London midday: FTSE flat as ceasefire extension fails to lift mood

(Sharecast News) - London stocks were still flat by midday on Wednesday after the latest UK inflation print, as an extension of the US-Iran ceasefire failed to lift the mood, with the US blockade of the Strait of Hormuz still in place and peace talks in limbo.

The FTSE 100 was steady at 10,494.3, while Brent crude was up 0.6% at $99.03 a barrel following reports Iran attacked three ships in the Strait of Hormuz, with its Revolutionary Guard seizing two of them.

On Tuesday, Trump said the US would extend the ceasefire with Iran while continuing the blockade of Iranian ports.

The two-week ceasefire had been due to expire on Wednesday. However, in a post on Truth Social, Trump said: "Based on the fact that the Government of Iran is seriously fractured, not unexpectedly so and, upon the request of Field Marshal Asim Munir, and Prime Minister Shehbaz Sharif, of Pakistan, we have been asked to hold our Attack on the Country of Iran until such time as their leaders and representatives can come up with a unified proposal.

"I have therefore directed our Military to continue the Blockade and, in all other respects, remain ready and able, and will therefore extend the Ceasefire until such time as their proposal is submitted, and discussions are concluded, one way or the other."

Meanwhile, the White House confirmed on Tuesday night that vice president JD Vance's trip to Islamabad for a second round of peace talks has been cancelled.

David Morrison, senior market analyst at Trade Nation, said investors are weighing the implications of Trump extending the ceasefire with Iran.

"On one hand, this could be viewed positively, giving another opportunity for talks to take place," he said. "But the delay also raises concerns that the conflict could drag on despite continued diplomatic efforts. The Trump administration should be worried that Tehran spurned the talks, even as the President spins it as a sign of Iran's fractured leadership. Instead, it could indicate the regime's hardened intent to carry on the war.

"Meanwhile, the US continues to blockade Iranian ports around the Strait of Hormuz. Yet the Strait remains impassable due to Iranian attacks on shipping attempting to sail through this chokehold."

On home shores, figures from the Office for National Statistics showed that inflation rose in March as the war in Iran caused global energy prices to soar.

The consumer price index was 3.3% in the 12 months to March, up from 3% in February and in line with consensus.

Food and non-alcoholic drink prices jumped 3.7%. However, motor fuel prices made the largest upward contribution, spiking 4.9% compared to a fall of 4.6% in February. It was the largest increase for more than three years.

War in the Middle East has caused global energy prices to surge, with refineries in the region either shuttered or damaged and the vital Strait of Hormuz too dangerous to pass. The US Navy has also started its own blockade of the waterway, in a bid to halt Iranian oil exports.

The average price of petrol rose by 8.6p per litre between February and March, to 140.2p, the highest since August 2024. Diesel prices were also sharply higher.

Overall transport prices jumped 4.7% in March, up from 2.4% in February, with airfares 10% stronger - the largest hike between February and March since 2016. The upward effect came almost entirely from long haul flights. However, the ONS noted that all prices were collected before the outbreak of war in the Middle East.

Stripping out volatile energy, food, alcohol and tobacco prices, core inflation rose 3.3%, down from 3.4%.

The ONS also published producer prices data on Wednesday, which showed the impact of higher energy prices. The costs of raw materials prices spiked 5.4% in the year to March, up from a revised 0.7% in February, while factory gate prices were 2.6% higher, against a rise of 1.8% a month previously.

Grant Fitzner, ONS chief executive, confirmed the rises were driven by higher crude oil and petrol prices.

Emma Walll, chief investment strategist at Hargreaves Lansdown, said: "While the increase in prices will be felt keenly at the petrol pump, it is highly unlikely a single inflation print will be enough to sway policy makers into moving the Bank of England base rate next week - though market watchers will be eagle eyed to see the vote split, as members of the MPC will likely be divided.

"Inflation is likely to remain elevated in April too, and markets are now pricing in one rate rise later this year. But our house view is that rates are held through the conflict - returning to the expected rate cutting cycle later than forecast just a couple of months ago, but on path to neutral next year."

In equity markets, Bunzl surged as it reiterated full-year guidance despite an uncertain geopolitical and macroeconomic environment after a rise in first quarter revenues.

Croda rose as it backed its full-year outlook after the speciality chemicals group upped prices in response to rising cost inflation.

Updating on first-quarter trading, Croda said group sales had edged up 1% on a constant currency basis, to �431m, driven by a 4% uplift in consumer care, its largest division.

Quilter rallied as it reported record quarterly core net inflows, exceeding �3bn for the first time.

On the downside, consumer goods giant Reckitt Benckiser slumped as first-quarter like-for-like revenue for its core business missed expectations.

JD Sports fell as it said chair Andrew Higginson plans to step down at the conclusion of the annual general meeting on 21 July after four years in the job.

Market Movers

FTSE 100 (UKX) 10,494.31 -0.04%

FTSE 250 (MCX) 22,997.40 0.11%

techMARK (TASX) 5,936.14 -0.10%

FTSE 100 - Risers

Bunzl (BNZL) 2,432.00p 3.09%

BP (BP.) 574.00p 1.90%

St James's Place (STJ) 1,297.50p 1.72%

SSE (SSE) 2,621.50p 1.37%

Rio Tinto (RIO) 7,392.00p 1.36%

Associated British Foods (ABF) 1,855.00p 1.12%

M&G (MNG) 294.40p 1.10%

Croda International (CRDA) 3,030.00p 1.07%

National Grid (NG.) 1,270.80p 1.05%

Fresnillo (FRES) 3,634.00p 1.03%

FTSE 100 - Fallers

Reckitt Benckiser Group (RKT) 4,661.00p -5.02%

Melrose Industries (MRO) 509.60p -4.13%

JD Sports Fashion (JD.) 74.14p -3.17%

Rolls-Royce Holdings (RR.) 1,152.20p -2.32%

Haleon (HLN) 344.70p -2.16%

Convatec Group (CTEC) 226.40p -1.99%

International Consolidated Airlines Group SA (CDI) (IAG) 384.90p -1.86%

Autotrader Group (AUTO) 503.00p -1.72%

Diageo (DGE) 1,505.60p -1.44%

Kingfisher (KGF) 297.70p -1.10%

FTSE 250 - Risers

W.A.G Payment Solutions (EWG) 120.20p 4.52%

Quilter (QLT) 189.10p 4.49%

Ithaca Energy (ITH) 263.30p 3.58%

Hays (HAS) 34.54p 3.55%

Harbour Energy (HBR) 283.80p 2.53%

Ceres Power Holdings (CWR) 443.40p 2.36%

Close Brothers Group (CBG) 489.80p 2.04%

Aston Martin Lagonda Global Holdings (AML) 46.38p 1.95%

Target Healthcare Reit Ltd (THRL) 106.00p 1.92%

Victrex plc (VCT) 656.00p 1.86%

FTSE 250 - Fallers

SSP Group (SSPG) 185.20p -3.99%

Marshalls (MSLH) 141.80p -2.81%

Plus500 Ltd (DI) (PLUS) 4,400.00p -2.40%

Oxford Nanopore Technologies (ONT) 121.60p -2.25%

NB Private Equity Partners Ltd. (NBPE) 1,410.00p -1.95%

WH Smith (SMWH) 628.00p -1.88%

Hikma Pharmaceuticals (HIK) 1,330.50p -1.34%

Shawbrook Group (SHAW) 369.75p -1.33%

IntegraFin Holding (IHP) 343.50p -1.29%

CMC Markets (CMCX) 383.50p -1.29%