A wave of relative calm has washed over global markets as President Trump indicated the US and Iran would hold talks within days.
Trump said further talks ‘could be happening over the next two days’ in Islamabad, and said the war was ‘very close to over’.
Stocks continued to tick higher as oil retreated further to $95 a barrel, even as the US continued with its blockade of the Strait of Hormuz.
It was a slightly bleaker picture closer to home after the International Monetary Fund said the economic fallout from the war in Iran would hit the UK hardest on Tuesday.
It slashed the UK’s growth forecasts, the biggest downgrade of all the G7 nations but the FTSE 100 shrugged off the gloomy forecasts, closing 26 points higher yesterday afternoon.
London’s blue-chip index is trading flat this morning.
Equity markets have broadly regained their losses since the start of the war, despite the ongoing conflict and elevated energy prices.
Neil Wilson of Saxo UK simply says that the market thinks the war is over.
‘President Trump also thinks the shooting is nearly done, saying the war is “close to over” and talks could resume within the next day or so,’ he says.
‘This is proved to be a typical V-shaped, momentum-led recovery much like we saw last April following President Trump’s Liberation Day tariffs – a geopolitical shock offered buying opportunity; investors are conditioned to buy the dip, rates haven’t spike too badly and are coming back down, while earnings forecasts remain exceptionally bullish, and AI spend continues to underpin an astonishing business investment cycle.’
He added: ‘This is laced with the idea that AI will drive exceptional productivity growth, boosting capital over labour. In fact, AI is likely to usher in one of the biggest ruptures in the relationship between capital and labour ever known.’
M&S shakes up Sparks card
Marks & Spencer has announced a radical transformation of its Sparks loyalty programme.
The high-street stalwart has announced that Sparks shoppers will be able to earn ‘real money rewards’ to spend across any part of M&S, including its food, clothing, beauty and homeware lines.
Full details below.
Antofagasta shares rise on mixed update
Antofagasta shares bounced this morning after a mixed trading update, which saw weaker copper production but improved costs.
The FTSE 100 firm reported a softer quarter for copper production, which fell 7.6 per cent year-on-year to 143,000 tonnes, partially offset by an 8.4 per cent increase in gold production to 46,500 ounces.
The miner was stronger on net cash costs at $1.08/lb, a 29.9 per cent improvement on last year, due to strong by-product credits from gold and molybdenum.
Chief executive Iván Arriagada said: ‘As we move through the year, we expect copper production to increase quarter‑on‑quarter, supported by higher ore processing rates and improving grades at Los Pelambres, in line with the mine plan.
‘The copper price remains constructive in 2026, and the medium‑term fundamentals for copper are compelling, underpinned by structural demand drivers and constrained supply.’
Shares are up 3.59 per cent to 4,014p.
Saga shares jump as it swings to profit
Saga shares are up nearly 8 per cent this morning after it swung to a full-year profit in the year to January 2026.
The over-50s specialist reported a pre-tax profit of £2.1million from a loss of £160.2million in the previous year, boosted by its travel and insurance segments.
FTSE in the green as investors eye end to the war
The Footsie is up 25 points at market open as investors cling to their remaining optimism for a swift end to the war.
Brent crude continues its retreat, down to $94.73 per barrel, even as the US continues its blockade of the Strait of Hormuz.
Standard Life buys Aegon UK for £2bn
Standard Life has agreed to buy the UK arm of Dutch insurer Aegon for £2billion, as it grows its share of the country’s pensions market.
Aegon announced it was weighing a sale of its UK insurance business in December as part of a push into the US and attracted interest from Royal Bank of Canada, Lloyds and Royal London.
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Stocks tick higher as oil continues to fall; Standard Life buys Aegon UK – MARKETS LIVE
