FTSE 100 FINISH LINE 9/4/26
FTSE 100 FINISH LINE 9/4/26
UK stocks slipped on Thursday after posting their strongest gains in months a day earlier, as oil prices climbed on renewed concerns over the stability of a fragile ceasefire in the Middle East. The benchmark FTSE 100 was down over 1%, while the mid-cap FTSE 250 fell 1.1%. In contrast, the FTSE 350 energy index rose 1% as oil prices jumped nearly 3% amid fears that key energy shipments through the Strait of Hormuz could remain disrupted. Doubts over the ceasefire intensified after Israeli airstrikes continued in Lebanon, with Iran describing further talks over a lasting peace agreement as "unreasonable."
On Wednesday, the FTSE 100 recorded its biggest one-day percentage gain in a year after a two-week ceasefire deal was announced between the United States and Iran. However, rate-sensitive homebuilder stocks came under pressure as bond yields rebounded. The two-year gilt yield, a key gauge of short-term interest rate expectations, climbed to 4.25% after suffering its sharpest daily drop since March 2023.Investors are now pricing in 40 basis points of Bank of England rate hikes by the end of the year, compared with 32 basis points expected just one day earlier. At the same time, Britain’s housing market showed signs of cooling. According to a survey by the Royal Institution of Chartered Surveyors, uncertainty linked to the Iran conflict has made prospective buyers more cautious about the risk of higher mortgage rates.
Among individual stocks, Ceres Power Holdings dropped 7.7% after Peel Hunt cut its rating to “sell” from “hold.” Meanwhile, ME Group International gained 3.7% after announcing a new partnership with retailer ASDA to roll out Wash.ME laundry machines in its stores. DCC shares rose 2.7% to 5,115p after Exane BNP Paribas upgraded the stock to "outperform" with a 6,000p price target. The brokerage cited undervalued shares, margin growth, and energy volatility upside as key drivers. Furthermore, market analysts consider the impending sale of DCC's technology business as a potential catalyst for value unlocking. The stock is up approximately 11% year-to-date. Ceres Power Holdings shares fell 9.3% to 312p, leading FTSE 250 losses after Peel Hunt downgraded the stock to "Sell" due to lowered 2026 revenue guidance of £45 million. While Peel Hunt slightly raised its target price to 200p, the median analyst target remains 460p, with the stock up 48% year-to-date.
TECHNICAL & TRADE VIEW – FTSE100
Daily VWAP Bullish
Weekly VWAP Bullish
Above 10500 Target 11000
Below 10300 Target 10000
Disclaimer: The material provided is for information purposes only and should not be considered as investment advice. The views, information, or opinions expressed in the text belong solely to the author, and not to the author’s employer, organization, committee or other group or individual or company.
Past performance is not indicative of future results.
High Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% and 74% of retail investor accounts lose money when trading CFDs with Tickmill UK Ltd and Tickmill Europe Ltd respectively. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Futures and Options: Trading futures and options on margin carries a high degree of risk and may result in losses exceeding your initial investment. These products are not suitable for all investors. Ensure you fully understand the risks and take appropriate care to manage your risk.
Patrick has been involved in the financial markets for well over a decade as a self-educated professional trader and money manager. Flitting between the roles of market commentator, analyst and mentor, Patrick has improved the technical skills and psychological stance of literally hundreds of traders – coaching them to become savvy market operators!