London stocks fell on Thursday 7 May 2026 as conflicting signals from Iran and the United States over a possible peace deal triggered sharp moves across global equities. The FTSE 100 was down around 0.4% by midday at 10,397, with the FTSE 250 modestly higher and the AIM index up around 0.7%.
The headlines moving markets
European markets opened higher on optimism about US–Iran peace talks before turning red at midday as conflicting messages emerged. Asia had run hard overnight: Japan's Nikkei 225 topped 62,000 for the first time, and South Korea's Kospi jumped 6% with Samsung crossing the trillion-dollar mark.
UK movers
On the FTSE 100, Flutter, Centrica and Shell led the losses. On the corporate-news side, Johnson Service Group launched a £55 million share buyback after first-quarter revenue rose modestly, Tritax Big Box REIT added £10.8 million of annual income year-to-date, and Coca-Cola HBC reaffirmed full-year guidance despite first-quarter revenue narrowly below forecast. Morgan Advanced Materials reiterated FY26 guidance and announced its CFO will retire.
| Index / instrument | Level (midday 7 May 2026) | Change |
|---|---|---|
| FTSE 100 | 10,397 | −0.40% |
| FTSE 250 | 22,975 | +0.62% |
| AIM | 814 | +0.67% |
| GBP/USD | 1.3617 | +0.17% |
| GBP/EUR | 1.1570 | +0.05% |
| Gold futures (USD/oz) | 4,749 | +1.17% |
What is driving the volatility
Three crosscurrents are pulling in different directions. The Iran conflict continues to push oil, gas and gold higher, supporting energy and miners but raising input costs everywhere else. UK borrowing costs hit their highest level since 1998 this week, tightening financial conditions and weighing on rate-sensitive sectors. A global AI capital-spending boom is supporting technology stocks worldwide — Intel rallied on reports Apple is exploring US chip-production partnerships with Intel and Samsung.
What investors should watch
For UK-focused investors, the next set of pivots are clear. The 20 May 2026 ONS CPI release will show whether the early effects of higher oil are starting to feed through. The MPC's 18 June rate decision will set near-term direction for sterling and the long end of the gilt curve. Corporate earnings continue rolling through May and any signs of margin compression from energy costs will be closely watched.
Disclaimer
This article is general information about market activity and is not investment advice. Past performance is not a reliable indicator of future results. The value of investments can fall as well as rise. Speak to a qualified, FCA-authorised adviser before making any investment decision.
Sources
- Yahoo Finance UK — Market data, 7 May 2026
- Sharecast / Hargreaves Lansdown — London open, midday and Asia reports, 7 May 2026
- UK Finance — Monthly Economic Review, May 2026
