The FTSE 100 index edged higher on Tuesday, rising 0.2% to 10,673.85 points, as a rally in energy stocks led by Shell offset weakness in precious metals miners. The midcap FTSE 250 slipped 0.2% during the session.
Energy Stocks Drive Gains
The energy sector was the top performer, climbing 1.9%. Shell advanced 2.4% after raising its second-quarter gas production forecast and indicating that gas trading would be significantly stronger than in the previous quarter. BP also rose 0.9%, contributing to the sector's strength. Rising oil prices further supported the energy rally.
Consumer Stocks Add Support
Consumer-focused companies also bolstered the FTSE 100. Burberry, Diageo, and Unilever each gained between 3% and 3.7%, helping the benchmark index stay positive despite headwinds in other sectors. Their performance complemented the energy sector's gains.
Precious Metals Miners Under Pressure
On the downside, precious metals miners fell 1.9%, tracking lower gold prices. A stronger US dollar weighed on bullion, limiting broader market gains. This weakness contrasted with the broader market's resilience.
Geopolitical Developments in Focus
Investors monitored geopolitical tensions. Iran's foreign minister stated that talks with the US would not begin if threats continued, following President Trump's warning to 'finish the job' if no agreement is reached. Meanwhile, NATO leaders announced tens of billions of dollars in arms deals in Turkey, highlighting increased defence spending ahead of a summit with Trump.
UK Housing Market Shows Modest Improvement
In domestic news, UK house prices rose 0.2% in June, the first monthly increase since February, according to Lloyds. The lender noted an improvement in the housing market but cautioned that the outlook remains uncertain due to ongoing economic headwinds.
Overall, strength in energy and consumer stocks helped the FTSE 100 hold gains, even as precious metals miners declined and geopolitical risks kept sentiment cautious. For broader market context, see our coverage of European stocks hitting new highs and oil price dynamics.
This article is for informational purposes only and does not constitute financial advice.
