The FTSE 100 closed higher on Tuesday, supported by a sharp fall in oil prices and strong individual stock moves as investors positioned for Nvidia earnings and key US inflation data on Wednesday.
London’s blue-chip index gained 31.84 points, or 0.3%, to 10,886.16, while the FTSE 250 advanced 0.6% to 24,856.05 and the AIM All-Share added 0.2% to 815.48.
Melrose Industries led the FTSE 100 with a 10% surge after confirming it will not face a criminal investigation relating to the incident at its Garden Grove aerospace facility in California. The company is targeting late September for manufacturing to resume and plans a claims programme of up to $100 million.
Next gained 2.4% after Citigroup upgraded the retailer to ‘buy’, while AstraZeneca and International Consolidated Airlines were also among the day’s stronger blue-chip performers.
Oil provided another tailwind for equities, with Brent crude dropping to $89.31 a barrel from $92.74 on Monday amid speculation of progress towards easing tensions between the US and Iran.
US Treasury yields also declined, with the 10-year yield falling to 4.65% and the 30-year to 5.19%.
On the FTSE 250, Vistry jumped 16% after securing an initial £350 million grant award under the UK government’s £39 billion social and affordable homes programme. Jupiter Fund Management gained 4.3% after Berenberg initiated coverage with a ‘buy’ recommendation.
Attention now turns to the US, where Nvidia’s results will provide another major test of enthusiasm surrounding the AI investment boom. US PCE inflation and GDP data are also due on Wednesday.
