FTSE 100 Outperforms as Ceasefire Nerves Linger

European markets mixed as Middle East conflict impacts global trade

Apr. 9, 2026 at 5:53am

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An extreme close-up of the intricate mechanical components of a banking or financial institution, captured in a high-contrast, cinematic style that emphasizes the industrial nature of the modern economy.The machinery of global finance continues to churn amid the volatility of geopolitical conflict.Washington Today

London's FTSE 100 index is set to open higher on Thursday, outperforming its European peers as the impact of the Middle East conflict weighs more heavily on markets in Frankfurt and Paris. Futures indicate the FTSE 100 will open 0.5% higher, while the DAX and CAC are called to open lower. The FTSE 100's resilience is attributed to its constituents, including oil majors Shell and BP, which have helped offset the broader market volatility.

Why it matters

The FTSE 100's relative outperformance highlights the index's exposure to sectors like energy that have benefited from the geopolitical tensions, while the DAX and CAC have been more heavily impacted. This divergence reflects the differing compositions and sensitivities of the major European indices to the ongoing conflict in the Middle East.

The details

The FTSE 100 closed up 2.5% on Wednesday, while the DAX jumped 5.1% and the CAC surged 4.5%. However, Asian markets were largely weaker overnight, with the Nikkei 225, Shanghai Composite, and Hang Seng all declining. Oil prices rose, with Brent crude trading above $96 per barrel. The US dollar also strengthened against the pound and euro. Investors remain cautious as a fragile two-week ceasefire between the US and Iran shows signs of unraveling, with Israel bombing Lebanon and Washington contradicting some of Iran's demands.

  • The FTSE 100 closed up 260.09 points, 2.5%, at 10,608.88 on Wednesday.
  • Futures indicate the FTSE 100 will open 47.0 points higher, 0.5%, at 10,655.88 on Thursday.

The players

FTSE 100

The index of large-cap companies listed on the London Stock Exchange.

Shell

A major British oil and gas company that is a constituent of the FTSE 100.

BP

A British multinational oil and gas company that is also a constituent of the FTSE 100.

DAX 40

The benchmark stock market index in Germany, composed of the 40 largest German companies.

CAC 40

The benchmark stock market index of the 40 largest companies listed on the Euronext Paris stock exchange.

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What’s next

Investors will be closely watching for any further developments in the Middle East ceasefire negotiations, as well as economic data releases from the US and Germany on Thursday, which could provide more insight into the impact of the geopolitical tensions on the global economy.

The takeaway

The divergence in performance between the FTSE 100 and its European peers highlights the importance of sector composition and exposure to specific industries when assessing the resilience of stock market indices during periods of heightened geopolitical uncertainty.