The FTSE 100 struggled on Thursday, closing down 161.71 points, or 1.6%, at 10,276.95, as investor enthusiasm over a potential US-Iran peace deal waned. The FTSE 250 ended slightly higher, up 50.30 points, or 0.2%, at 22,882.72, while the AIM All-Share rose 9.70 points, or 1.2%, to 818.32.
Oil Prices Retreat on Peace Hopes
Brent crude for July delivery fell to $97.76 per barrel on Thursday, down from $102.12 at Wednesday's London close. The decline came amid continued optimism for a peace agreement between the US and Iran. US President Donald Trump indicated that a deal could be near after positive talks, with Iran stating it would relay its latest position to mediator Pakistan.
However, with no fresh developments to sustain the rally, equity markets took a breather. European markets followed London lower, with the CAC 40 in Paris ending down 1.2% and the DAX 40 in Frankfurt falling 1.0%.
Profit-Taking and Caution
Susannah Streeter, chief investment strategist at Wealth Club, commented: "The wild streak of enthusiasm which hit markets amid hopes for a major de-escalation in the Iran conflict is tempering. There's a realisation that there are more hurdles to climb for a longer-term resolution to be agreed, even though Iran is reported to be studying a US peace proposal."
David Morrison, senior market analyst at Trade Nation, added: "Having rallied strongly over the past two sessions, bouncing back from their sharp sell-off at the beginning of the week, there's been some evidence of profit-taking today. Investors appear to be expressing some caution and taking some risk off the table as yesterday's euphoria on hopes of a quick end to the US/Iran war start to fade."
Mixed Performance in New York
In the US, markets were mixed. The Dow Jones Industrial Average was down 0.2%, while the S&P 500 rose 0.1% and the Nasdaq Composite gained 0.5%. The yield on the US 10-year Treasury widened to 4.36% from 4.35%, and the 30-year yield rose to 4.95% from 4.94%.
The pound strengthened to $1.3616 from $1.3602, while sterling was little changed against the euro at €1.1567. The euro traded higher against the dollar at $1.1768, and the dollar rose against the yen to ¥156.41.
US Jobs Report in Focus
Friday brings the closely watched US jobs report. Goldman Sachs estimates nonfarm payrolls rose by 70,000 in March, slightly above the consensus of 65,000. The broker expects a 32,000 boost from the end of worker strikes and a moderate tailwind from better weather, but a 5,000 decline in government payrolls. The unemployment rate is expected to remain unchanged at 4.4%.
London Market Movers
On the FTSE 100, JD Sports Fashion topped the risers, up 7.4%, as improved free cash flow offset a struggling sales performance. Deutsche Bank called it a "mixed bag" but noted a welcome free cash beat and a new capital return framework.
Hiscox rose 5.4% after reporting a positive outlook for 2026 and accelerating growth in its retail business. Chief executive Aki Hussain said: "Hiscox is building on strong momentum delivered in 2025, through capturing diverse, high-quality growth opportunities."
Fresnillo and Endeavour Mining gained 5.8% and 5.1% respectively, lifted by a rising gold price, which traded at $4,742.97 per ounce, up from $4,692.73.
Weighing on the index, Relx fell 6.2% as it traded ex-dividend and after a Morgan Stanley downgrade. Shell dropped 2.9% amid lower oil prices and as investors weighed first-quarter numbers. Shell reported profit well ahead of consensus but trimmed its quarterly buyback to $3 billion from $3.5 billion, while raising its dividend by 5%.
On the FTSE 250, Helios Towers surged 14% after raising its 2026 adjusted earnings guidance, citing a "significant" tenancy pipeline and "exceptionally strong" demand for data in Africa and the Middle East.
Biggest Risers and Fallers
The biggest risers on the FTSE 100 were JD Sports Fashion, up 5.00p at 73.00p; Fresnillo, up 201.00p at 3,663.00p; Hiscox, up 84.00p at 1,634.00p; Endeavour Mining, up 238.00p at 4,916.00p; and Autotrader, up 20.60p at 520.80p.
The biggest fallers were Relx, down 163.00p at 2,462.00p; Admiral, down 181.00p at 3,165.00p; Centrica, down 10.80p at 198.70p; BAE Systems, down 97.70p at 1,991.80p; and Smiths Group, down 78.00p at 2,522.00p.
Friday's Outlook
Friday's global economic calendar includes the US jobs report, Canada unemployment figures, German trade and industrial production data, and the Halifax house price index in the UK. The local corporate calendar features full-year results from Airtel Africa.
