The FTSE 100 experienced a decline for the fifth consecutive session, reaching a two-week low. Investor sentiment was negatively affected by stalled US-Iran talks and continued disruptions in the Strait of Hormuz. Several sectors experienced notable declines, while energy and consumer stocks showed resilience amid rising oil prices. Concerns about global equity valuations and potential economic risks also weighed on market sentiment, resulting in a significant weekly drop for the UK index.
- The FTSE 100 fell for a fifth straight session, hitting a two-week low.
- US-Iran talks remain deadlocked, and the Strait of Hormuz is effectively closed.
- Banks, defence names, pharma, and miners led declines.
- Mondi dropped around 6% due to higher costs linked to the Middle East conflict.
- Energy and consumer stocks outperformed amid elevated oil prices.
- UK retail sales rose 0.7% in March, beating expectations.
- Bank of England policymaker warned of a potential equity correction.
- The UK index is down 2.4% for the week.
The performance of the FTSE 100 reflects a market grappling with geopolitical tensions, sector-specific challenges, and macroeconomic anxieties. Uncertainty surrounding international relations and supply chain disruptions are impacting company outlooks and investor confidence. While some sectors benefit from rising commodity prices, broader concerns about economic stability and valuation risks contribute to overall market volatility and downward pressure.