"The London stock market has fallen deep into the red, a gloomy backdrop for the chancellor's spring forecast at 12.30pm GMT. The FTSE 100 index lost about 280 points on Tuesday morning, falling to 10,501 in a 2.6% drop and leaving it on track for its worst day in 11 months since Donald Trump's liberation day tariff shock of April 2025."
"Brent crude, the global oil benchmark, jumped a further 5.5% to $82.02 a barrel on Tuesday. The month-ahead UK gas price has jumped by 30%, to 148p a therm, adding to Monday's 44% surge to reach almost double its levels last week and a three-year high."
"Soaring global energy prices will jeopardise Rachel Reeves's plan to conquer inflation and revive sluggish UK economic growth, economists have warned. The City anticipates that an interest rate cut is much less likely, given fears of an inflation spike."
Middle East tensions have caused severe disruption across global financial markets for a second consecutive day. The FTSE 100 index fell 2.6% to 10,501, marking its worst day in 11 months. Asian markets experienced similar declines, with Japan's Nikkei down 3.1% and South Korea's Kospi dropping 7.2%. Energy prices surged dramatically, with Brent crude rising 5.5% to $82.02 per barrel and UK gas prices jumping 30% to 148p per therm, reaching three-year highs. Sterling weakened to $1.33 against the US dollar, while government borrowing costs increased across all bond maturities. These developments threaten inflation control and economic growth objectives, with market expectations now showing only a 29% probability of a Bank of England interest rate cut at its next meeting.
Read at www.theguardian.com
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