Early market roundup: Shares lower amid uncertainty on MidEast; oil up

Stock prices opened lower in London on Thursday as the price of Brent oil rose amid uncertainty regarding the ongoing war between US-Israel and Iran; however blue chip retailer Next shares rose after reporting annual results.

The FTSE 100 index opened down 90.61 points, 0.9%, at 10,016.23. The FTSE 250 was down 213.68 points, 1.0%, at 21,261.85, and the AIM all-share was down 5.80 points, 0.8%, at 723.44.

The Cboe UK 100 was down 0.8% at 996.46, the Cboe UK 250 was down 0.9% at 18,450.87, and the Cboe small companies was marginally lower at 16,926.45.

In European equities on Thursday, the CAC 40 in Paris was down 0.7%, while the DAX 40 in Frankfurt was down 1.2%.

US President Donald Trump said Iran’s leaders are ‘afraid’ to admit they are negotiating with Washington.

Iran has denied that talks with the US are taking place, but Trump claimed that if they were to acknowledge discussions, ‘they’ll be killed by their own people’.

On Wednesday, an Iranian official outlined five conditions to end the war, following reports that Tehran had received a 15-point proposal from the US.

Oil prices climbed again after dipping below $100 on Wednesday, with Brent trading at $105.94 a barrel early Thursday, up from $100.91 late Wednesday. Energy stocks were among the best performers in London, with BP and Shell up 0.9% and 0.8% respectively on stronger Brent prices.

The pound was quoted at $1.3348 early Thursday, lower than $1.3377 at the London equities close on Wednesday. Against the euro, sterling stood at €1.1547, down from €1.1558. The euro traded at $1.1558 early Thursday, lower than $1.1572 late Wednesday. Against the yen, the dollar was quoted at JP¥159.48, up from JP¥159.19.

After two days of gains, the FTSE 100 has edged lower this morning as investors look for tangible signs of progress towards a peace deal between Washington and Tehran and the restoration of oil and gas flows through the Strait of Hormuz.

Next was the standout performer in the FTSE 100, up 5.9%, after reporting strong full-year growth. Revenue for the 52 weeks to January 31 rose to £6.90 billion from £6.12 billion a year earlier, while pretax profit increased to £1.19 billion from £987.0 million, supported by robust full-price sales and improved clearance activity.

The Leicester-based retailer proposed a final dividend of 181p per share, up from 158p a year prior, extending its track record of shareholder returns. It added that it expects to return around £500 million to shareholders in financial 2027.

Looking ahead, Next maintained its growth guidance but flagged potential cost pressures and demand uncertainty linked to geopolitical tensions, particularly in the Middle East, which could affect supply chains and pricing if prolonged.

Next said: ‘Sales in the first eight weeks of the year were encouraging in the UK; they were also strong overseas up to the point the conflict began in the Middle East.

‘Looking forward, we have not yet reached the period of unusually strong UK trading we experienced last year and, perhaps more importantly, instability in the Middle East – which represents around 6% of our total turnover – may continue to restrain growth in that region.’

Last year, sales benefited from favourable weather and disruption at key rival Marks & Spencer, which was up 1.0%, creating tougher comparative figures this time around, Next noted.

At the bottom of the index, Aviva was down 4.3% as its shares traded ex-dividend. Other ex-dividend stocks in the red included Segro, down 3.7%, and St James’s Place, down 2.9%.

Miners were also weaker. In the FTSE 100, Fresnillo, Antofagasta and Anglo American were all down 4.2% as gold prices slipped to $4,431.55 an ounce early Thursday from $4,554.59 on Wednesday.

Gold has fallen more than 15% since the start of the Iran war, in a sharp market rout that has raised questions about its perceived role as a haven asset.

While gold is typically viewed as a beneficiary of geopolitical uncertainty, the metal has been swept up in the broader market turmoil triggered by the conflict, bringing its two-year rally to an abrupt halt.

On the FTSE 250, tech retailer Currys was at the bottom, down 9.9%, after confirming its outlook remains on track but announcing that Chief Executive Alex Baldock will step down after eight years in the role. Baldock will remain during a transition period while the board conducts a formal search for a successor.

Currys said trading since its January update has been in line with expectations and it continues to guide for adjusted pretax profit of £180 million to £190 million for the year to early May, up 11% to 17% year-on-year. It also expects to end the year with net cash above its £100 million target.

Chair Ian Dyson said: ‘I want to thank Alex for his exceptional contribution to Currys. During his eight years here, he has achieved a huge amount, transforming the business in the face of some difficult headwinds. Currys is very well positioned for future success with a strategy that is clearly working, great financial health and a very strong leadership team.’

Ceres Power topped the FTSE 250, up 7.7%, after signing a strategic partnership with FTSE 100-listed Centrica, which was up 0.2%, to deploy multi-gigawatt on-site fuel cell power solutions across the UK and Europe.

The collaboration aims to meet rising electricity demand and address grid connection delays by providing high-efficiency, low-carbon, grid-independent power for commercial and industrial users, including data centres and manufacturing sites.

Separately, Ceres reported a decline in 2025 revenue to £32.6 million from £51.9 million, while its pretax loss widened to £46.3 million from £25.9 million. The company said it has laid a ‘strong’ foundation for 2026, with £45 million of contracted revenue already secured ahead of any new business.

Chief Executive Phil Caldwell said: ‘In 2025 our first partner achieved scaled production, unlocking Ceres’ first royalties, a significant milestone for the business.’

Among smaller caps, GSTechnologies slumped 28% after saying its suspension will remain in place until it obtains a MiCA licence and that crypto asset trading services have been temporarily suspended from April 15.

In Asia on Thursday, the Nikkei 225 in Tokyo closed down 0.3%. In China, the Shanghai Composite ended down 1.1%, while the Hang Seng in Hong Kong fell 1.9%. The S&P/ASX 200 in Sydney closed down 0.1%.

In the US on Wednesday, Wall Street ended higher, with the Dow Jones Industrial Average up 0.7%, the S&P 500 up 0.5% and the Nasdaq Composite up 0.8%.

The yield on the US 10-year Treasury was quoted at 4.37%, widening from 4.32% on Wednesday. The yield on the US 30-year Treasury was quoted at 4.93%, widening from 4.89%.

Still to come on Thursday’s economic calendar are US weekly jobless claims, with initial claims due at 1230 GMT and consensus at 210,000 versus 205,000 the week prior.

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