UK blue-chip stocks fell sharply on Thursday after US inflation data weighed on risk appetite, even as Nvidia reported strong sales. Headline US inflation eased, but the Federal Reserve’s preferred PCE price index remained elevated at 3.7%. The reading fuelled concerns that monetary policy could stay tight for longer, pressuring equities.

A 60-day ceasefire memorandum of understanding between the US and Iran expired on Monday, and Donald Trump said he would not extend it. Brent crude rose above $91 per barrel amid heightened geopolitical tensions. Supply risks around the Strait of Hormuz remained in focus as the standoff continued.

The UK’s Financial Conduct Authority has suspended parts of its £9bn motor finance redress scheme in response to legal challenges from Volkswagen Financial Services, Mercedes Benz Financial Services and Crédit Agricole Auto Finance. The pause means captive lenders do not have to notify consumers by January 2027 that complaints will be rejected, nor calculate or pay compensation while the case is ongoing. The move follows an Upper Tribunal order, with hearings expected to run as late as February 2027, according to the FCA.