The FTSE 100 opened 40.58 points higher at 10,898.28 on Tuesday, buoyed by renewed hopes of a diplomatic resolution between the United States and Iran. The positive sentiment was further supported by robust corporate earnings from BP and HSBC, along with a flurry of other company updates.
Market Movers
Brent crude futures climbed 1.46% to $84.99 per barrel, while US West Texas Intermediate (WTI) rose 0.70% to $80.90. Sterling edged lower against the dollar, slipping to $1.3423 from $1.3425, and fell to €1.1664 against the euro from €1.1669.
Top Gainers
Antofagasta led the risers, surging 3.10% to 3,793p. Babcock International Group and BAE Systems both advanced 2.66%, reaching 1,177p and 2,200p respectively. Anglo American gained 2.54% to 3,799p, Rio Tinto added 2.30% to 7,252p, and Endeavour Mining rose 2.22% to 3,595p.
Biggest Losers
On the downside, Smith & Nephew plunged 5.76% to 1,128p. Coca-Cola Europacific Partners fell 4.16% to 7,725p, and 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 reported a sharp increase in second-quarter earnings, with underlying replacement cost profit surging to $5.7 billion from $2.4 billion a year earlier and $3.2 billion in the first quarter. Higher oil and gas prices and stronger refining margins offset lower production. Reported profit attributable to shareholders rose to $3.9 billion from $1.6 billion. Operating cash flow jumped 73% year-on-year to $10.9 billion, and net debt was reduced to $22.3 billion from $25.3 billion at the end of March.
HSBC Beats Forecasts
HSBC announced a fresh $1 billion share buyback after first-half profit rose 23% to $19.5 billion, beating analyst expectations. Second-quarter profit jumped 60% to $10.1 billion, surpassing the consensus estimate of $9.51 billion. The result was flattered by a $2.1 billion charge related to Bank of Communications taken a year earlier.
Travis Perkins Cuts Dividend
Travis Perkins reduced its dividend from 4.5p to 4p after warning of a slump in construction activity and price uncertainty. The company reported a 1.8% drop in first-half revenue to £2.3 billion. Shares have fallen 10% since the start of the year.
Global Market Overview
In the US, the Dow Jones rose 1.3%, the S&P 500 climbed 1.5%, and the Nasdaq jumped 2.1%, supported by lower oil prices, stronger manufacturing data, and easing concerns about a hawkish Federal Reserve. In Asia, Tokyo’s Nikkei 225 rose 0.32% to 63,957.53, China’s Shanghai Composite gained 0.33%, while Hong Kong’s Hang Seng declined 0.77%. 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.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Always conduct your own research before making financial decisions.