London midday: FTSE maintains gains on hopes Iran war nearing an end

(Sharecast News) - London stocks were still firmly in the black by midday on Wednesday amid hopes the Iran war could be nearing an end, but oil prices were already beginning to creep higher, with Brent crude back above $100 a barrel.

The FTSE 100 was up 1.7% at 10,353.53. Brent crude was down 0.5% at $103.44 a barrel and West Texas Intermediate was 1% lower at $100.35, off earlier lows.

Sentiment was lifted after US president Donald Trump said the war with Iran could end in two to three weeks.

Speaking to reporters at the White House on Tuesday, Trump said that "Iran doesn't have to make a deal" to end the conflict, and that the US will be "leaving very soon".

"Now we're finishing the job. I think in two weeks or maybe a few days longer, we'll do the job. We want to knock out everything they've got," he said. "When we feel that they are, for a long period of time, put into the Stone Ages and they won't be able to come up with a nuclear weapon, then we'll leave."

Trump said he will deliver an "important update on Iran" in a Wednesday night prime time address at the White House.

Richard Hunter, head of markets at Interactive Investor, said: "A coiled spring was unleashed as investors saw clear light at the end of the tunnel for an end to the hostilities in the Middle East.

"With a mountain of cash reportedly on the sidelines, investors had been waiting for a trigger to put the money to work. This was provided by the US President confirming a timeline of two to three weeks before the US retreats, leaving others to restore trading through the Strait of Hormuz. At the same time, the Iranian President was said to be open to ending the war, subject to certain guarantees."

Trump also told The Telegraph on Wednesday that he was strongly considering pulling the US out of Nato after its failure to join his war on Iran. In an interview with the newspaper, the US president described the alliance as a "paper tiger" and said that removing America from the defence treaty was now "beyond reconsideration".

Meanwhile, Iran's Revolutionary Guards said they would target 18 US companies in the Middle East in retaliation for attacks on Iran, as of 1 April, according to state media.

The list includes Microsoft, Google, Apple and Boeing, and the IRCG said: "These companies should expect the destruction of their respective units in exchange for each terror act in Iran, starting from 8 PM Tehran time on Wednesday, April 1st."

On home shores, a survey showed that factory inflation rose in March at the steepest pace since 1992.

The S&P Global manufacturing purchasing managers' index fell to 51.0 from 51.7 in February, coming in below the flash estimate of 51.4. Still, it remained above the neutral 50.0 mark that separates contraction from expansion for the fifth month in a row.

The survey showed that the outbreak of war in the Middle East and closure of the strait of Hormuz had a big impact on supply chains and purchasing costs. Average vendor delivery times lengthened to the greatest extent in over four and a half years, with a quarter of panellists reporting an increase in lead times compared to only 2% reporting a decline.

A number of firms said recent events were exacerbating existing strains on supply chains, for example the Red Sea crisis and post disruptions.

Average input costs rose at the quickest pace since October 2022, as the price of energy, oil, gas and other associated costs spiked.

The seasonally-adjusted input prices index rose 15 points on the month. This was the second-steepest increase since the survey began in January 1992, beaten only by October 1992, following the UK's withdrawal from the European Exchange Rate Mechanism.

In equity markets, defence company Babcock surged after saying it had signed a six-month bridging agreement with the government to maintain continuity of Britain's naval base and nuclear submarine fleet support services under the future maritime support programme (FMSP) contract.

A new long-term agreement is in the latter stages of negotiation with the Ministry of Defence after a five-year FMSP contract ended on 31 March. Babcock said the government had signed a letter of intent alongside the bridging deal.

Babcock was also boosted by an upgrade to 'buy' from 'neutral' at Citi, while engine maker Rolls-Royce shot up after an initiation at 'overweight' by Wells Fargo.

BA and Iberia owner IAG and Wizz Air flew higher, along with easyJet and cruise operator Carnival.

Banks were also firmer, with Barclays and Lloyds among the top FTSE 100 performers.

Berkeley Group slumped after saying it plans to stop buying new land as it looks "to maximise long term shareholder value by prioritising value creation" from its existing land holdings.

The company said it does not believe it can make its required rate of return on investment in new land acquisitions due to the continuous increase in the tax and regulatory burden on residential development. It also reiterated guidance for FY26 pre-tax profit of �450m.

Berkeley was also in focus after an upgrade to 'sector perform' from 'underperform' at RBC Capital Markets. Barratt Redrow was upgraded to 'outperform' from 'sector perform'.

Rightmove tumbled following reports a �1.5bn legal claim has been filed against the company with the Competition Appeal Tribunal. Rightmove did not disclose details of the legal action, but according to reports, estate agents have accused the property portal of charging "unsustainable" fees, with some saying their charges have more than doubled in recent years.

The class action was launched by accountant Jeremy Newman on behalf of potentially hundreds of estate agents.

BP and Shell lost ground as oil prices retreated, along with Ithaca Energy, Harbour Energy and Diversified Energy.

Market Movers

FTSE 100 (UKX) 10,353.53 1.74%

FTSE 250 (MCX) 21,577.65 1.76%

techMARK (TASX) 5,714.18 1.64%

FTSE 100 - Risers

Compass Group 11 (CPG) 29.49p 42.78%

Babcock International Group (BAB) 1,225.00p 5.79%

Rolls-Royce Holdings (RR.) 1,195.50p 5.34%

Anglo American (AAL) 3,342.00p 4.94%

Antofagasta (ANTO) 3,492.00p 4.91%

St James's Place (STJ) 1,234.00p 4.72%

International Consolidated Airlines Group SA (CDI) (IAG) 366.40p 4.60%

Barclays (BARC) 406.75p 4.43%

Pershing Square Holdings Ltd NPV (PSH) 4,062.00p 4.05%

Lloyds Banking Group (LLOY) 96.12p 3.96%

FTSE 100 - Fallers

Berkeley Group Holdings (The) (BKG) 2,938.00p -14.44%

Rightmove (RMV) 404.00p -6.13%

Unilever (ULVR) 4,127.50p -1.75%

Autotrader Group (AUTO) 464.50p -1.32%

BP (BP.) 597.60p -1.24%

Shell (SHEL) 3,550.00p -0.74%

Bunzl (BNZL) 2,242.00p -0.62%

Pearson (PSON) 984.00p -0.53%

Admiral Group (ADM) 3,132.00p -0.44%

Relx plc (REL) 2,466.00p -0.40%

FTSE 250 - Risers

Raspberry PI Holdings (RPI) 481.70p 13.10%

Pan African Resources (PAF) 149.60p 7.17%

Wizz Air Holdings (WIZZ) 897.00p 5.47%

Schroder Asian Total Return Investment Company (ATR) 590.00p 5.36%

Playtech (PTEC) 351.50p 5.24%

BlackRock World Mining Trust (BRWM) 924.00p 4.88%

Endeavour Mining (EDV) 4,680.00p 4.84%

Wetherspoon (J.D.) (JDW) 585.00p 4.84%

Ceres Power Holdings (CWR) 330.40p 4.61%

Hochschild Mining (HOC) 624.00p 4.61%

FTSE 250 - Fallers

Diversified Energy Company (DI) (DEC) 1,332.00p -5.53%

Harbour Energy (HBR) 289.60p -3.34%

Ithaca Energy (ITH) 251.00p -2.52%

Barr (A.G.) (BAG) 638.00p -1.84%

Energean (ENOG) 849.50p -1.68%

Hays (HAS) 32.82p -1.50%

Pagegroup (PAGE) 134.80p -1.23%

Mony Group (MONY) 148.20p -1.07%

Vistry Group (VTY) 328.20p -0.96%

Tate & Lyle (TATE) 353.80p -0.88%