London close: Stocks rebound as oil prices fall back

10th Mar 2026 15:59

(Sharecast News) - London stocks rose on Tuesday as oil prices retreated sharply and investor sentiment improved after US president Donald Trump signalled that the war with Iran could be nearing an end.

Axel Rudolph, chief technical analyst at IG, noted that "the over 10% drop in oil and European gas prices on hopes that the war in Iran may soon end provoked a surge in global stock indices."

The FTSE 100 climbed 1.59% to 10,412.24, while the FTSE 250 advanced 1.78% to 22,492.27.

Sterling edged 0.31% higher against the dollar to $1.3478, but slipped 0.04% on the euro to €1.1555.

AJ Bell head of markets Dan Coatsworth said "the FTSE 100 regained all of its losses from a fraught start to the week by [the] close on Tuesday amid hopes of a near-term resolution to the Iran conflict."

Energy markets were a central driver of sentiment after oil prices plunged from the levels reached earlier in the conflict.

Brent crude futures were last down 13.8% on ICE to $85.30 a barrel, and the NYMEX quote for West Texas Intermediate dropped 14.15% to $81.36, reversing part of the surge that had pushed prices above $100 over the weekend for the first time since Russia's invasion of Ukraine in February 2022.

Rudolph said "WTI crude dropped below $85 a barrel on Tuesday after spiking close to $120 the previous day, as president Donald Trump signalled the war with Iran could end sooner than expected, pledged naval escorts for tankers in the Strait of Hormuz and the G7 said it stood ready to release strategic oil reserves, easing supply fears."

He added that "European natural gas prices also retreated, by around 15% from Monday's three-year high, while precious metal prices advanced."

Prices eased after Trump suggested the conflict could soon wind down.

In a telephone interview with CBS News on Monday, he said "I think the war is very complete, pretty much. [Iran has] no navy, no communications, they've got no air force.

"Their missiles are down to a scatter. Their drones are being blown up all over the place, including their manufacturing of drones."

Trump added that Iran has "nothing left in a military sense".

The US president also said he would temporarily lift some sanctions on oil-producing countries following talks with Russian president Vladimir Putin, saying "we have sanctions on some countries. We're going to take those sanctions off till this straightens out," though he did not specify which measures would be eased.

UK retail sales growth slows in February

Economic data released during the session showed UK retail sales growth slowed sharply in February as poor weather dampened consumer activity.

Total retail sales rose just 1.1% year-on-year, down from 2.7% in January and below the 12-month average of 2.3%, according to the BRC-KPMG Retail Sales Monitor.

Food sales growth eased to 2.9% from 3.8%, while non-food sales slipped 0.4% year-on-year after rising 1.7% the previous month.

British Retail Consortium chief executive Helen Dickinson said "February's grey, wet weather hit retail sales hard", though Valentine's Day provided a bright spot with stronger sales of jewellery, watches and perfume.

Elsewhere, Germany's trade surplus widened to a 17-month high in January as imports fell more sharply than exports.

According to the Federal Statistical Office, exports declined 2.3% month-on-month to €130.5bn, though they were still 0.6% higher than a year earlier, while imports dropped 5.9% to €109.2bn.

The foreign trade balance rose to €21.2bn from €17.4bn in December, the highest surplus since August 2024.

Pershing Square, travel stocks among the gainers

In equities, Pershing Square Holdings surged 5.69% after Bill Ackman filed to list Pershing Square and Fund on the New York Stock Exchange.

Coatsworth said "shares in Bill Ackman's UK-listed Pershing Square Holdings were in demand as the activist investor announced plans for a combined US IPO of the hedge fund and of a new and separate fund - Pershing Square USA.

"The aim is to build a modern-day Berkshire Hathaway with Ackman looking to take on the herculean task of emulating Warren Buffett."

Housebuilder Persimmon jumped 4.54% after saying underlying operating profit for 2026 was expected to come in towards the upper end of consensus following a rise in full-year profit and completions.

Airlines rebounded as fuel price pressures eased, with IAG rising 5.17% and Wizz Air gaining 5.65%.

Spirax Group climbed 3.61% after reporting improved annual earnings and forecasting further organic growth this year despite difficult market conditions.

Financial stocks were also strong performers.

TBC Bank Group rose 6.42%, Jupiter Fund Management gained 5.45% and JPMorgan European Growth & Income added 4.87%.

Admiral Group advanced 1.28% after UBS upgraded the insurer to 'buy' from 'neutral', citing the likelihood of more favourable UK motor pricing and stronger earnings growth beyond its core motor segment.

Construction and industrial names rallied as input cost concerns eased.

RHI Magnesita climbed 6.46%, Morgan Advanced Materials gained 4.24% and Vesuvius rose 4.74%, while Elementis and Johnson Matthey advanced 4.8% and 2.91% respectively.

Genuit Group jumped 5.42% after reporting higher full-year revenue and profit despite subdued market conditions.

Miners Anglo American and Antofagasta rose 6.56% and 5.98% respectively as copper prices strengthened, while Rolls-Royce added 5.85%.

Rudolph said "renewed optimism on the back of falling oil prices helped global stock indices recover, most strongly in Asia and Europe where gains of between 2% and 6% were seen."

Elsewhere, Grafton Group gained 1.37% after agreeing to acquire Irish timber frame manufacturer Cygnum Holdings for an undisclosed sum as it expands into modular construction.

Pennon Group rose 1.77% after reporting that underlying earnings had grown 55% year-on-year in the six months to 9 March despite weather-related costs and higher regulatory expenses.

On the downside, energy stocks moved lower as oil prices fell, with BP down 2.05% and Shell off 0.83%.

Diversified Energy slid 3.6%, Harbour Energy lost 3.08% and Ithaca Energy dropped 7.05%.

Rotork tumbled 13.41% after warning that upstream and midstream markets were expected to remain subdued despite reporting higher full-year revenue and profit.

Defence contractor BAE Systems was also slightly weaker, slipping 0.44%.

As Coatsworth noted, "inevitably, as oil prices retreated, BP and Shell were among the fallers."

Reporting by Josh White for Sharecast.com.

Market Movers

FTSE 100 (UKX) 10,412.24 1.59%

FTSE 250 (MCX) 22,492.27 1.78%

techMARK (TASX) 5,870.07 1.07%

FTSE 100 - Risers

Fresnillo (FRES) 3,792.00p 7.06%

Anglo American (AAL) 3,332.00p 6.56%

Antofagasta (ANTO) 3,881.00p 5.98%

Rolls-Royce Holdings (RR.) 1,311.00p 5.85%

Smurfit Westrock (DI) (SWR) 3,190.00p 5.73%

Pershing Square Holdings Ltd NPV (PSH) 4,232.00p 5.69%

International Consolidated Airlines Group SA (CDI) (IAG) 376.10p 5.17%

Barclays (BARC) 417.80p 5.13%

Persimmon (PSN) 1,279.00p 4.54%

SEGRO (SGRO) 755.20p 4.19%

FTSE 100 - Fallers

Flutter Entertainment (DI) (FLTR) 7,946.00p -2.17%

BP (BP.) 499.55p -2.05%

Smith & Nephew (SN.) 1,232.00p -1.60%

London Stock Exchange Group (LSEG) 8,550.00p -1.29%

Compass Group (CPG) 2,260.00p -1.01%

Shell (SHEL) 3,180.50p -0.83%

Relx plc (REL) 2,626.00p -0.76%

Rentokil Initial (RTO) 456.00p -0.63%

Sainsbury (J) (SBRY) 334.80p -0.48%

Barratt Redrow (BTRW) 303.20p -0.46%

FTSE 250 - Risers

RHI Magnesita N.V. (DI) (RHIM) 2,555.00p 6.46%

TBC Bank Group (TBCG) 4,475.00p 6.42%

BlackRock World Mining Trust (BRWM) 947.00p 6.17%

Trustpilot Group (TRST) 162.10p 5.88%

Oxford Biomedica (OXB) 651.00p 5.85%

Bluefield Solar Income Fund Limited (BSIF) 81.50p 5.71%

Wizz Air Holdings (WIZZ) 953.00p 5.65%

Jupiter Fund Management (JUP) 189.60p 5.45%

Genuit Group (GEN) 321.00p 5.42%

Hochschild Mining (HOC) 700.00p 5.34%

FTSE 250 - Fallers

Rotork (ROR) 317.60p -13.41%

Ithaca Energy (ITH) 237.50p -7.05%

Diversified Energy Company (DI) (DEC) 1,070.00p -3.60%

ITV (ITV) 82.25p -3.46%

Harbour Energy (HBR) 283.40p -3.08%

Energean (ENOG) 889.00p -2.47%

Bytes Technology Group (BYIT) 309.00p -2.03%

Vistry Group (VTY) 414.70p -1.71%

WPP (WPP) 256.20p -1.46%

Gamma Communications (GAMA) 870.00p -1.25%