Following last week’s bond-market turmoil, investors were reassured by a decline in bond yields and lower oil prices, which led to an increase in London’s FTSE 100 on Tuesday. Financial and consumer goods firms led the gains.
The blue-chip FTSE 100 index rose 0.5% to 10,554.51 points by 1030, while the midcap FTSE 250 also climbed 0.5%.
- Oil prices experienced a decline, attributed to robust crude exports from the Middle East and a G7 emergency stockpile release that alleviated supply concerns. However, ongoing security risks in the region constrained the extent of further losses.
- Government borrowing costs also eased after 10- and 30-year gilt yields surged to multi-decade highs last week, as investors assessed the implications of persistent inflation and ongoing debt concerns.
- Markets are currently reflecting a 90% probability of a rate increase by the Bank of England during its November meeting, as indicated by LSEG data.
- Among sectors, the prominent financials and consumer staples drove the gains on the FTSE 100.
- A report indicated that the government is contemplating postponing its plans to outline a strategy for increasing defence spending to 3% of GDP. Defence stocks experienced a decline, with BAE Systems, Babcock International, and Rolls-Royce falling between 1.1% and 3%.
- Informa opens a new tab as it leads the FTSE 100 gainers, experiencing a rise of 2.8%. The exhibitions group announced its intention to acquire events organiser Clarion for £2.24 billion and to separate its Taylor & Francis academic publishing division.
- “While separating off the academic publishing business means there is little else to support the business if live events struggle, it at least recognises where the real growth in the business will continue to be,” said Chris Beauchamp.
- On the FTSE 250, Clarkson climbed 6% after the shipping services provider forecast annual underlying pretax profit above market expectations.
- AstraZeneca opens new tab rose 2.2%. The drugmaker announced plans to invest over $1 billion in Massachusetts as a component of its extensive $50 billion investment strategy in the United States.
- Kenmare Resources surged 28% after the titanium minerals miner confirmed it had received a non-binding proposal from International Resources Holdings.
