April 2 (Reuters) - London's main indexes fell on Thursday, snapping three straight days of gains, as market sentiment weakened after U.S. President Donald Trump vowed more aggressive strikes on Iran.
FTSE 100 closes higher after Britain's move to hold talks on Strait of Hormuz
Market Reaction and Key Developments
April 2 (Reuters) - London's FTSE 100 stock index closed higher on Thursday after Britain said it would host talks on reopening the Strait of Hormuz.
Diplomatic Efforts and International Response
British foreign minister Yvette Cooper will chair the virtual meeting of about 35 countries, including France, Germany, Italy, Canada and the United Arab Emirates on Thursday to explore ways to restore freedom of navigation in the area. The United States is not due to attend.
U.S. and Iran Stance
U.S. President Donald Trump has vowed more aggressive strikes on Iran, saying military operations would be intensified.
Iran is drafting a protocol with Oman to monitor traffic in the Strait of Hormuz, the official IRNA news agency cited the Deputy Foreign Minister as saying on Thursday.
Stock Market Performance
The blue-chip FTSE 100 index closed up 0.6%, while the midcap FTSE 250 closed down 0.2%. Both indexes logged weekly gains in a holiday-shortened week.
Sector Highlights
Energy Sector
The energy index rose 2.7%, leading gains as oil hit around $110 a barrel after U.S. President Donald Trump vowed continued attacks on Iran. [O/R]Oil Majors
Oil majors BP and Shell rose 2.6% and 2.9% respectively, ranking among the top gainers on the benchmark index.Pharmaceuticals
The pharma index climbed 1.7% as AstraZeneca rose 1.9% after it said a late‑stage trial showed its Imfinzi combination improved progression‑free survival in a common liver cancer.
Business Sentiment and Economic Outlook
- British business confidence fell from +2.8 on the eve of the conflict to -1.1 by the end of the 10-week survey period on March 16, according to a survey of accountants that echoed similar concerns from other groups since the start of the U.S.-Israeli attacks.
- British companies expect to raise prices more quickly in the coming 12 months as they respond to a surge in energy prices due to the Iran war, a Bank of England (BoE) survey showed.
- Markets are pricing in more than two quarter‑point hikes by the BoE by the end of the year, according to data compiled by LSEG.
- Markets will be closed for Good Friday and Easter Monday.
(Reporting by Tharuniyaa Lakshmi in Bengaluru; Editing by Sahal Muhammed and Jane Merriman)
