UK stocks pull back after rally on Middle East ceasefire doubts

April 9 (Reuters) - The main UK stock indexes eased ​on Thursday ‌after recording their strongest session in months a day earlier, as oil prices rebounded ⁠on growing doubts over a fragile ceasefire in ⁠the Middle East conflict.

The ​blue-chip FTSE 100 dipped 0.3% by 0927 GMT, while the midcap FTSE 250 slipped 1.1%.

* The FTSE 350 energy index climbed 1% as oil prices jumped ​almost 3% ‌on concerns that energy flows through the crucial Strait of Hormuz will remain restricted.

* Viability of the ceasefire is in question amid continued Israeli strikes on Lebanon, causing Iran to suggest it would be "unreasonable" to ​proceed with talks to forge a permanent peace deal.

* The FTSE 100 recorded ‌its biggest percentage gain in a year on Wednesday after the two-week ceasefire deal between the U.S. and Iran.

* ‌Rate-sensitive homebuilders came under pressure as bond yields edged higher. Two-year gilt yield , which reflects near-term rate expectations, rose to 4.25% after its largest one-day ​fall since March 2023.

* Traders were betting on 40 basis points of rate ‌hikes from the Bank of England by the end of this year, compared to 32 bps on Wednesday.

* Britain's housing market cooled noticeably last month ⁠as economic uncertainty ⁠stemming from the Iran war unnerved buyers who ‌face rising mortgage rates, a survey from the Royal Institution of Chartered Surveyors showed.

* Ceres Power ​Holdings fell ​7.7% after brokerage Peel Hunt downgraded the clean energy ‌technology developer's stock to "sell" from "hold."

* ME Group International climbed 3.7% after the vending machine operator secured a partnership with retailer ASDA to install Wash.ME laundry machines. (Reporting by Sruthi Shankar in Bengaluru; Editing by Sahal Muhammed)

Ceres Power

ME Group