March 26 (Reuters) - London's FTSE indexes dropped more than 1% on Thursday, as lingering uncertainty about a potential end to the Middle East conflict weighed on sentiment. U.S. President Donald
UK's FTSE 100 falls more than 1% on Middle East uncertainty; 3i shares slide
Market Overview and Key Developments
March 26 (Reuters) - London's FTSE 100 equities index dropped more than 1% on Thursday, as lingering uncertainty over a Middle East ceasefire weighed on sentiment, while a steep fall in 3i Group shares added further pressure.
Middle East Tensions Impact Markets
A senior Iranian official told Reuters the U.S. proposal was "one‑sided and unfair", while U.S. President Donald Trump warned that Iranian negotiators "better get serious soon" or there would be "NO TURNING BACK."
FTSE Index Performance
The blue-chip FTSE 100 closed down 1.3%, snapping a two‑day winning streak, while the midcap FTSE 250 index fell 0.8%.
Notable Stock Movements
- 3i Group shares shed 17.6% to more than a two-year low after the private equity firm said its discount retailer Action expects like-for-like sales growth between 4% and 5% in 2026, broadly similar to the 4.9% growth it recorded in 2025.
- Global stocks slipped on Thursday as the price of Brent crude pushed past $105 a barrel. That move followed the Iranian government's announcement that it was ruling out talks with Washington, dampening expectations of a quick end to the nearly month‑long U.S.-Israeli war with Iran.
- Around 90% of the economists polled by Reuters now expect the Bank of England to hold its key interest rate at 3.75% through the end of this year, even as markets price in nearly two or three hikes after war‑driven energy shocks forced a sharp reversal from earlier this year, when investors were expecting rate cuts.
- Britain's economic growth prospects this year received the sharpest downgrade of any major economy in the OECD's interim forecast update following the Middle East conflict.
- Next shares rose 4.2% to the top of the benchmark after CEO Simon Wolfson said the clothing retailer has not seen a noticeable drop-off in UK sales since the war started at the end of February.
- Playtech shares fell 12.1%, pushing the stock to the bottom of the midcap index, after the online gambling platform missed revenue estimates for its 2025 fiscal year.
Reporting Credits
(Reporting by Tharuniyaa Lakshmi in Bengaluru; Editing by Sahal Muhammed and Paul Simao)
