FTSE 100 today: Stocks fall on conflict; UK in talks with allies to curb impact
Investing.com — British stocks continued their losing streak on Monday, starting another week under pressure as escalating tensions in the Middle East pushed oil prices above $100 per barrel, with European markets also in the red and the pound trading below $1.34.
While the blue-chip FTSE 100 reclaimed some of its earlier losses, it closed 0.3% lower and the GBP/USD dropped 0.1% against the dollar to 1.3391. The DAX index in Germany fell 0.8% and the CAC 40 in France declined 1%.
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Experts weigh in
Jefferies analysts are focusing on European and UK rate markets, where current pricing suggests more than 1.5 rate hikes from the European Central Bank and less than one cut from the Bank of England in 2026.
The firm believes recent movements in front-end rates have been driven primarily by position squaring rather than shifts in inflation expectations.
Jefferies maintains a base case of no policy changes from the ECB this year. Despite the recent increase in oil prices, the firm’s outlook leans toward potential rate cuts rather than hikes if any action is taken.
The analysts view the oil price shock as an external event that should not trigger a central bank response unless crude remains above $100 per barrel for an extended period and second-round effects emerge in the economy.
Brent Oil Futures traded at $104.31 as of 08:41 AM GMT on Monday.
If oil prices fall back below $80 within a three-month timeframe, Jefferies does not anticipate any impact on ECB policy decisions.
UK round up
British Prime Minister Keir Starmer said on Monday that his government is in discussions with international partners about measures to reduce the economic impact of the Iranian crisis on people and businesses.
Starmer warned that the longer the conflict continues, the greater the potential for economic consequences. The Prime Minister stated that the government is monitoring and assessing the risks associated with the ongoing situation and that the US and UK are working together every day.
According to Starmer, the UK has implemented measures to build economic resilience over the past 18 months and the government is now working with international partners to explore additional steps that can be taken to mitigate the economic effects of the crisis. Starmer also said that Finance Minister Racheal Reeves is in daily talks with the Bank of England to stay ahead of energy price risks.
Nigel Farage invested £215,000 ($286,650) in Bitcoin treasury firm Stack BTC Plc, which is run by former Chancellor of the Exchequer Kwasi Kwarteng.
The Reform UK leader acquired 4.3 million shares at 5 pence per share, giving him a 6.31% shareholding in the company, Stack BTC said on Monday in a statement. Farage’s stake is larger than that of Kwarteng, the firm’s executive chairman, who holds a 5.43% interest, including shares owned by his wife.
Clarkson (LON:CKN)) reported underlying profit before taxation of £90.6m for the year ended December 31, 2025, down from £115.3m in 2024.
Revenue declined to £631.4m from £661.4m in the prior year, a decrease of 4.5% year-over-year. The company’s forward order book for invoicing in 2026 stood at $244m as of December 31, 2025, up from $231m a year earlier.
M&C Saatchi (LON:SAA) said Monday that Chief Executive Officer Zaid Al-Qassab will step down from his position and leave the board on March 31, 2026, by mutual agreement with the company.
Dame Heather Rabbatts, currently serving as Non-Executive Chair, will assume the role of Executive Chair on an interim basis until a new Chief Executive Officer is appointed. The company said it will initiate a comprehensive formal search process to identify a replacement.
During the interim period, Dame Heather will focus on delivering the company’s growth strategy and supporting the senior leadership team. An operating board comprised of members from the company’s senior leadership team will be in place during this transition.
GSK plc (LON:GSK) announced Monday that it has reached a licensing agreement with Alfasigma S.p.A., under which the Italian pharmaceutical company will acquire worldwide exclusive rights to develop, manufacture and commercialize linerixibat, an investigational treatment for cholestatic pruritus in primary biliary cholangitis.
Linerixibat is an ileal bile acid transporter inhibitor currently under regulatory review in multiple markets, including the US, EU, UK, China and Canada.
The drug has been granted Orphan Drug Designation in the US, EU and Japan, and priority review in China for treating cholestatic pruritus in primary biliary cholangitis patients.
