FTSE 100 Live: Retail Struggles as Gilt Yields Hit 18-Year Peak

Live Market Updates

At 10:17, the FTSE 100 experienced a fresh fall as higher energy prices and weakening consumer sentiment impacted major retailers. The index lost 0.5% or 53.52 points, reaching 9918.65. This decline followed President Trump’s extension of Iran peace talks, which failed to prevent Brent crude from touching $110 a barrel.

The situation was further exacerbated by reports that the US is considering sending up to 10,000 additional ground troops to the Middle East. Deutsche Bank noted that while the delay in potential conflict may reduce immediate escalation risks, it does not offer clarity on the path toward resolution. Additionally, the Strait of Hormuz remains largely closed, contributing to ongoing concerns.

Wall Street futures remained flat after last night’s worst session since the start of the war. The tech-focused Nasdaq Composite fell 2.4%, entering correction territory with an 11% decline from its recent peak. Meanwhile, the UK 10-year gilt yield returned to an 18-year high above 5%.

Higher interest rate expectations continued to affect housebuilders, with Moneyfacts reporting an average mortgage rate of 5.58%. Retail spending outlooks also darkened after the Office for National Statistics (ONS) announced a 0.4% drop in February sales volumes, and GfK reported weakened consumer confidence in March.

Capital Economics stated that the combination of rebounding CPI inflation, easing wage growth, and higher unemployment would slow consumer spending growth from 1% in 2025 to just 0.1% this year.

Key Stock Movements

On the FTSE 100 fallers board, JD Sports Fashion dropped 1.5p to 68.4p, and Games Workshop retreated 2.5% or 460p to 17,760p. Marks & Spencer slipped 2% or 7p to 324p despite UBS analysts maintaining their Buy stance with a price target of 425p.

Two of the worst-performing stocks since the start of the war, Persimmon and Barratt Redrow, fell 23.5p to 1094.5p and 7.1p to 261.2p respectively.

On the risers board, AstraZeneca lifted 3% or 446p to 14,276p after reporting positive late-stage trials for its tozorakimab lung disease treatment. NatWest improved 2.8p to 537.8p after Deutsche Bank raised its price target from 730p to 840p.

Lloyds Pays Compensation After IT Glitch

Lloyds Banking Group has compensated customers affected by an IT glitch that exposed personal data earlier this month. Up to 447,936 Lloyds, Halifax, and Bank of Scotland customers saw other people’s transactions or had their data shared due to IT issues on 12 March.

So far, £139,000 in compensation has been paid to 3,625 customers for distress and inconvenience linked to the incident. No financial losses have been identified yet.

Consumer Spending Outlook

Despite a 0.4% drop in February retail sales volumes, which was better than City forecasts for a 0.7% decline, GfK consumer confidence dipped in March due to stagflationary concerns related to the Iran war. Capital Economics noted that while retail activity held up better than expected in February, deteriorating consumer confidence suggests real retail spending will weaken in the coming months.

CMA Investigates Online Reviews

The Competition and Markets Authority (CMA) is investigating five firms, including Just Eat, Dignity, Autotrader, Feefo, and Pasta Evangelists, over fake and misleading online reviews. Since April last year, companies have been banned from certain tactics around online reviews, such as fake posts and paid-for reviews that are not clearly marked as incentivised.

Sarah Cardell, chief executive of the CMA, emphasized that fake reviews undermine consumer trust, with many people worried about misleading content when looking at reviews online.

Oil Prices and Mortgage Costs

President Trump’s extension of Iran peace talks failed to cool oil prices, with Brent crude rising 1.3% to $109.42 a barrel. The jump followed reports of potential US troop deployments to the Middle East. Growing fears of stagflation also weighed on bond markets, with the UK 10-year gilt yield nearing an 18-year high at near 5%.

Rising interest rate expectations led to an increase in the Moneyfacts average mortgage rate to 5.58%, up from 5.50% the previous day.

Economy Fears and Consumer Confidence

Confidence in the general economy has fallen significantly as fears about the Middle East conflict spread. GfK’s long-running consumer confidence index dropped two points to minus 21, with expectations for the general economy over the next 12 months slumping six points to minus 37.

Retail Sales Volumes Dip

Retail sales volumes fell by 0.4% in February, following a strong performance in January. The ONS noted that online and non-store retail volumes also declined, possibly due to consumers bringing forward their spending to the January sale period.

The ONS revised its estimate for January volume growth to 2%, up from 1.8% in its previous publication. December’s figure was also lifted to 0.1% from a fall of 0.4%.

Sales volumes rose by 0.7% in the three months to February compared to the three months to November. Volumes were 3% higher than the three months to February 2025.

FTSE 100 and Brent Crude

Brent crude oil prices stayed near $108 a barrel after President Trump delayed threatened strikes on Iran’s energy facilities. The extension came as US stock markets experienced their worst session since the start of the war, with the Nasdaq Composite down 2.4% and in correction territory.

The FTSE 100 is seen opening about 0.5% higher, having fallen 1.3% or 134.67 points to 9972.17 in yesterday’s session. Asia markets are mixed, while the price of gold has risen 2% to $4463 an ounce.