The FTSE 100 returned from the Easter break with a constructive tone as investors looked beyond geopolitical uncertainty and focused on the parts of the UK market best placed to benefit from a shifting macro backdrop. Early gains in London were driven by strength in energy and consumer staples, sectors that tend to attract capital when global tensions raise questions over supply, pricing and the durability of earnings.
Attention centred on developments around the Strait of Hormuz and the latest US deadline for Iran, with oil prices firming as markets considered the implications for global supply. In that environment, the FTSE 100’s sector mix again worked to its advantage. The presence of major energy producers and defensive consumer businesses gives the index a degree of insulation that many other markets lack.
Although the index later trimmed some of its initial advance, the broader message from the session was still one of resilience. Sterling softened against the dollar and European markets were mixed, yet London remained supported by the quality and positioning of its large-cap constituents.
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