The FTSE 100 was higher on Thursday as US tech stocks led a global equity market rally that shrugged off oil prices hitting $126.
Investors also took the Federal Reserve and Bank of England interest rate decisions and accompanying commentary in their stride.
Both kept rates on hold and adopted a wait-and-see approach, which was enough to keep the bulls happy. As one would expect, the Bank of England warned of potential inflation risks, but only one member voted to hike rates now.
The FTSE 100 rose 1.3% shortly after the announcement.
Oil
Notably, global equities rose despite oil prices briefly exceeding $126, as developments in the Middle East took a turn for the worse.
“A fresh fire has been lit under oil prices, amid reports that attacks on Iran could resume,” said Susannah Streeter, Chief Investment Strategist, Wealth Club.
“The US military is understood to be preparing for a resumption of military action, dashing hopes of a lasting ceasefire and sending worries of a severe energy crunch surging. Brent crude hit a wartime high of $126 a barrel, before declining as uncertainty swirled.”
But the market has a knight in shining armour in US tech stocks, which helped lift the market. Investors were prepared to look through interest rate uncertainty and surging oil prices and focus on bumper earnings from tech giants and ongoing momentum in AI.
Alphabet shares were 7% higher, while Amazon rose 2% in the US premarket. For now, at least, this is proving enough to drive stocks higher.
Whether this lasts for the rest of the session remains to be seen.
FTSE 100 movers
Unilever was the standout FTSE 100 performer, surging 11%, as plans to invest in data centres and clean energy made a typically dull stock constrained by regulations and limited revenue growth seem relatively exciting.
“Plans for a massive flood of investment at water utility company United Utilities has created an unusual level of excitement for a part of the stock market historically seen as pretty boring,” Russ Mould said.
“The plan to support areas like data centres, clean energy and new homes is being taken as a game changer by investors for now, although delivering on this big programme of spending and remaining on time and on budget is the big challenge for the company.”
Whitbread shares were lower on Thursday after the group released a trading statement and a turnaround plan in response to activist shareholder pressure.
Shares fell around 3% as investors turned their noses up at mixed guidance and inflation risks.
“Whitbread’s shares have been trading strongly ahead of results, after the company’s five-year plan was leaked to the press earlier this week,” said Derren Nathan, head of equity research, Hargreaves Lansdown.
“Confirmation of that plan, a respectable increase in last year’s operational performance, and an encouraging start to the new financial year has been offset by a higher inflation steer and anaemic guidance for profitability in Germany.”
Persimmon shares rose 2.4% after releasing an upbeat trading statement that revealed an improvement in sales rates.
“Persimmon’s momentum continues to build in the early months of 2026, with a strong, all-round sales performance despite current market challenges,” said Aarin Chiekrie, equity analyst, Hargreaves Lansdown.
“Average weekly net private sales rates were up 3% over the first four months, and alongside an increase in average selling prices, top-line growth looks in good shape.”