London stocks firmed on Wednesday as a ceasefire agreement between the United States and Iran catalysed a broad market rally, pushing the blue-chip FTSE 100 higher and strengthening sterling against the dollar.
By 0704 GMT the FTSE 100 was up 2.7%. The British pound appreciated 1.04% versus the dollar to 1.3430. Elsewhere in Europe, Germany’s DAX recorded a strong advance of 5.2%, and France’s CAC 40 climbed 1.8%.
The ceasefire announcement was made publicly by President Donald Trump on Truth Social, where he wrote: "...I agree to suspend the bombing and attack of Iran for a period of two weeks. This will be a double sided CEASEFIRE! The reason for doing so is that we have already met and exceeded all Military objectives, and are very far along with a definitive Agreement concerning Longterm PEACE with Iran, and PEACE in the Middle East,"
UK round-up and political reaction
UK Prime Minister Keir Starmer is travelling to the Middle East to meet with allies and back ceasefire efforts following the overnight agreement. He has welcomed the ceasefire, saying it will provide a measure of relief for the region and the wider world. During his trip, Starmer plans to focus on negotiations to ensure that the reopening of the Strait of Hormuz - a vital corridor for global oil shipments - is sustained on a permanent basis.
Housing market update
Halifax reported a 0.5% decline in UK house prices in March, leaving the average property price at 299,677. This drop follows a 0.3% rise in February, and annual price growth eased to 0.8% from 1.2% the previous month.
Amanda Bryden, Head of Mortgages at Halifax, said the slowdown reflects uncertainty linked to the Middle East conflict. She added that concerns about higher energy prices have lifted inflation expectations, which in turn have pushed up mortgage rates and dampened confidence that interest rates will be reduced this year.
Corporate headlines
Shell PLC (SHEL) disclosed that its first-quarter 2026 indicative refining margins rose to $17 per barrel. The company cautioned, however, that unprecedented volatility in commodity prices is expected to drive a working capital outflow.
Shell stated that working capital movements in the quarter are expected to be between negative $15 billion and negative $10 billion, reflecting the effect of sharp price swings on inventories and receivables.
In corporate appointments, Renishaw PLC (RSW) announced the hire of John Shipsey as Chief Financial Officer and Executive Director, effective April 13, 2026. Shipsey joins the manufacturing technologies provider with substantial board and senior executive experience, having served as CFO at Dyson Limited for 12 years, at Smiths Group plc for five years, and at Featurespace Limited for two years.
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Market implications
The immediate market reaction highlights the sensitivity of equity and currency markets to geopolitical developments: a ceasefire reduced near-term geopolitical risk, supporting risk assets and lifting the pound. UK housing data points to a market tempered by geopolitical uncertainty and higher inflation expectations, while the Shell update underscores how commodity price swings can translate into substantial working capital volatility for energy companies. Separately, the Renishaw appointment will be watched by investors assessing leadership and financial stewardship at an engineering-focused firm.