25.03.202609:04:24UTC+00FTSE 100 Up for 2nd Day

The FTSE 100 rose 0.9% on Wednesday after a 0.7% advance in the previous session, extending its rebound as oil prices eased and hopes grew for a de-escalation of tensions in the Middle East. With crude falling below $100 per barrel for the first time since Monday, inflation worries have moderated, putting the index on course for a second consecutive day of gains.

However, the UK benchmark is underperforming broader European markets because of its heavy weighting in energy stocks, with Shell and BP declining in tandem with the pullback in oil prices. Defensive consumer staples such as Reckitt Benckiser and Unilever are also weaker as investors rotate into riskier assets. In contrast, banks and mining stocks are leading the advance. In macroeconomic news, UK inflation remained unchanged at 3% in February, though the figures are widely viewed as outdated given that they precede the latest flare-up in the Middle East.