The FTSE 100 edged higher on Tuesday as optimism over renewed Middle East diplomacy pushed oil prices lower, offsetting weakness in the energy sector and boosting mining stocks.
The blue-chip index closed 21.68 points higher (+0.2%) at 10,879.38, while the FTSE 250 gained 1.0% to 24,459.30 and the AIM All-Share rose 0.8%.
Investor sentiment improved after US Treasury Secretary Scott Bessent said a deal to reopen the Strait of Hormuz could be reached within days, easing concerns over global energy supplies. As a result, Brent crude fell towards US$80 a barrel, retreating from recent highs.
The weaker oil price weighed on energy majors, with BP falling 4.9% and Shell declining 2.5%.
BP’s shares slipped despite reporting better-than-expected second-quarter earnings. Underlying replacement cost profit before interest and tax climbed to US$10.3 billion, ahead of market expectations, while new chief executive Meg O’Neill outlined plans to simplify the portfolio, strengthen the balance sheet and improve operational performance.
Mining stocks provided the strongest support for the index as higher gold, silver and copper prices lifted the sector. Antofagasta surged 6.9%, Anglo American gained 5.5%, and Endeavour Mining added 3.4%.
On the FTSE 250, Travis Perkins jumped 18% after reporting better-than-expected interim profits and highlighting encouraging progress in its operational turnaround.
In contrast, Smith & Nephew was the biggest FTSE 100 faller, dropping 6.3% after lowering its full-year sales growth guidance following weaker-than-expected demand for hip and knee implants in the United States.
Wall Street also traded higher, with the Dow Jones rising 1.6%, the S&P 500 gaining 1.3% to a fresh record high, and the Nasdaq advancing 1.9% as investors positioned for another busy round of corporate earnings.
