FTSE 100 Dips as Traders Brace for Rate Hike

2026-03-12 09:04 By Joana Ferreira 1 min. read

London’s FTSE 100 dropped 0.6% to 10,290 on Thursday, edging closer to its lowest level since late January, as investors returned to betting on a Bank of England rate hike this year amid rising energy prices linked to the Middle East conflict.

Airlines were among the weakest performers, hit by international travel disruption and higher fuel costs, while exporters faced renewed pressure from resurfacing tariff concerns.

Also, some of the largest movements in the index were driven by stocks going ex-dividend, including HSBC, Schroders, LondonMetric Property, Tritax Big Box REIT, and Entain.

Travel operator On the Beach saw shares tumble as much as 14% to levels not seen since late 2024 after withdrawing its guidance due to Middle East–related travel market disruption.

Events company Informa fell 2%, noting that its 2026 outlook remains unchanged and that trading is proceeding as planned despite its exposure to the region.



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