U.K. equities close higher, pound firms
The blue-chip index FTSE 100 gained 0.03% and the British GBP/USD added 0.5% against the dollar to 1.3566
U.K. equities closed higher on Tuesday, while the pound strengthened against the dollar, amid reports that the U.S. and Iran could be gearing up for another round of direct talks.
A Bloomberg report said officials are aiming to convene the next meeting before the two-week truce announced on April 7 lapses next week.
The blue-chip index FTSE 100 gained 0.03% and the British GBP/USD added 0.5% against the dollar to 1.3566. The DAX index in Germany advanced more than 1.2%, and the CAC 40 in France rose 1.1%.
Shares in AB Dynamics jumped after the vehicle testing and simulation group reported first-half results that aligned with its pre-release from last month. The stock gained nearly 4% in early London trading. The company posted sales of £49 million for the first six months of the year, down 16% year on year. Order intake of £64 million dropped 3% against the same period last year but rose 45% compared to the second half of 2025.
BP PLC said that its oil trading division is on track for an exceptional first quarter, driven by the surge in oil prices following the U.S.-Israeli campaign against Iran. The Middle East war has sent shockwaves through energy markets, with traders and refineries scrambling to secure alternative supplies after the effective closure of the Strait of Hormuz trapped vast volumes of Gulf oil. In its quarterly trading update, BP said its oil trading arm is expected to deliver exceptional results for the first three months of 2026, a sharp turnaround from a weak final quarter of 2025.
UK retail sales increased 3.6% year on year in March, accelerating from 1.1% growth in the same month last year and exceeding the 12-month average of 2.6%, according to new data on Tuesday, covering the period from March 1 to April 4.
Food sales drove the increase, jumping 6.8% compared with 1.6% growth in March 2025, while non-food sales edged up 0.9% from 0.6% a year earlier. The British Retail Consortium attributed the stronger food performance to an early Easter, which brought families together over the long weekend.