FTSE 100, FTSE 250 Rally as Oil Prices Retreat

The FTSE 100 has risen 1.2% on Wednesday morning, matching gains in the mid-cap FTSE 250. European markets also advanced, with Germany’s DAX up 1.6% and France’s CAC 40 rising 1.4%.

Oil prices have eased, with Brent crude falling more than 6% after U.S. President Donald Trump reportedly said negotiations aimed at ending the conflict were progressing. Iran is also said to have indicated that “non-hostile” vessels would be allowed safe passage through the Strait of Hormuz, helping ease supply concerns.

Gold prices have strengthened, with spot prices up about 2% to $4,563.

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Fresh data from the Office for National Statistics showed UK inflation holding at 3% in the month before the Middle East conflict began. Core inflation edged up to 3.2%, slightly above expectations.

Among the strongest performers in the FTSE 100 are Croda International, up 4%, Fresnillo, gaining 3.7%, and Endeavour Mining, rising 3.5%. At the bottom of the index, Reckitt Benckiser has fallen 2.4%, while Experian and Shell have each slipped 1.3%.

In corporate news, United Spirits Limited, a subsidiary of Diageo, agreed to sell its full stake in Royal Challengers Sports Private Limited to a consortium including Aditya Birla Group, The Times of India Group, Bolt Ventures and Blackstone’s BXPE arm for INR 166.6 billion.

United Utilities said its full-year underlying EPS is expected to land around 100 pence, with a change to how it measures inflation-linked debt reducing income-statement volatility.

In the FTSE 250, top riser BlackRock World Mining Trust gained 4.5%, while RS Group was the biggest faller, down 4.6%.