FTSE 100 shares round-up: Rolls-Royce, IAG and banks rally
Amid hope that a peace deal can be agreed in the Middle East, investors are piling back into UK stocks. Graeme Evans reports.
6th May 2026 14:53
by Graeme Evans from interactive investor
Pearl 10X engines on the Rolls-Royce Boeing 747-200 Flying Test Bed. Credit: Flickr via Rolls-Royce.
Bargain hunting investors today added £10 billion to the value of Rolls-Royce Holdings (LSE:RR.) as stocks across the FTSE 100 index enjoyed a resurgence on the back of Middle East peace hopes.
Barclays (LSE:BARC), HSBC Holdings (LSE:HSBA) and International Consolidated Airlines Group SA (LSE:IAG)were among other beneficiaries as risk appetite returned after a report said the US and Iran were close to a permanent ceasefire.
- Invest with ii: Top UK Shares | Share Tips & Ideas | Cashback Offers
Brent crude slid 11% at one point to below $100 a barrel, while the safe haven US dollar weakened in a boost for Anglo American (LSE:AAL) alongside several stronger stocks in the mining sector.
The FTSE 100 index reached early afternoon up 253.61 points at 10,472.72, a 6% rise on the post-war low point of 23 March but short of the record 10,910 seen before the conflict began.
Wall Street benchmarks including the S&P 500 index are already back at all-time highs, having been given additional fuel by a revival of the AI trade and strong first-quarter earnings.
Long-term government borrowing costs fell back in today’s session after traders revised inflation and interest rate expectations on hopes of a reopening of the Strait of Hormuz.
- FTSE 100 winners: Diageo resumes recovery, Next upgrades again
- Sign up to our free newsletter for investment ideas, latest news and award-winning analysis
- FTSE 100 ex-dividend dates: May 2026
In the UK, this meant the 30-year bond yield eased to 5.68% after yesterday’s 28-year high of 5.77%, while the 10-year gilt dipped back below 5%.
The boost for mortgage affordability ensured an improved session for builders Persimmon (LSE:PSN) and Barratt Redrow (LSE:BTRW), having been the worst FTSE 100 performers since the start of the war.
Other rate-sensitive stocks on the front foot today included British Land Co (LSE:BLND) and Segro (LSE:SGRO), while Marks & Spencer Group (LSE:MKS) and JD Sports Fashion (LSE:JD.) rallied on hopes of support for consumer confidence.
The return of risk appetite meant a swift rebound for the banking sector after the heavy losses of yesterday caused by HSBC credit impairments in first-quarter results.
The Asia-focused lender rallied 71.2p to get back to where it started May at 1,350p, while NatWest Group (LSE:NWG) advanced 28.2p to 573.2p as the focus returned to Friday’s robust results.
- How this dividend hero delivers a market-beating yield
- eyeQ: watch out for this overvalued drug stock
- Tony Blair Institute’s radical proposal to overhaul state pension
Rolls-Royce shares resumed the recovery that had been taking shape since Thursday’s AGM update, when unchanged full-year guidance and an expectation for large engine flying hours at between 115% and 120% of 2019 levels provided reassurance.
The shares rose by more than 10% at one point today to reach 1,330p, which is within 100p of March’s record level. They later settled at 1,292.6p, a rise of 89.6p that compares with 1,100p before last week’s trading statement.
British Airways and Iberia owner IAG, which is due to publish results on Friday, rose 25.2p to 391.3p. It had been at 459p prior to the company’s annual results at the end of February.
These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided by third parties. The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.
Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company's or index name highlighted in the article.