Today in the UK stock market: UK stocks opened lower, the pound fell to $1.33; conflict pushed oil prices above $100.

Investing.com - UK stocks continued their decline on Monday as rising tensions in the Middle East pushed oil prices above $100 per barrel. The UK market started the new week under pressure, while European markets also finished broadly higher. The GBP/USD exchange rate was at 1.33.

As of 08:36 GMT, the FTSE 100 index fell 1.6%, and the GBP/USD exchange rate dropped 0.8% to 1.3306. Germany’s DAX index declined 2.3%, and France’s CAC 40 fell 2.6%.

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Expert Opinions

Jefferies analysts are monitoring European and UK interest rate markets. Current pricing indicates the European Central Bank will raise rates more than 1.5 times by 2026, while the Bank of England has cut rates less than once.

The firm believes recent short-term rate fluctuations are mainly driven by position adjustments rather than changes in inflation expectations.

Jefferies maintains its baseline view that the ECB will not change policy this year. Despite recent oil price increases, the outlook leans toward potential rate cuts rather than hikes (if any action is taken).

Analysts see the oil shock as an external event. Unless crude prices stay above $100 per barrel for an extended period and a second-round effect occurs in the economy, it should not trigger a response from central banks.

As of 08:41 GMT Monday, Brent crude futures were trading at $104.31.

If oil prices fall back below $80 within three months, Jefferies does not expect any impact on the ECB’s policy decisions.

UK Market Overview

M&C Saatchi (LON:SAA) announced on Monday that CEO Zaid Al-Kassab will step down and leave the board on March 31, 2026, as part of a mutual agreement.

Currently non-executive chairman, Dame Heather Rabbatts, will serve as interim executive chair during the transition until a new CEO is appointed. The company said it will initiate a comprehensive search process to find a successor.

During the transition, Dame Heather will focus on implementing the company’s growth strategy and supporting senior leadership. An operational board composed of senior leaders will be established during this period.

GSK (LON:GSK) announced on Monday that it has entered into a licensing agreement with Italian pharmaceutical company Alfasigma S.p.A., granting the latter exclusive rights to develop, manufacture, and commercialize linerixibat globally. This investigational therapy is for treating pruritus associated with primary biliary cholangitis.

Linerixibat is an ileal bile acid transporter inhibitor currently under regulatory review in multiple markets, including the US, EU, UK, China, and Canada.

The drug has received orphan drug designation in the US, EU, and Japan, and priority review status in China for treating pruritus caused by primary biliary cholangitis.

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