UK Equity Indexes Rise on Consumer Stocks Ahead of US-Iran Talks
Market Movements and Key Drivers
Sept 22 (Reuters) - UK's equity indexes edged higher on Tuesday as gains in consumer stocks offset weakness in energy shares, while investors awaited potential US-Iran talks.
The blue-chip FTSE 100 index rose 0.20% to 10,760.01 points by 1011 GMT, while the midcap FTSE 250 climbed 0.65%.
Sector Performance Overview
Energy and Commodities
• Oil prices fell 1%, paring gains from earlier in the session, after Kyodo news reported that Iran has offered to reopen the Strait of Hormuz within seven days. Energy stocks were down 1.4%, with BP and Shell down 2.2% and 0.8%, respectively. [O/R]
• Investors are awaiting developments on potential US-Iran talks at the United Nations General Assembly this week after more supplies emerged through the strait over the weekend.
Metals and Mining
• Industrial metal miners also advanced 1.3% after copper prices rose. Copper miners Anglo American and Antofagasta climbed 2.7% and 3.4%, respectively. [MET/L]
Consumer and Defensive Stocks
• Defensive consumer stocks offered support to the main index with British American Tobacco and Unilever rising about 1% each.
Company Highlights
• Among other stocks, home improvement retailer Kingfisher climbed 9.2% after it raised its full-year profit guidance following a 9.9% increase in first-half earnings, and said it won market share in the UK, Poland and Spain.
• British engineering firm Smiths Group rose 6.5% after it beat expectations for its full-year operating profit and launched a process to sell its US asbestos liability.
• M&C Saatchi fell 6.1% after the advertising group's like-for-like net revenue fell 1.4% to £86.2 million, hurt by Middle East weakness and lower UAE advertising revenue.
• Cell and gene therapy manufacturer Oxford Biomedica slipped 1.4% after its gross margin fell to 37% from 43% due to product and client mix changes.
Economic Data and Outlook
• On the data front, Britain's government borrowed more than expected in August, official data showed, pushing the financial year-to-date deficit further above forecasts and adding pressure on finance minister John Healey ahead of his first budget.
(Reported by Anand Gopal in Bengaluru; Editing by Leroy Leo)