FTSE 100 Dips Amid Middle East Ceasefire Doubts

The FTSE 100 fell 0.1% while the FTSE 250 dropped 1% as concerns over a Middle East ceasefire affected oil prices. The energy index rose 2%, but UK homebuilders felt pressure from rising bond yields and potential rate hikes. The UK housing market also showed signs of cooling.

The UK's FTSE 100 experienced a marginal dip while mid cap stocks saw a larger decline on Thursday, influenced by concerns over the Middle East ceasefire. Despite a robust session the previous day, uncertainty in oil prices weighed heavily on the market.

Ending the day at 10,603.5 points, the FTSE 100 dropped by 0.1% as the FTSE 250 fell by 1%. However, energy sector stocks experienced a 2% rise due to fears regarding restricted flows through the Strait of Hormuz amid the ongoing conflict.

The situation remains volatile, with Israeli strikes continuing in Lebanon and Iran casting doubts on the permanent peace talks. The UK housing market painted a bleak picture, facing economic uncertainty from rising mortgage rates, while Ceres Power Holdings shares took a hit, prompted by a downgraded stock rating to "sell."

(With inputs from agencies.)