Today's UK Stock Market: Middle East Tensions Continue, Stock Market Rises; Bank of England Decision Approaching

Investing.com - UK stocks opened higher on Monday, recouping previous losses, with the British pound slightly up. Tensions in the Middle East remain high, and investors are watching this week’s Bank of England interest rate decision.

As of 08:09 GMT, the blue-chip FTSE 100 rose 0.5%, and the GBP/USD increased 0.2% to 1.3249.

Germany’s DAX index gained 0.2%, and France’s CAC 40 rose 0.2%.

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Latest Developments in Iran

U.S. President Donald Trump called on seven countries to assist Washington in safeguarding the Strait of Hormuz, a vital waterway carrying about one-fifth of global oil supplies, but did not specify if any countries agreed.

Oil tankers passing through the strait have been effectively shut down by Iran. The strait is surrounded on three sides by Iran, causing energy prices to surge and casting a shadow over the global economic outlook.

UK Market Overview

Citigroup expects the Bank of England’s Monetary Policy Committee to keep the bank rate steady at 3.75% at Thursday’s meeting, removing the expectation of a rate cut in April from its forecasts, as the UK faces another energy shock amid Middle East conflicts.

The bank now anticipates the rate-hiking cycle to end at 3.25%, with rate cuts expected in June and September, higher than previous terminal rate forecasts.

Standard Life PLC (LON:SDL) narrowed its full-year 2025 statutory after-tax loss from £1.08 billion a year earlier to £394 million. The company reported that hedge-related accounting costs of £604 million offset a 15% increase in adjusted operating profit.

These costs stem from the company’s plans to protect Solvency II capital from stock and interest rate fluctuations. The FTSE 100 is projected to rise 21.5% in 2025. Under IFRS, this is unfavorable for hedging, but cash generation remains solid.

Standard Life rebranded from Phoenix Group Holdings three weeks ago, with accounting impacts exceeding operational earnings during this period.

In other UK corporate news, Marshall PLC (LON:MSLH) reported on Monday that its pre-tax profit for the full year ending December 31, 2025, fell 55% to £17.7 million, despite revenue increasing 2% to £632.1 million. The UK building products manufacturer has cut dividends for the second consecutive year.

Basic earnings per share dropped 54% to 5.7 pence from 12.3 pence last year. Operating profit declined 41% to £32 million from £53.9 million. The company proposed a total dividend of 6.7 pence, down 16% from 8 pence a year earlier. Net debt increased from £133.9 million to £137.9 million.

According to Rightmove, UK house prices rose 0.8% in March, adding just over £3,000 on average to £371,042. However, prices remain 0.2% lower than the same period last year, down £744.

The monthly increase aligns with typical spring seasonal patterns, but the year-over-year decline reflects recent comments from UK housebuilders indicating that house price inflation has stalled.

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