London, March 5, 2026, 17:32 GMT — The market has closed.
- FTSE 100 dropped 1.5% to finish at 10,413.94. FTSE 250 slipped 0.9%.
- Oil popped higher again, dragging inflation and those rate-cut wagers back to center stage.
- Shares in Rentokil and Admiral climbed after reporting results, while Wizz Air and Reckitt dropped as both companies issued outlook warnings.
The FTSE 100 in London slipped 153.71 points, or 1.5%, to finish at 10,413.94 this Thursday, erasing its earlier advance as oil prices took another leg higher and traders pulled back. Brent crude hovered near $84.41 a barrel during the afternoon. The FTSE 250 also fell, ending off 0.9%.
Oil’s jump is front and center at the moment, feeding directly into inflation bets. Rising energy prices often translate into higher-for-longer borrowing costs—rate-sensitive stocks typically feel that impact before others.
Bond yields, which track the returns investors want for holding government debt, moved sharply this week after traders pared back expectations for imminent rate cuts. That shift hit UK housebuilders and consumer stocks right out of the gate.
Money markets have shifted—only one quarter-point cut from the Bank of England is priced in for this year, compared to two at February’s close. Traders are now betting about 75% on rates staying put at the upcoming meeting. The UK’s latest data tells a split story: construction remains in contraction, but services hold up.
Thursday’s decline came right after the FTSE 100 posted a 0.8% gain in the previous session, closing at 10,567.65.
Shares in Rentokil Initial jumped to the top of the board after the pest-control company reported a 4% increase in annual adjusted pretax profit and pointed to early signs of stability returning to its North American segment following a weak spell. Chair Richard Solomons, the company added, intends to step down once a replacement is found.
Shares in Admiral rose following its announcement of record annual profit and a boosted dividend. The insurer posted a 16% jump in profit before tax from continuing operations to £957.9 million, and increased its dividend per share to 205.0p.
Shares of Reckitt slipped as the consumer health and hygiene firm flagged that softer cold-and-flu demand would weigh on first-quarter sales. Trading in Europe remains “challenging,” according to the company. CEO Kris Licht called emerging markets “must-win” territory, highlighting a “significant” runway for growth. Reuters
Airline names weighed as well. Wizz Air dropped, warning that turmoil tied to the Middle East would knock roughly 50 million euros off yearly profit. “We are not naked,” CEO Jozsef Varadi told Reuters, highlighting the carrier’s fuel-cost hedges. Reuters
Gold miners faded alongside the metal’s dip, while housebuilder shares came under pressure with investors rethinking the pace of central bank rate cuts if energy prices remain elevated. Defensive stocks hung in there, though their gains couldn’t counteract the afternoon selloff.
Coats jumped among mid-caps, buoyed by a bump in its medium-term goals: the group now sees operating margins in the 21%–23% range and expects to generate roughly $1 billion in free cash flow over five years. “2025 was a transformational year for Coats,” chief executive David Paja said. Coats Group plc
Shares of Harbour Energy climbed after the company unveiled a distributions policy pegged to free cash flow, with plans to return 45% to 75% annually—including a base dividend. “The policy links shareholder returns directly to free cash flow,” chief executive Linda Cook said. Harbour Energy
Shares in recruiter PageGroup slid after the company posted a sharp 67% drop in profit before tax to £16.2 million and slashed its total dividend per share to 8.57p, down from 17.11p. Chief executive Nicholas Kirk pointed to persistent difficulty converting interviews into accepted offers, calling it “the most significant area of challenge.”
If this oil rally holds, the risk is clear enough: inflation jitters get stickier and rate cuts slip further out of reach. That scenario puts more pressure on UK equities to lean into defensives and energy, while cyclicals and rate-sensitive names absorb most of the pain.
Markets are bracing for Friday’s U.S. employment numbers for February, crucial for global rate bets. IMI’s UK results land the same day. The Bank of England’s rate call and minutes are lined up for March 19, with the FTSE UK index’s quarterly review changes taking hold at the March 20 close, effective from March 23.
