p -2.65%

Quilter (QLT) 181.70p -2.36%

Rathbones Group (RAT) 2,065.00p -2.36%

Ashmore Group (ASHM) 217.00p -2.25%

Shawbrook Group (SHAW) 364.50p -1.69%

NB Private Equity Partners Ltd. (NBPE) 1,472.00p -1.34%