FTSE 100 FINISH LINE 9/4/26 

UK stocks slipped on Thursday after posting their strongest gains in months a day earlier, as oil prices climbed on renewed concerns over the stability of a fragile ceasefire in the Middle East. The benchmark FTSE 100 was down over 1%, while the mid-cap FTSE 250 fell 1.1%. In contrast, the FTSE 350 energy index rose 1% as oil prices jumped nearly 3% amid fears that key energy shipments through the Strait of Hormuz could remain disrupted. Doubts over the ceasefire intensified after Israeli airstrikes continued in Lebanon, with Iran describing further talks over a lasting peace agreement as "unreasonable."

On Wednesday, the FTSE 100 recorded its biggest one-day percentage gain in a year after a two-week ceasefire deal was announced between the United States and Iran. However, rate-sensitive homebuilder stocks came under pressure as bond yields rebounded. The two-year gilt yield, a key gauge of short-term interest rate expectations, climbed to 4.25% after suffering its sharpest daily drop since March 2023.Investors are now pricing in 40 basis points of Bank of England rate hikes by the end of the year, compared with 32 basis points expected just one day earlier. At the same time, Britain’s housing market showed signs of cooling. According to a survey by the Royal Institution of Chartered Surveyors, uncertainty linked to the Iran conflict has made prospective buyers more cautious about the risk of higher mortgage rates.

Among individual stocks, Ceres Power Holdings dropped 7.7% after Peel Hunt cut its rating to “sell” from “hold.” Meanwhile, ME Group International gained 3.7% after announcing a new partnership with retailer ASDA to roll out Wash.ME laundry machines in its stores. DCC shares rose 2.7% to 5,115p after Exane BNP Paribas upgraded the stock to "outperform" with a 6,000p price target. The brokerage cited undervalued shares, margin growth, and energy volatility upside as key drivers. Furthermore, market analysts consider the impending sale of DCC's technology business as a potential catalyst for value unlocking. The stock is up approximately 11% year-to-date. Ceres Power Holdings shares fell 9.3% to 312p, leading FTSE 250 losses after Peel Hunt downgraded the stock to "Sell" due to lowered 2026 revenue guidance of £45 million. While Peel Hunt slightly raised its target price to 200p, the median analyst target remains 460p, with the stock up 48% year-to-date.

TECHNICAL & TRADE VIEW – FTSE100

Daily VWAP Bullish

Weekly VWAP Bullish

Above 10500 Target 11000

Below 10300 Target 10000