The UK’s leading home construction firm is reducing its investments in new land acquisitions following elevated mortgage rates triggered by the Iran conflict. Barratt Redrow informed investors it will adopt a more cautious approach to land purchases, citing recent international tensions and their potential effects on borrowing costs and construction expenses. The company anticipates spending £700 million to £800 million on land this fiscal year, a decrease from the earlier estimate of £800 million to £900 million. This adjustment will secure 7,000 to 9,000 building sites, down from the prior range of 10,000 to 12,000. Additionally, the firm cautions that increased energy prices may drive up material costs. According to Deutsche Bank’s market strategist Jim Reid, the US stock market has seen its quickest recovery in the past 10 sessions since the early days of the COVID-19 crisis. He notes that expectations of reduced tensions between the US and Iran are boosting markets, with former President Trump indicating the situation may soon resolve. Oil prices have stabilized, with Brent crude at $95.26 per barrel, supporting gains in risk-sensitive assets. The S&P 500 rose 1.18% yesterday, nearing its all-time peak and achieving a 9.8% increase over the last 10 sessions. This pace surpasses the recovery following last year’s Liberation Day and is the fastest since April 2020 post-pandemic rebound. Scott Bessent has expressed confidence in a robust US economy this year, despite Middle East disruptions. He believes underlying strength could yield growth above 3% or 3.5%, even with the effects of the US-Israel conflict involving Iran. This contrasts with the International Monetary Fund’s recent downgrade of 2026 growth projections due to the war, warning that further escalation might cause a worldwide downturn. Bessent views the IMF and World Bank’s reduced growth estimates and elevated inflation outlooks as excessive. From our primary Middle East coverage: UK Chancellor Rachel Reeves is scheduled to meet US counterpart Scott Bessent in Washington, DC, today during the IMF and World Bank’s spring gathering. The Iran conflict’s repercussions will likely dominate discussions, where the two may differ in views. Bessent recently told the BBC that minor economic setbacks are acceptable for enduring global stability. Reeves, facing lowered UK growth predictions, has voiced dismay over the US approach in the region and its economic toll on British households and enterprises. Good morning, and welcome to our ongoing updates on business, financial sectors, and the global economy. Anticipation of a Middle East peace agreement is lifting markets, enabling stocks to offset declines since the Iran war started. The US market is approaching record levels, with the S&P 500 erasing all losses from late February. Asian markets, sensitive to energy fluctuations, are advancing; MSCI’s wide index of Asia-Pacific shares excluding Japan climbed 1.5% to a six-week high. Japan’s Nikkei has nearly recouped its drops since the US-Israeli operations commenced, and China’s CSI 300 reached its peak since March 3. Market sentiment has improved after March’s instability, fueled by potential progress in ceasefire negotiations between Washington and Tehran. IG market analyst Tony Sycamore describes April’s developments as leading to a remarkable rally: The Nasdaq has advanced for 10 straight sessions, its longest streak since late 2021, while the S&P 500 ended more than 10% above its March low of 6,316. Although tensions in the Strait of Hormuz persist, markets focus on future outcomes, pricing in a resolution to this geopolitical issue. For instance, in nuclear talks, Iran offers a five-year pause on uranium enrichment, against the US demand for 20 years; a midpoint compromise around 10 years seems feasible. Trump stated overnight that US-Iran discussions might restart in Islamabad soon, praising Pakistan’s military leader as facilitator. Meanwhile, disruptions continue in the Strait of Hormuz due to US blockades of Iranian ports. The US dollar hovers near six-week lows, following recent declines.
