March 25 (Reuters) - The UK's FTSE 100 extended its rebound on Wednesday as investors took comfort from reports about U.S. efforts to bring the Iran war to a close, while also assessing Britain's
London's FTSE 100 gains on Mideast de-escalation bets
FTSE 100 Rises Amid Geopolitical and Economic Developments
March 25 (Reuters) - The UK's FTSE 100 closed higher on Wednesday, as investors bet on a de-escalation in the U.S.-Israeli war with Iran, while assessing domestic inflation data.
Geopolitical Tensions and Market Sentiment
Iran is still reviewing a U.S. proposal to end the war in the Gulf, despite an initial response that was negative, a senior Iranian official told Reuters on Wednesday, indicating that Tehran has so far stopped short of rejecting it outright.
Market Performance Overview
The blue-chip FTSE 100 index closed up 1.4% and the midcap FTSE 250 added 1.6%.
Key Economic Indicators and Sector Highlights
- British consumer price inflation held at 3.0% in February,unchanged from January's rate, official figures showed onWednesday, ahead of a likely upward lurch as war in the MiddleEast pushes up prices.
- Markets have priced in two or three quarter-point hikesthis year, with the Bank of England sharply increasing itsinflation forecast, predicting it would rise towards 3.5% by themiddle of the year.
- BoE policymaker Megan Greene said she had not been close to voting to raise borrowingcosts at last week's interest rate-setting meeting, which wasdominated by the economic hit from the conflict in the MiddleEast.
- Miners rose 4.2% as gold prices gained after a drop in oilprices eased inflation and rate concerns, while banks climbed2.4%, with both sectors delivering the biggest boost. [MET/L]
- The energy sub-index finished flat after oil prices fellon prospects of a ceasefire in the Middle East war. Oil majorShell fell 0.8%. [O/R]
- EnQuest fell 4.7% after the North Sea-focussed oilproducer maintained its 2026 production outlook, banking oninvestments in Britain and Southeast Asia, after Britain'swindfall levies hit last year's post-tax profit.
- ASOS rose 13% after the online retailer reported a 50%jump in first-half profit, helped by cost cuts, app improvementsand a sharper fashion offering.
(Reporting by Tharuniyaa Lakshmi in Bengaluru; Editing by Shreya Biswas and Gareth Jones)
