Finance
FTSE 100 flat as energy gains offset broader weakness
Published by Global Banking & Finance Review®
Posted on March 16, 2026
2 min readLast updated: March 16, 2026
Quick Summary
FTSE 100 was flat on March 16, 2026, as energy share gains—particularly BP and Shell—offset broad sector weakness amid rising Middle East tensions and ahead of key Bank of England rate vote.
FTSE 100 Holds Steady as Energy Rally Offsets Losses, Eyes on Bank of England
Market Overview and Key Drivers
March 16 (Reuters) - London's FTSE 100 was little changed on Monday, as gains in energy shares offset weakness in other sectors amid Middle East tensions, while investors awaited a rate decision from the Bank of England later this week.
As of 1011 GMT, the blue-chip FTSE 100 was 0.08% up after logging a second consecutIve week of losses.
Global Tensions and Energy Markets
Now in its third week, the U.S.-Israeli war on Iran continues to create turmoil across the Middle East and rattle global energy markets.
On Sunday, U.S. President Donald Trump insisted that nations heavily reliant on Gulf oil have a responsibility to help protect the Strait of Hormuz through which 20% of the world's energy transits.
Energy Sector Performance
Energy sector rose 1.2%, with oil major BP and Shell up more than 1%.
Sectoral Weakness
Travel and Leisure
On the flip side, the travel and leisure sector fell nearly 2%.
Metals and Mining
Metal miners were also among the top losers as gold prices were steady, and copper prices fell.
Mid-Cap and Broader Market Movements
Britain's mid-cap index was on track for deeper losses on Monday, down 0.6%, weighed down by weakness in industrials and financial stocks.
Central Bank Decisions in Focus
Investors' focus this week will be on interest rate decisions in the UK, the U.S., and Europe, with central banks holding their first full meetings since the start of the war and widely expected to pause further rate cuts for now.
Economists polled by Reuters mostly expect a 7-2 vote by the BoE's MPC to keep bank rate at 3.75%. Before the start of the war on February 28, a cut to 3.5% was seen as a near certainty.
Other Market Movers
Housing Market Data
Data on Monday showed that the asking price for British homes held steady in the four weeks to March 7.
Company Highlights
Standard Life
Among other movers, insurer Standard Life fell 2.4% despite reporting a better-than-expected rise in annual profit.
CAB Payments and StoneX Group
CAB Payments jumped 13.4% after the financial services firm StoneX Group proposed an all‑cash acquisition of the cross‑border payments provider at 241.4 million pounds ($319.7 million).
($1 = 0.7554 pounds)
(Reporting by Ragini Mathur in Bengaluru; Editing by Shinjini Ganguli)
Key Takeaways
- •Energy stocks rose ~1–2%, with BP and Shell leading gains amid Middle East turmoil
- •Travel, leisure and metal mining stocks fell sharply, weighing on broader markets
- •Investors await Bank of England’s rate decision later this week; a hold at 3.75% with a 7‑2 MPC vote is the consensus
Frequently Asked Questions about FTSE 100 flat as energy gains offset broader weakness
1Why was the FTSE 100 flat on March 16?
The FTSE 100 remained flat as gains in the energy sector offset weaknesses in travel, leisure, and mining stocks amid Middle East tensions.
2What impact did the Middle East tensions have on the market?
Ongoing U.S.-Israeli conflict with Iran created market volatility and supported energy sector gains due to concerns over oil supply routes.
3Which sectors performed best and worst in the FTSE 100?
Energy shares like BP and Shell outperformed, while travel, leisure, and metal mining sectors declined.
4What is the market expecting from the Bank of England this week?
Markets expect the Bank of England's MPC to keep the interest rate at 3.75%, with a likely 7-2 vote, pausing further rate cuts.
5Which stocks were major movers in the FTSE 100?
Standard Life fell 2.4% despite profit growth, while CAB Payments jumped 13.4% after a takeover proposal by StoneX Group.
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