London Blue Chips Finish Slightly Higher
The UK’s FTSE 100 closed marginally higher on Tuesday, supported by gains in energy shares after Shell issued stronger second-quarter guidance. The blue-chip index rose 0.1% to 10,655.88 points, while the midcap FTSE 250 slipped 0.5%.
Shell Guidance Boosts Energy Stocks
Energy stocks advanced 2.8%, with Shell rising 3.4% after the oil major lifted its second-quarter gas production forecast and pointed to significantly stronger gas trading compared with the previous quarter. BP also gained 1.4%.
Oil Prices Add More Support
The sector received an additional lift as oil prices rose more than 2%. Reports of attacks on vessels near the Strait of Hormuz revived concerns about possible disruptions to shipping through one of the world’s most important energy transit routes.
FTSE Still Trails Broader Europe
Despite Tuesday’s support from energy stocks, the FTSE 100 has lagged its broader European peer this year. The index is up 7.4% so far, compared with a 9.1% rise for the STOXX 600. A gradual decline in oil prices and rising shipments through the Strait of Hormuz have weighed on the energy-heavy London benchmark.
Consumer Names Also Advance
Consumer-focused stocks were among the strongest performers on the FTSE 100. Diageo rose 3.5%, while Unilever gained 2.9%, helping offset weakness in other parts of the market.
Precious Metals Miners Lead Losses
Precious metals miners fell 3.4%, making the sector the weakest area of the session. The decline came even as gold prices steadied after earlier losses.
Iran and U.S. Tensions Remain in Focus
Geopolitical risks continued to shape market sentiment. Iran’s foreign minister said talks aimed at reaching a final deal between Tehran and Washington would not begin if U.S. threats continue. The remarks followed President Donald Trump’s warning that the U.S. could “finish the job” if no deal is reached.
NATO Announces Major Arms Deals
NATO leaders began outlining arms agreements worth tens of billions of dollars in Turkey on Tuesday. The announcements were intended to show that allies are responding to U.S. calls to increase spending on Europe’s defense ahead of a summit with Trump.
UK House Prices Rise in June
In domestic economic news, British house prices increased 0.2% in June, marking their first monthly rise since February. Lloyds said the outlook for the housing market remains uncertain because of broader economic pressures.
