FTSE 100 Closes at Five-Week High; BP Chairman Removed Limits Gains
The FTSE 100 closed up 0.24% at 10,491.39 on Tuesday, its highest level since 21 April, gaining 2.9% in the six trading sessions since 15 May. The FTSE 250 ended up 0.7% at 23,327.49; the AIM all-share rose 1.5%. Oil majors led early gains as Brent rebounded but BP’s 4% drop after the removal of Chairman Albert Manifold capped the index. Shell rose on the higher oil price. Sterling firmed to $1.3489 against the dollar. The two-year and ten-year gilt curve is now pricing in further Bank of England rate cuts as the imported-inflation outlook eases on lower oil prices.
AJ Bell investment director Russ Mould: “The FTSE 100 was playing catch-up to European counterparts on Tuesday after progress on a potential agreement between the US and Iran. However, continued doubts about the potential for a deal and an overnight pre-emptive US strike on Iran mean any euphoria is being kept in check. It’s telling that other European indices dipped slightly after the gains they enjoyed yesterday when trading in London was suspended for the bank holiday.” The biggest FTSE 100 fallers were Melrose Industries (-5.4%), BP (-4.0%), Flutter Entertainment (-3.4%), Autotrader (-3.4%) and Admiral Group (-3.2%). The Reeves cost-of-living package is now landing into a measurably easier macro backdrop than the brief was originally drafted for.