Finance
London stocks rise after two-day slide; home builders slump
Published by Global Banking & Finance Review®
Posted on March 4, 2026
2 min readLast updated: March 4, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on March 4, 2026
2 min readLast updated: March 4, 2026
London’s FTSE 100 rebounded 0.7% on March 4 as heavyweight banks recovered amid Middle East turmoil, while homebuilders slumped due to leadership shifts and weak profit guidance.
March 4 (Reuters) - UK shares stabilized on Wednesday after a two-day slump due to an escalating war in the Middle East, while shares of home builders slumped following mixed results and leadership changes at Barratt Redrow and Vistry.
Heavyweight lenders, which took a beating on economic concerns stemming from the war this week, led the recovery with HSBC, Standard Chartered and Barclays up about 0.9% each.
The FTSE 100 index rose 0.7% at 1124 GMT after the escalation in the Middle East conflict over the weekend pushed the index almost 4% below its record high on Friday. The FTSE 250 midcap index also firmed 0.7%.
Despite continued military actions by Israeli and U.S. forces against Iran, prompting retaliatory strikes around the Gulf, investors found reassurance in U.S. President Donald Trump's promise of political risk insurance and financial guarantees for maritime trade in the Gulf.
It is one of the administration's most aggressive steps yet to contain soaring energy prices amid escalating conflict in the Middle East that has stoked worries about global inflation.
The latest survey showed UK's services sector grew robustly last month, while job cuts and price pressures persisted, a potential worry for the Bank of England ahead of this month's interest rate decision.
Investors see a one-in-three chance that the BoE would trim borrowing costs at its March 19 meeting.
Metro Bank rose 1.7% after the lender forecast a key profitability metric to more than double over the next six months and nearly triple over the next 18.
Barratt Redrow fell 1.2% after the UK's largest homebuilder said it had appointed Ventia CEO Dean Banks as its new chief executive, with David Thomas to retire after more than a decade at the helm.
Smaller peer Vistry's shares slumped nearly 20% to the bottom of the midcap index after it warned profit margins would fall in 2026 and that CEO and executive chair Greg Fitzgerald was to retire.
(Reporting by Medha Singh in Bengaluru; Editing by Vijay Kishore)
London stocks rebounded after falling due to Middle East conflict as heavyweight banks led the recovery, and investor sentiment was soothed by US political risk assurances.
Home builders' shares dropped on mixed company results, profit margin warnings from Vistry, and leadership changes at Barratt Redrow and Vistry.
The banking sector was key, with HSBC, Standard Chartered, and Barclays each rising about 0.9% during the session.
The conflict caused a sharp sell-off, pushing the FTSE 100 nearly 4% below its previous high due to concerns over energy prices and inflation.
Investors see a one-in-three chance that the Bank of England will lower borrowing costs at its March 19 meeting.
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