The FTSE 100 ticked higher on Wednesday as lower oil prices helped lift sentiment and a sell-off in bond markets showed signs of easing.
After selling off into the close yesterday, the FTSE 100 recovered some of the lost ground on Wednesday, rising 0.2%.
“A rebound in Asian technology names as well as a drop in bond yields and oil prices helped set the scene for a positive start to proceedings as European markets began trading on Wednesday,” says Dan Coatsworth, head of markets at AJ Bell.
“Brent crude prices slumped overnight, sinking back below $100 per barrel on signs of improved flows from the Middle East, despite the ongoing conflict between the US and Iran, as well as a major release of emergency reserves in the US. “
News that oil flows from the Middle East are returning to pre-conflict levels will be music to investors’ ears.
Lower oil prices helped ease pressure in bond markets that had begun to concern equity bulls and weighed on markets in recent sessions. US bond yields have hit multi-decade highs this week, which filtered through into risk assets such as equities.
”Falling oil prices have sent ripples of relief through financial markets, with hopes rising that inflationary pressures may ease off a little,” explained Susannah Streeter, Chief Investment Strategist, Wealth Club.
A higher revision of 0.5% for UK GDP growth between April and June this year, up from 0.4%, would also have helped marginally lift the mood in UK markets on Wednesday.
Danni Hewson, AJ Bell head of financial analysis, said: “Good news about the resilience of the UK economy will help reinforce the ‘good vibes’ this government is keen to instil, but there’s no doubt that all of us, especially the chancellor, have one eye on the horizon.”
The FTSE 100 staged a strong rally early Wednesday, but it faded as the session progressed, dropping back below 10,700.
Utilities were among the companies holding on to gains, with National Grid leading the leaderboard at the time of writing, up 2.6%. SSE also added 2.4% after Andy Burnham announced a publicly owned body that would invest in the grid.
Severn Trent and United Utilities were both up more than 2%.
Miners Antofagasta and Rio Tinto were having a good session, with Anto jumping 2.6%. After more than tripling from 2025 lows to highs in early 2026, copper miner Antofagasta has traded sideways for much of the summer.
BP felt the pressure of falling oil prices and fell 1.8%. Sage was the FTSE 100’s biggest loser, giving up 2%.