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FTSE 100 up 1.6%, FTSE 250 up 1.9%
Trump hints at end to U.S.-Israeli conflict with Iran
Oil prices slump nearly 7%
BoE rate expectations shift amid inflation concerns
March 10 (Reuters) - London's FTSE indexes rose on Tuesday, after three sessions of declines, as U.S. President Donald Trump suggested that the Middle East war could be close to ending.
The blue-chip FTSE 100 .FTSE gained 1.6% by 1015 GMT, while the mid-cap FTSE 250 .FTMC added 1.9%. If both indexes hold their gains, it would mark their biggest one‑day rise in nearly a year.
Trump's comments on Monday led to a nearly 7% slump in oil prices, even as Iran's Revolutionary Guards said they would not allow "one litre of oil" to be shipped from the Middle East if U.S. and Israeli attacks continue. O/R
Most major British subsectors were in the green, except the energy index .FTNMX601010, which fell 2.1%, with oil majors Shell SHEL.L down 1.7% and BP BP.L sliding 2.9%.
Meanwhile, interest rate expectations stayed volatile, with traders now evenly split on whether the Bank of England will cut interest rates at least once this year after briefly pricing in a hike on Monday, according to LSEG data.
Standard Chartered and Morgan Stanley delayed their forecast for a rate cut to the second quarter, amid inflation risks from the Middle East conflict that pushed the FTSE 100 4.6% below its record high in late February.
The BoE is expected to deliver its interest rate decision on March 19.
Meanwhile, British consumer spending grew slowly last month as households turned more pessimistic about the economic outlook amid inflation worries, surveys from Barclays and the BRC showed.
In corporate news, Persimmon PSN.L rose 6.3% after the home builder said it expects to deliver more homes in 2026, with profits likely at the top end of estimates.
Domino's Pizza DOM.L rose 3% as the fast-food chain bets on its new fried chicken brand to drive growth beyond pizza.
(Reporting by Tharuniyaa Lakshmi in Bengaluru; Editing by Harikrishnan Nair)
((tharuniyaa@thomsonreuters.com))
