By The UK’s FTSE 100 index edged higher on Tuesday as gains in energy stocks, led by Shell, offset weakness in precious metals miners.
Rising oil prices and strength in consumer-focused shares also supported the benchmark index, while the midcap FTSE 250 traded lower.
Energy stocks lead market gains
The blue-chip FTSE 100 index rose 0.2% to 10,673.85 points by 10:57 GMT.
In contrast, the midcap FTSE 250 index slipped 0.2%.
Energy stocks emerged as the strongest-performing sector during the session.
The sector climbed 1.9%, driven primarily by gains in Shell and BP.
Shell advanced 2.4% after the oil major raised its second-quarter gas production forecast.
The company also indicated that gas trading during the second quarter would be significantly stronger than in the previous quarter.
BP also moved higher, gaining 0.9% alongside broader strength in the energy sector.
Consumer-focused stocks add support
Consumer-facing companies were also among the top contributors to gains on the FTSE 100.
Burberry, Diageo and Unilever each rose between 3% and 3.7%, helping offset weakness in other sectors and supporting the broader market.
Their gains complemented the rally in energy stocks, allowing the benchmark index to remain in positive territory despite declines elsewhere.
Precious metals miners under pressure
On the downside, precious metals miners fell 1.9%.
The sector tracked lower gold prices, which came under pressure from a stronger US dollar.
The decline in bullion prices weighed on mining companies, limiting broader gains across the UK equity market.
Geopolitical developments remain in focus
Investors also monitored geopolitical developments during the trading session.
On Tuesday, Iran’s foreign minister said talks aimed at reaching a final agreement between Tehran and Washington would not begin if US threats continued.
The comments came after US President Donald Trump threatened to “finish the job” if an agreement was not reached.
NATO leaders began announcing arms deals worth tens of billions of dollars in Turkey on Tuesday.
The announcements underscored efforts by member nations to respond to US calls for increased defence spending ahead of a summit with President Donald Trump.
UK housing market records modest monthly gain
In domestic economic developments, British house prices rose 0.2% in June, marking their first monthly increase since February.
Lloyds said the latest increase reflected an improvement in the housing market during the month.
However, the lender also cautioned that the broader outlook remains uncertain due to ongoing economic uncertainty.
Overall, strength in energy stocks and consumer-focused companies helped the FTSE 100 remain higher, even as weaker precious metals miners and cautious sentiment surrounding global geopolitical developments continued to influence investor positioning.
The post FTSE 100 rises as Shell boosts energy stocks despite mining weakness appeared first on Invezz
