The FTSE 100 Finish Line - Tuesday, March 10

Jamie Street- Unsplash

London's FTSE indexes bounced back on Tuesday after three straight days of declines, driven by U.S. President Donald Trump's comments hinting at a possible resolution to the Middle East conflict. As the market neared closing, the blue-chip FTSE 100 was up 0.6%, while the mid-cap FTSE 250 surged 1.9%. If these gains persist, it would represent the strongest single-day rally for the FTSE 250 in nearly a year. Trump's remarks on Monday caused significant ripples in the oil market, leading to a sharp 7% drop in prices. This occurred despite stern warnings from Iran's Revolutionary Guards, who threatened to block any Middle Eastern oil shipments if U.S. and Israeli attacks continued. While most major British sectors experienced gains, the energy index defied the trend, slipping 2.1%. Oil giants Shell and BP were affected, with shares falling 1.7% and 2.9%, respectively.

Interest rate speculation remained volatile as traders dealt with mixed signals from the Bank of England (BoE). Market sentiment fluctuated between expectations of a rate cut and a potential hike, highlighting ongoing uncertainty. Analysts at Standard Chartered and Morgan Stanley have postponed their rate cut predictions to the second quarter, citing inflation risks from geopolitical tensions. The FTSE 100 is still 4.6% below its record high from late February, and attention is now focused on the BoE’s upcoming rate decision on March 19. In other developments, British consumer spending showed modest growth last month. However, surveys from Barclays and the British Retail Consortium (BRC) indicated increasing pessimism among households regarding the economic outlook due to inflation concerns. On the corporate front, homebuilder Persimmon's shares rose 6.3% following its announcement to increase housing deliveries in 2026, with profits expected at the higher end of forecasts. Domino’s Pizza also saw a 3% increase as the fast-food chain revealed ambitious plans to expand beyond pizza with a new fried chicken brand, aiming to seize new growth opportunities.

TECHNICAL & TRADE VIEW - FTSE100

• Daily VWAP Bearish

• Weekly VWAP Bullish

• Below 10600 Target 10000