The FTSE 100 moved higher on Thursday after early losses faded, with investor sentiment supported by dovish comments from leading central bankers at the ECB Forum on Central Banking in Sintra. The more supportive monetary policy outlook helped offset pressure from falling oil prices as optimism grew over progress in talks between the United States and Iran.
By 07:23 GMT, the FTSE 100 was up 0.14%, while Germany’s DAX gained 0.09% and France’s CAC 40 advanced 0.50%. Sterling strengthened 0.28% against the U.S. dollar to 1.3314.
Central bank comments lift market sentiment
Comments from policymakers helped improve investor confidence after senior officials signalled that interest rates may remain on hold.
Federal Reserve Governor Kevin Warsh, European Central Bank President Christine Lagarde and Bank of England Governor Andrew Bailey all adopted a more accommodative tone during a panel discussion in Sintra. Jefferies strategist Mohit Kumar described Bailey as “probably the most clear,” arguing the UK is experiencing a “soft patch” where higher mortgage rates have “effectively tightened” monetary policy without the need for further interest rate increases.
Lagarde also pointed to the sharp fall in energy prices, noting oil “was at $120 a few weeks ago and is now close to $70.”
Jefferies said the discussion “supports our view of no (further) hikes this year from the Fed, ECB or BoE.”
Oil prices fall as Iran talks make progress
Energy markets remained under pressure after fresh signs of diplomatic progress between Washington and Tehran.
Iran’s Deputy Foreign Minister Kazem Gharibabadi criticised a U.S.-led regional security summit in Bahrain, writing on X that “Hormuz is defined under Iran’s command, not CENTCOM” and that a military summit “cannot establish legal order and security for the Persian Gulf.”
Meanwhile, Qatar and Pakistan said in a joint statement that “positive progress was made” during indirect talks in Doha between U.S. and Iranian officials, with further negotiations expected after the funeral processions for Iran’s former Supreme Leader.
U.S. President Donald Trump told reporters that “the denuclearization of Iran is moving along well” and described the Doha discussions as “very good.” Vice President JD Vance also said “talks are going well,” while noting that negotiations over Iran’s nuclear programme were still at an early stage.
Brent crude declined 1.23% to $70.69 a barrel, while WTI crude fell 1.3% to $67.69. Gold futures slipped 0.20% to $4,074.67 an ounce, although spot gold rose 0.76% to $4,062.08.
Chip stocks pressured by Meta AI plans
Jefferies also noted that semiconductor shares came under pressure after reports that Meta plans to monetise excess artificial intelligence computing capacity through a cloud offering.
The development weighed on Asian technology stocks overnight, with South Korea’s KOSPI among the weakest-performing major indices.
Currys gains after strong annual results
Among UK-listed companies, Currys (LSE:CURY) traded higher after reporting an 18% increase in annual profit and saying trading had started strongly in the new financial year, supported by sales growth across both its UK and Nordic businesses.
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