April 9 (Reuters) - The main UK stock indexes eased on Thursday after recording their strongest session in months a day earlier, as oil prices rebounded on growing doubts over a fragile ceasefire in
UK stocks lose steam on Middle East ceasefire doubts
Market Performance and Key Drivers
April 9 (Reuters) - The UK's FTSE 100 edged lower and mid cap stocks posted a bigger fall on Thursday after recording their strongest session in months a day earlier, as oil prices rebounded on growing doubts over a fragile ceasefire in the Middle East conflict.
The blue-chip FTSE 100 closed 0.1% lower at 10,603.5 points and the FTSE 250 was down 1%.
Energy Sector and Oil Prices
FTSE 350 Energy Index Rises
The FTSE 350 energy index climbed 2% as oil prices jumped on concerns that energy flows through the crucial Strait of Hormuz will remain restricted. [O/R]
Geopolitical Tensions and Ceasefire Doubts
Ceasefire Viability in Question
The viability of the ceasefire is in question amid continued Israeli strikes on Lebanon, causing Iran to suggest it would be "unreasonable" to proceed with talks to forge a permanent peace deal.
Previous Market Rally
The FTSE 100 recorded its biggest daily percentage gain in a year on Wednesday after the deal between the U.S. and Iran for a two-week ceasefire.
Interest Rates and Homebuilders
Impact of Bond Yields
Rate-sensitive homebuilders came under pressure as bond yields edged higher. The two-year gilt yield, which reflects near-term rate expectations, rose to 4.221% a day after its largest one-day fall since March 2023.
Bank of England Rate Expectations
Traders were betting on around 34 basis points of rate hikes from the Bank of England by the end of this year, compared to 32 bps on Wednesday.
Housing Market Cooling
RICS Survey Insights
Britain's housing market cooled noticeably last month as economic uncertainty stemming from the Iran war unnerved buyers who face rising mortgage rates, a survey from the Royal Institution of Chartered Surveyors showed.
Company Movers
Ceres Power Holdings
Ceres Power Holdings fell 6.2% after brokerage Peel Hunt downgraded the clean energy technology developer's stock to "sell" from "hold."
Standard Life and Croda International
Insurer Standard Life and speciality chemicals maker Croda International dropped more than 3% each, as their shares were trading ex-dividend.
