Investing.com — British stocks jumped on Thursday as a Federal Reserve rate hike and easing fears over the U.S.-Iran conflict lifted sentiment, with investors also awaiting the Bank of England’s policy decision.
The was last up 0.71%, as of 03:12 ET (07:12 GMT). Germany’s rose 0.68% and France’s gained 0.58%. Sterling was up 0.10% against the dollar at $1.3398.
On policy, the Fed raised rates 25bp to 3.75-4% on Wednesday, its first hike in more than three years, and signalled one more before a long hold.
The BoE is widely expected to hold at 3.75% in a 6-3 vote later Thursday,per analysts, after UK inflation edged up to 3.1% on rising fuel costs; ING’s James Smith said there is “very little sign” the energy shock is broadening into core inflation.
UBS noted Prime Minister Andy Burnham and Chancellor John Healey have repeatedly reaffirmed their commitment to fiscal discipline ahead of the October Budget, even as rising gilt yields squeeze the fiscal arithmetic.
U.S. President Donald Trump told reporters the U.S. is “hopefully” toward the end of its war with Iran, adding he has spoken with Tehran “directly,” the most current signal of possible de-escalation.
That followed a sharp drop in Strait of Hormuz traffic, with only three commodity vessels transiting the waterway on Wednesday, down from 12 a day earlier and well below the 10-day average of 17, according to Reuters ship-tracking data.
Fighting between Saudi-backed Yemeni government forces and the Houthis intensified overnight, with the Houthis claiming to have downed a Saudi F-15, while Riyadh has reportedly sought air-defence support from France, the UK, Pakistan and Egypt. Oil eased further after reports Saudi Arabia offered extra crude via Oman to calm supply fears.
fell 2.07% to $103.64 a barrel, while dropped 1.68% to $100.72. slipped 0.64% to $4,359.20, while rose 1.32% to $4,318.99.
UK round up
agreed to revised takeover terms from Norway’s worth $396 million, with DNO raising its cash offer to $5.214 a share from $4.224 plus a $0.99 dividend, after rival bidder Genel Energy dropped out.
raised its 2026-27 profit guidance by £12 million to £1.255 billion, its fourth upgrade this year, after first-half profit rose 10.5% on hot summer weather boosting sales.
said it expects 2026 adjusted EBITDA around the top end of analyst consensus, helped by strong summer operations and its newly acquired Bluefield Solar Income Fund.