The FTSE 100 ended the first trading session of May virtually flat at 10,380 points, as investors weighed NatWest’s cautious outlook and weaker oil prices against fading expectations of further Bank of England rate hikes. NatWest sank 3.5%, finishing at the bottom of the index, despite posting first-quarter pretax operating profit of £2.03 billion—above forecasts—and upgrading its income guidance. The lender nonetheless flagged economic risks linked to the conflict involving Iran.
Energy stocks also weakened, with BP down 1.9% and Shell off 0.9%, tracking a decline in crude prices after Iran submitted a new proposal to the US, even as the Strait of Hormuz remained closed. In contrast, Pearson advanced more than 3% after reporting a 4% rise in first-quarter sales, driven by growth in its Virtual Learning division, and reiterating its targets for 2026. Diageo gained 0.6% after US President Donald Trump announced partial tariff relief on Scotch whisky. UK markets will be shut on Monday for the bank holiday.
