March 24 (Reuters) - The FTSE 100 ticked lower in choppy trading on Tuesday, as mixed signals from the Middle East conflict lifted oil prices and curbed risk appetite, while investors also priced in
FTSE 100 gains as energy stocks rally on Middle East uncertainty
By Tharuniyaa Lakshmi
March 24 (Reuters) - The FTSE 100 closed higher on Tuesday, lifted by energy stocks as investors weighed mixed signals from the Middle East conflict.
Market Performance and Key Drivers
The blue-chip FTSE 100 rose 0.7%, while the mid-cap FTSE 250 fell 0.5%. European markets tracked a rebound on Wall Street, which recovered after a shaky open.
Energy Sector Surge
UK energy stocks rose 3.2%, providing the biggest boost as oil prices climbed back above $100 a barrel after Iran denied U.S. President Donald Trump's claim of "productive talks" with Tehran. [O/R]
Expert Commentary
"The UK's outsized exposure to the energy sector was good news again today and gave the FTSE 100 fuel to pull ahead of the market pack," said AJ Bell head of markets Dan Coatsworth.
Bank of England Rate Outlook
Markets now price in almost three quarter-point Bank of England rate hikes this year, a sharp shift from the cuts expected before the conflict. Some economists say weak growth and a soft labour market could still keep rates on hold.
BoE Officials Weigh In
BoE Chief Economist Huw Pill said uncertainty over the conflict's economic impact should not be an excuse to delay action against inflation.
Other Market Movers
Mining and Commodities
Miners pared earlier losses, helped by steady gold prices. [GOL/]
Retail Sector Update
A CBI survey showed British retail sales have tumbled this month by the most since April 2020, when most non-food shops were shut at the onset of the COVID pandemic.
Impact on Individual Stocks
Among individual movers, Bellway dropped 17.5% after the home builder cut its profit margin outlook and warned of risks to the housing market from the conflict.
S4 Capital surged 21.3% after the advertising group said it expects its 2026 net revenues to meet analyst forecasts, despite a first-quarter hit from weaker client spending linked to the war.
(Reporting by Tharuniyaa Lakshmi in Bengaluru. Editing by Harikrishnan Nair and Mark Potter)
