The FTSE 100 Finish Line - Tuesday, March 7

UK stocks opened higher on Tuesday after the long weekend, supported by gains in energy and consumer staples, as geopolitical tensions intensified following U.S. President Donald Trump’s ultimatum to Iran over the Strait of Hormuz. Trump demanded that Iran end its blockade by the close of Tuesday or face severe consequences. Tehran, however, has shown no sign of backing down, heightening tensions in an already fragile market environment. Despite the early advance, those gains were later erased in line with broader global risk aversion, leaving the benchmark index down more than 1%. Sentiment deteriorated further after reports that Kharg Island, a vital hub for Iran’s oil exports, had come under a series of attacks. In response, Iran’s Revolutionary Guards warned neighbouring countries that the infrastructure of the U.S. and its allies could be targeted, potentially disrupting energy supplies for years. The remarks came just ahead of Trump’s Tuesday deadline for reopening the Strait, a demand Tehran has firmly rejected. A senior Iranian official told Reuters that talks on a lasting peace could begin only after hostilities end.

Earlier in the session, the FTSE 100 had extended its recent rally, rising for a fifth straight day and briefly touching its highest level in more than a month. Media stocks outperformed, climbing 2.5%, with advertising group WPP surging 7.4%. The oil and gas sector also advanced 0.7%, helped by gains of 0.9% in BP and 0.5% in Shell. Defensive names in the consumer staples sector also lent support, with Unilever and British American Tobacco both up 1%, making them among the biggest contributors to the FTSE 100’s early gains. In contrast, aerospace and defence stocks lagged, falling 1.8%, weighed down in part by a 2.4% decline in Rolls-Royce. On the economic front, a recent survey showed that British services firms recorded their biggest month-on-month increase in costs since 2021 in March. Investors are now looking ahead to a key U.S. inflation report later this week for clues on the Federal Reserve’s next interest-rate move.

TECHNICAL & TRADE VIEW - FTSE100

• Daily VWAP Bullish

• Weekly VWAP Bearish

• Below 10500 Target 9700