Britain’s blue-chip index ascended to a three-week peak on Tuesday, buoyed by financial stocks, as declining oil prices and softening bond yields further bolstered risk appetite.
The FTSE 100 index rose 0.73% to 10,762.01 points, reaching its highest level since September 23 by 10:23 AM, while the midcap FTSE 250 was up 0.28%.
- Oil prices experienced a decline of 2% due to expectations of increased diesel supplies originating from Russia.
UK’s 10-year benchmark gilt yields decreased by almost 5 basis points, settling at 5.40%. - The broader banks sector was up 1.2%; NatWest advanced 2.6% after Barclays upgraded the stock to “overweight” from “equal-weight”.
- British finance minister John Healey will not elevate capital gains tax to match the level of income tax, as reported by the FT on Tuesday, referencing four sources.
- “John Healey will opt for a compromise Budget on Wednesday 28th October, with limited implications for the economy and the markets,” said Ruth Gregory in a note.
- BP opens new tab shares rose 1.3% to a six-month high after the energy giant estimated its third-quarter refining margins tripled from last year.
- Melrose Industries opens new tab led gains on the FTSE 100 with a 3.6% rise, after the GKN Aerospace owner said its Garden Grove plant in California was on track to resume operations by the fourth quarter.
- Premier Inn owner Whitbread opens new tab rose 2.2% to its highest since March after unveiling a five-year turnaround plan and recommending that shareholders vote against activist investor Corvex Management’s demand for a board seat.
- Among other sectors, healthcare gained 1.7%, and precious metal miners added 1.5%, tracking higher gold and silver prices.
