LONDON, March 27, 2026, 08:57 GMT
- As of 0825 GMT, the FTSE 100 was up 0.1% at 9,978.89, trimming a bit of Thursday’s 1.3% slide.
- February brought a 0.4% dip for UK retail sales, while March’s consumer confidence slumped to the weakest point in nearly a year—an 11-month low, according to Reuters.
- AstraZeneca jumped, buoyed by positive COPD trial news. Brent crude stayed above $107 a barrel, little changed.
London stocks showed little movement early Friday. By 0825 GMT, the FTSE 100 had picked up just 0.1% to reach 9,978.89, scraping back a fraction of Thursday’s 1.3% drop. AstraZeneca offered some support after posting good results from a late-stage trial. Still, jitters from the Middle East and higher oil prices kept buying subdued.
Investors are caught in a tug-of-war at the open. Susannah Streeter, chief investment strategist at Wealth Club, warned of a probable “struggle in early trade” for the FTSE as Brent crude pushes back toward $110 a barrel. Fresh UK data from Friday showed a further drag—consumer spending power is under pressure. Sharecast
Investors weighed new domestic numbers. Retail sales in February dropped by 0.4%—not as steep as the 0.7% fall forecasted by Reuters, but it still erased some of January’s momentum, when sales had posted their biggest jump since May 2024. The GfK consumer confidence index didn’t offer much relief, either, falling to -21 for March, its weakest read since April 2025.
Neil Bellamy at GfK spotted what he called a “ripple of fear” in the March figures. Over in retail, Matt Jeffers, who leads retail strategy for Accenture in the UK and Ireland, pointed to higher fuel and input costs stacking up as a challenge for retailers this spring. Reuters
European markets weren’t much help. As of 0816 GMT, the STOXX 600 slipped 0.2%. Traders now price in a 71% probability that the European Central Bank will raise rates come April. Over in the UK, a Reuters poll shows most economists expect the Bank of England to stick with a 3.75% main rate for the year, though market bets for further tightening are picking up.
Santander CIB’s Gabriella Willis says the “risk of hikes has increased” should the conflict drag on, but she’s holding to her base case—BoE rates on hold. Alan Taylor at the BoE described the bar for another increase as “high.” Over at Morgan Stanley, Bruna Skarica said officials still require “a lot more evidence” before taking any action. Reuters
AstraZeneca shares rose, with the company saying its tozorakimab drug cut COPD flare-ups in two key trials. The mood flipped on Thursday: 3i plunged 17.6% after Action, its low-cost retail chain, forecast 2026 same-store sales growth would be similar to 2025. Next jumped 4.2%.
Next’s downbeat tone lingered over consumer shares. Chief executive Simon Wolfson told Reuters any price increases in June or July would top out at “1% to 2% maximum.” The bigger worry, he said, is if the war keeps transport and energy costs elevated, which could set off a broader spike in prices for manufactured goods later on. Reuters
Oil stayed volatile, keeping its reputation as the market’s unpredictable driver. Brent crude was at $107.97 a barrel as of 0608 GMT, Reuters said, still up more than 48% from where it stood at the conflict’s start on Feb. 28. “The market is trading on war longevity, not just headlines,” noted Priyanka Sachdeva, an analyst with Phillip Nova. Reuters
It’s a straightforward bind for London. Should crude prices jump, inflation jitters and rising yields probably squeeze shoppers before energy shares even move—retailers and homegrown stocks would take the punch. But a diplomatic turn could change everything, suddenly putting the FTSE’s defensive heavyweights in charge.
