The FTSE 100 opened 28 points higher at 10,679.5 on Tuesday, buoyed by strength in energy stocks and positive domestic house price data. NATO leaders gathered in Ankara for a two-day summit, while Brent crude futures rose 1.33% to $72.95 a barrel and US West Texas Intermediate (WTI) gained 1.33% to $69.46.
Sterling strengthened against both the dollar and the euro, trading at $1.3384 and €1.1707 respectively.
Gainers and Losers
Shell led the upside, rising 2.76% to £2,993, followed by Burberry Group (+2.24%), Unilever (+2.21%), Rentokil Initial (+2.05%), London Stock Exchange Group (+1.90%), and RELX (+1.88%). On the downside, Rio Tinto fell 2.02%, Antofagasta slipped 2.28%, Anglo American dropped 2.22%, Fresnillo declined 2.21%, Endeavour Mining lost 1.52%, and Diploma eased 0.78%.
Shell Expects Up to $6 Billion Cash Boost
Energy giant Shell is set to reverse a heavy $11.2 billion cash drain from the first quarter, expecting a cash inflow of between $1 billion and $6 billion in Q2. The turnaround follows a sharp swing in energy markets, driven by the US-Iran war which pushed Brent crude above $110 a barrel and caused major shipping disruptions in the Strait of Hormuz. Shell’s commodity trading division performed “significantly higher” than in Q1, while its refining margin surged to around $20 per barrel, up from $17, prompting the firm to run its refineries at virtually full capacity.
Keller Upgrades Profit Forecast
Engineering firm Keller upgraded its profit and revenue outlook after a surge in demand for data centres. The company said revenue and operating profit would be “materially ahead” of market estimates of £3.2 billion and £223 million respectively. CEO James Wroath attributed the strength to North American operations, which account for about 60% of group revenue, supported by increased activity in infrastructure and data centres.
UK House Prices Recover
House prices in the UK rose for the first time in four months in June. The Lloyds House Price Index posted a 0.2% monthly gain, taking the average property price to £299,330 from £298,812 in May. Annual growth edged up to 0.6% from 0.5%. Northern Ireland led with 7.4% annual growth, while London fell 1.1% year-on-year to £534,831. “Mortgage rates have eased from their recent highs, offering some encouragement to those considering a move,” said Amanda Bryden, Head of Mortgages at Lloyds.
Global Market Overview
In the US, the Nasdaq led gains with a 1.15% increase, the Dow Jones closed above 53,000 for the first time at 53,055 (+0.3%), and the S&P 500 added 0.7%. In Asia, Japan’s Nikkei 225 fell 2.2%, China’s Shanghai Composite dropped 1.26%, Hong Kong’s Hang Seng declined 0.67%, and Australia’s S&P/ASX 200 slipped 0.31%. India’s Nifty 50 and Sensex rose 0.17% and 0.13% respectively.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Always conduct your own research before making any financial decisions.