Russ Mould, investment director at AJ Bell, said: “The market appears increasingly optimistic that an end to the war in Iran is in the offing as big gains in the US and Asia were matched in Europe on Wednesday morning.
“The FTSE 100 is now firmly ensconced above the 10,000 mark and nearly five per cent above its lows last week while Brent crude oil prices have dropped below $100 per barrel.
“European gas prices are in retreat and government bond yields are also easing back.
“President Trump’s messaging that the war will be over in a couple of weeks and the clearest indication yet that Iran also wants to end the fighting are being seized on by investors.
“Eyes are likely to be glued to television screens later when Trump is set to address the American people.
“Gold prices have moved higher. While demand for the precious metal’s safe haven qualities may diminish if the conflict ends, expectations for interest rate cuts continue to shift as markets weigh the next twists and turns in the conflict.
“It’s likely that even a swift resolution wouldn’t mean an immediate return to normality and inflationary pressures are likely to outlast the conflict.
“This is evident in the Food and Drink Federation in the UK tripling its forecast for food price inflation to reach nine per cent by the end of the year.
“The biggest gainers in London included stocks with links to the aviation sector, miners and financial stocks.”
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