12.03.202609:04:17UTC+00FTSE 100 Dips as Traders Brace for Rate Hike

London’s FTSE 100 fell 0.6% to 10,290 on Thursday, moving closer to its lowest level since late January, as investors once again priced in the likelihood of a Bank of England rate hike this year amid rising energy prices tied to the Middle East conflict. Airlines were among the weakest performers, pressured by international travel disruption and higher fuel costs, while exporters came under renewed strain on the back of resurgent tariff concerns.

Some of the index’s largest moves were driven by stocks trading ex-dividend, including HSBC, Schroders, LondonMetric Property, Tritax Big Box REIT, and Entain. Travel operator On the Beach slumped as much as 14% to its lowest levels since late 2024 after withdrawing its guidance due to Middle East–related disruption in the travel market. Events group Informa slipped 2%, but said its outlook for 2026 remains unchanged and that trading is progressing in line with expectations despite its regional exposure.