FTSE 100 steady as oil jumps, UK inflation ticks higher

London’s benchmark FTSE 100 index remained largely unchanged on Wednesday as investors tracked developments in the Middle East and digested fresh inflation data from the UK.

The blue-chip index slipped marginally by 0.03% to 10,495.22 points by 1048 GMT.

Meanwhile, the mid-cap FTSE 250 index edged up 0.2%.

Market participants remained cautious as geopolitical risks continued to cloud sentiment.

Fragile Middle East truce keeps markets on edge

Investor sentiment was weighed down by lingering doubts over a fragile ceasefire in the Middle East.

US President Donald Trump extended the truce with Iran, but uncertainty persisted over whether both Iran and Israel would honour the agreement.

The lack of clarity around the situation led to heightened caution across global markets.

Traders continued to monitor developments closely, with concerns that any escalation could disrupt supply chains and energy markets.

Oil prices surge, impacting sector performance

Oil prices climbed sharply on Wednesday, with Brent crude crossing the $100 per barrel mark.

The surge followed reports that at least three container ships were struck by gunfire in the Strait of Hormuz.

The spike in crude prices had a mixed impact on equities.

Airline stocks came under pressure due to concerns over rising fuel costs.

Shares of British Airways parent IAG fell 2.1%, while EasyJet dropped 1.6% and Wizz Air declined 1.3%.

In contrast, energy majors benefited from the rise in oil prices.

BP gained 1.9%, while Shell advanced 0.8%, reflecting improved earnings prospects for oil producers.

Mining stocks track metals rally

Mining companies also posted gains, supported by rising prices of precious and base metals.

Fresnillo, Rio Tinto, Glencore, and Anglo American all rose more than 1%.

The gains in mining stocks provided some support to the broader index, offsetting losses seen in other sectors.

Inflation data adds to investor concerns

Fresh economic data showed that UK consumer price inflation rose to 3.3% in March, up from 3% in February.

The increase highlighted the impact of geopolitical tensions on price levels, particularly through energy costs.

The data raised concerns about the central bank’s ability to ease monetary policy in the near term.

Stock-specific movements drive market action

Among individual stocks, consumer goods company Reckitt declined sharply after missing quarterly like-for-like revenue estimates.

Its shares fell 6.2%.

On the positive side, business supplies distributor Bunzl rose 3% after reporting an increase in first-quarter revenue.

Wealth management firms also saw gains following strong inflow data from Quilter.

Quilter’s shares jumped 4.9%, while Liontrust Asset Management rose 0.7% and Aberdeen gained 0.4%.

Market outlook remains cautious

Overall, the UK equity market remained subdued as investors balanced geopolitical risks with domestic economic data.

Uncertainty surrounding the Middle East and rising inflation pressures are likely to keep markets volatile in the near term.