London's FTSE 100 edged higher on Tuesday, buoyed by a sharp rally in consumer goods giant Unilever that offset weakness in banking and energy shares. The blue-chip index rose 0.5% to 10,845.71 points, while the mid-cap FTSE 250 added 0.2%.

Unilever leads consumer stocks higher

Unilever was the standout performer, jumping 6.8% and on track for its biggest one-day gain in two years. The company raised its full-year forecast after reporting its strongest quarterly volume growth in over a decade, driven by sustained demand for brands such as Vaseline, Dove, and Cif. The results lifted the broader consumer-focused segment of the market, despite ongoing pressure on household budgets.

Read also
Markets
Dow Plunges 450 Points as Fed Decision and Chip Rout Rattle Markets
The Dow dropped 450 points as investors awaited the Fed's rate decision, chip stocks weakened on AI spending concerns, and oil jumped 7% on geopolitical tensions.

Banks and energy drag

Banking stocks fell 0.7%, led by a 5.1% drop in Barclays. The decline came even after the bank reported a better-than-expected 17% rise in first-half profit, suggesting investors had already priced in the strong results. Energy stocks also slipped 0.6% as oil prices fell more than 2% on growing hopes for a resolution to the US-Iran conflict. The losses in these sectors limited the broader market's advance.

Other notable movers

Coats, the thread maker, surged 7.1% to top the FTSE 250 after reporting higher first-half profit. Man Group shares climbed 4.6% to their highest level since 2010, following an 11% increase in assets under management that exceeded expectations. Canal+ rose 6.2% after the French pay-TV group posted a slight increase in first-half revenue, helped by its legacy businesses.

Central bank focus

Investors are now turning attention to policy statements from the US Federal Reserve and the Bank of England later this week. The outcomes could provide further direction for markets, particularly as recent rallies in US equities have been fueled by hopes of de-escalation in geopolitical tensions. Meanwhile, the ECB's recent rate decision highlighted the challenge central banks face in balancing inflation and growth.

The mixed session underscores the divergent forces at play in UK equities, with strong corporate earnings providing support even as cyclical sectors remain under pressure. The slide in oil prices and cautious central bank outlooks continue to weigh on sentiment.

This article is for informational purposes only and does not constitute financial advice.