The FTSE 100 reversed an early decline on Friday and moved back into positive territory, as improving geopolitical sentiment helped investors re-engage with risk. The initial move lower had been driven by weakness in utilities and miners, but broader sentiment improved after Iran said the Strait of Hormuz was “completely open” to commercial traffic, prompting a sharp pullback in both oil and the US dollar and helping equities stabilise after a volatile stretch. If sustained, the move leaves the index on track for a third consecutive weekly gain.
Earlier in the session, utilities had weighed heavily on the benchmark after the Financial Times reported that Rachel Reeves had pledged to weaken the link between gas and electricity prices. The sector fell 2.7%, with National Grid and Severn Trent down around 1.3%, while SSE and Centrica dropped more than 5%. Miners also remained under pressure, with AngloAmerican down 1.9% and Glencore off 1.3%, tracking softer metals prices. Precious metal and industrial mining names experienced a broader decline, while banks remained relatively stable. BP and Shell also slipped around 0.5% as crude retreated in hopes of deescalation in the US-Iran conflict. In single stocks, Workspace Group fell 12.5% after warning of a substantial decline in annual profit. Associated British Foods is also expected to outline its latest outlook, which may draw some additional stock-specific attention into the close.
Attention now shifts to what should be a much busier UK data calendar next week. Tuesday’s labour market report covers both February and March, which may limit its usefulness in assessing the initial economic response to the recent energy shock. Wednesday’s March inflation data should be more revealing and are expected to show a clearer widening between headline and core CPI as higher petrol prices begin to feed through. Then on Thursday, the March public finances release should provide a provisional outturn for the 2025–26 fiscal year, with markets also watching for a modest technical revision to the DMO remit.
TECHNICAL & TRADE VIEW – FTSE100
Daily VWAP Bearish
Weekly VWAP Bullish
Above 10400 Target 11200
Below 10300 Target 10100
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