London open: FTSE steady after ceasefire extension, UK inflation print

(Sharecast News) - London stocks were steady in early trade on Wednesday after the latest UK inflation print, with an extension of the US-Iran ceasefire failing to lift the mood as the US kept its blockade of the Strait of Hormuz in place and peace talks were in doubt.

At 0830 BST, the FTSE 100 was flat at 10,488.84, while Brent crude was down 0.8% at $97.66 a barrel.

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.

Emma Walll, chief investment strategist at Hargreaves Lansdown, said: "The ceasefire extension last night has not done enough to entirely quell markets this morning, with mixed reaction on the board.

"Markets will be balancing the positive news of a continued ceasefire with the other news flow - peace talks are not progressing, and the Strait of Hormuz remains closed. Bloomberg calculates that 100 fewer ships a day are getting through the Strait, compared to pre-war volumes."

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 Wall 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, precious metals miner Fresnillo and gold miner Hochschild both gained as gold prices rose.

Heavily-weighted miners Antofagasta, Rio Tinto and Anglo American also advanced in tandem with copper prices.

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 slid as it said chair Andrew Higginson plans to step down at the conclusion of the annual general meeting on 21 July. Darren Shapland, who has served as an independent non-executive director since June 2023, will become interim chair following the AGM until a permanent successor has been appointed.

Market Movers

FTSE 100 (UKX) 10,488.84 -0.09%

FTSE 250 (MCX) 23,002.96 0.14%

techMARK (TASX) 5,922.13 -0.33%

FTSE 100 - Risers

Fresnillo (FRES) 3,653.00p 1.95%

St James's Place (STJ) 1,294.00p 1.80%

Metlen Energy & Metals (MTLN) 33.65p 1.66%

Antofagasta (ANTO) 3,759.50p 1.47%

IMI (IMI) 2,890.00p 1.25%

Rio Tinto (RIO) 7,379.00p 1.19%

Babcock International Group (BAB) 1,222.00p 1.15%

Anglo American (AAL) 3,591.00p 1.01%

Halma (HLMA) 4,504.00p 0.99%

Airtel Africa (AAF) 356.00p 0.96%

FTSE 100 - Fallers

Reckitt Benckiser Group (RKT) 4,602.00p -5.69%

JD Sports Fashion (JD.) 73.06p -4.11%

Autotrader Group (AUTO) 496.00p -3.11%

Haleon (HLN) 342.80p -1.85%

Experian (EXPN) 2,842.50p -1.84%

Relx plc (REL) 2,720.00p -1.84%

Rightmove (RMV) 447.10p -1.45%

Convatec Group (CTEC) 227.80p -1.39%

Entain (ENT) 600.20p -1.25%

The Sage Group (SGE) 904.80p -0.94%

FTSE 250 - Risers

Quilter (QLT) 187.70p 3.94%

Wetherspoon (J.D.) (JDW) 624.00p 3.43%

AO World (AO.) 97.00p 3.19%

Close Brothers Group (CBG) 490.40p 2.62%

Vesuvius (VSVS) 449.00p 2.42%

Ibstock (IBST) 110.40p 2.41%

Hochschild Mining (HOC) 675.50p 2.36%

Caledonia Investments (CLDN) 373.50p 2.19%

CMC Markets (CMCX) 390.50p 2.19%

Premier Foods (PFD) 200.60p 1.88%

FTSE 250 - Fallers

Bridgepoint Group (Reg S) (BPT) 269.60p -4.26%

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

C&C Group (CDI) (CCR) 120.40p -1.79%

JPMorgan India Growth & Income (JIGI) 880.00p -1.46%

Ruffer Investment Company Ltd Red PTG Pref Shares (RICA) 307.00p -1.45%

SSP Group (SSPG) 190.00p -1.35%

ICG Enterprise Trust (ICGT) 1,346.00p -1.32%

Personal Assets Trust (PNL) 532.00p -1.30%

Spire Healthcare Group (SPI) 161.60p -1.22%

Marshalls (MSLH) 140.40p -1.17%