The FTSE 100 opened 40.58 points higher at 10,898.28 on Tuesday, buoyed by signs of diplomatic engagement between the United States and Iran. The positive sentiment also lifted oil prices, with Brent crude futures rising 1.46% to $84.99 per barrel and US West Texas Intermediate (WTI) gaining 0.70% to $80.90 per barrel.
Sterling edged lower against the dollar, slipping to $1.3423 from $1.3425 in the previous session, and fell to €1.1664 against the euro from €1.1669.
Gainers and Losers
Mining stocks led the gains, with Antofagasta climbing 3.10% to 3,793p. Babcock International Group advanced 2.66% to 1,177p, while BAE Systems also gained 2.66% to 2,200p. Anglo American rose 2.54% to 3,799p, Rio Tinto added 2.30% to 7,252p, and Endeavour Mining increased 2.22% to 3,595p.
On the downside, Smith & Nephew plunged 5.76% to 1,128p, leading the decliners. Coca-Cola Europacific Partners fell 4.16% to 7,725p, while Admiral Group declined 2.00% to 3,726p. Next slipped 1.24% to 14,715p, Coca-Cola HBC eased 0.94% to 4,838p, and Games Workshop Group edged 0.57% lower to 19,120p.
BP Doubles Profit
BP more than doubled its second-quarter profits as higher oil and gas prices and stronger refining margins offset lower production. Underlying replacement cost profit rose to $5.7 billion from $2.4 billion a year earlier and $3.2 billion in the first quarter. Reported profit attributable to shareholders increased to $3.9 billion from $1.6 billion.
Operating cash flow climbed 73% year-on-year to $10.9 billion, despite a $1 billion working capital build. Net debt was reduced to $22.3 billion from $25.3 billion at the end of March, slightly exceeding guidance.
HSBC Beats Profit Forecasts
HSBC announced a fresh $1 billion share buyback after first-half profit rose 23% and beat forecasts. The company reported pre-tax profit of $19.5 billion for the first six months of 2026, up 23% from a year earlier. Profit for the second quarter jumped 60% to $10.1 billion, beating the consensus estimate of $9.51 billion. The jump was flattered by the $2.1 billion Bank of Communications charge taken a year earlier.
Travis Perkins Cuts Dividend
Travis Perkins cut its dividend from 4.5p to 4p after the building materials firm warned of a slump in construction and price uncertainty. “The UK construction sector remains subdued with activity levels remaining depressed during the first half,” the company said. “Given wider geopolitical and macroeconomic events, building materials price inflation remains hard to forecast. Against this backdrop, the group remains focused on improving what lies within its control.”
Travis Perkins posted a 1.8% drop in revenue for the first six months of the year to £2.3 billion. The stock is down 10% since the start of the year.
Global Market View
In the US, the Dow Jones rose 1.3%, the S&P 500 climbed 1.5%, and the Nasdaq jumped 2.1%. Lower oil prices, stronger US manufacturing data, and fading concerns about a hawkish Federal Reserve helped the S&P close near its record high.
In Asia on Tuesday, Tokyo’s Nikkei 225 rose 0.32% to 63,957.53, while China’s Shanghai Composite gained 0.33%. Hong Kong’s Hang Seng declined 0.77%, and South Korea’s Kospi edged higher by 1.62%. In India, both the Nifty 50 and the Sensex fell by 1.18% and 0.39%, respectively.
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