London’s FTSE 100 nudged higher on Tuesday, outperforming weaker European and US markets, as gains in energy stocks helped offset pressure on miners and technology-linked shares.
The FTSE 100 closed up 14.11 points, or 0.1%, at 10,665.88. The FTSE 250 fell 125.40 points, or 0.5%, to 23,378.82, while the AIM All-Share dropped 9.56 points, or 1.2%, to 769.18.
Energy stocks were among the strongest performers, rising 2.8%, as Shell gained 3.4% after issuing an upbeat second-quarter trading update. The oil major raised its integrated gas production guidance and said gas trading results were expected to be significantly higher than in the first quarter, helped by volatility linked to the Middle East conflict.
Shell now expects second-quarter integrated gas output of 610,000 to 650,000 barrels of oil equivalent per day, ahead of previous guidance of 580,000 to 640,000 barrels. Sector peer BP also rose 1.4%.
Oil prices also supported the sector after reports of attacks on vessels near the Strait of Hormuz revived concerns over disruption to one of the world’s most important energy shipping routes. Brent crude for September delivery rose to USD73.88 a barrel, up from USD72.13 on Monday.
Precious metals miners weighed on the London market, despite gold steadying after earlier falls. Fresnillo dropped 4.5%, Anglo American fell 4.6%, Antofagasta declined 3.3%, and Endeavour Mining lost 2.7%. Gold traded at USD4,144.14 an ounce, slightly lower than USD4,148.94 on Monday.
Technology weakness also hit sentiment after Samsung Electronics fell 6.9% in Seoul despite forecasting a sharp increase in second-quarter profit. Kathleen Brooks, research director at XTB, said the market reaction could serve as a warning for US technology stocks, with investors questioning the sustainability of chip-sector earnings momentum.
On Wall Street, technology stocks came under pressure. Intel fell 11%, Applied Materials lost 9.8%, Marvell Technology dropped 9.7%, Lam Research declined 8.7%, Micron Technology shed 7.6%, Advanced Micro Devices fell 8.1%, and Nvidia slipped 1.5%.
In wider US trading, the Dow Jones Industrial Average was down 0.4%, the S&P 500 fell 0.7%, and the Nasdaq Composite declined 1.4%.
Across Europe, the CAC 40 in Paris closed 0.5% lower, while Frankfurt’s DAX 40 fell 1.4%.
Currency markets were firmer for sterling. The pound traded at USD1.3376 on Tuesday afternoon, up from USD1.3354 on Monday. Against the euro, sterling strengthened to EUR1.1704 from EUR1.1696. The euro traded at USD1.1427, up from USD1.1417, while the dollar eased against the yen to JPY161.91 from JPY162.34.
US Treasury yields moved higher, with the 10-year yield at 4.52%, up from 4.49% on Monday, and the 30-year yield at 5.03%, up from 5.00%.
Back in London, consumer-focused stocks also performed well. Diageo rose 3.5%, while Unilever gained 2.9%.
On the FTSE 250, Keller surged 23% after the geotechnical specialist contractor said it now expects 2026 revenue and underlying operating profit to be materially ahead of current market expectations of £3.15 billion and £223 million, respectively.
Victrex jumped 16% after the polymer solutions provider maintained full-year guidance and reported double-digit growth in both revenue and volumes during the third quarter of its financial year.
ITV fell 7.3% as investors continued to digest the proposed sale of its Media & Entertainment business to Sky. JPMorgan downgraded the stock to “neutral” from “overweight”, with analyst Daniel Kerven saying ITV had not secured the deal the bank had hoped for and describing the transaction as a “good deal for Sky”.
In UK economic data, house prices rose 0.2% in June, marking their first monthly increase since February, although Lloyds said the outlook remained clouded by broader economic uncertainty.
Geopolitics also remained in focus. Iran’s foreign minister said talks with Washington on a final agreement would not begin if US threats continued, following President Donald Trump’s warning that the US could “finish the job” if no deal is reached.
Meanwhile, Nato leaders began announcing arms deals worth tens of billions of dollars at the summit in Turkey, reinforcing efforts to increase European defence spending in response to US pressure.
The biggest FTSE 100 risers were Associated British Foods, Diageo, Shell, Babcock International and Compass Group.
The biggest fallers were Airtel Africa, Anglo American, Fresnillo, Halma and Diploma.
