As well as the conflict in the Middle East, the decline in the FTSE 100 comes amid worse than expected retail sales in Britain.

The amount British retailers sold remained unchanged last month, as a rise in petrol and diesel sales helped offset falls at department stores and food shops.

The latest ONS data showed that sales growth stood at 0pc across the retail sector, with food store sales declining 0.7pc. 

There was a 1.5pc drop in sales for non-store retailers, which include online shops and market stalls among others.

Lisa Hooker, an expert at consultancy PwC, warned that the March figures should be “taken with a pinch of salt” because Easter fell earlier than normal this year. The ONS tries to adjust for that. 

Sophie Lund-Yates, lead equity analyst at Hargreaves Lansdown, warned the retail data “doesn’t bode too well for some names in the grocery industry, with corporate updates expected next week”. 

She added: “The data also speaks to growing concerns about resilience in the wider retail sector. Mid-market names are in a very difficult position and pressure isn’t abating.”

Never the less, retail sales grew 1.9pc in the first quarter of 2023, which some economists took as a sign the UK is on its way out of recession: