FTSE 100 Gains Driven by Glencore, Next Earnings and Iran Deal Prospects
Market Overview and Key Drivers
Aug 5 (Reuters) - London's FTSE 100 rose on Wednesday, driven by strong results from Glencore and Next as well as growing expectations for a U.S.-Iran peace deal that could ease concerns about oil-driven inflation.
The blue-chip FTSE 100 index rose 0.12% to 10,892.23 points by 0847 GMT, while the midcap FTSE 250 climbed 0.6% to 24,608.02 points, on track to notch another closing record high.
Company Performance Highlights
Glencore Earnings Boost
• UK-listed shares of Glencore rose 3.3% after the Swiss miner beat forecasts with an 86% leap in first-half earnings, driven by its commodity trading business as conflict in the Middle East fuelled market volatility. It also said it was planning a secondary listing in Australia.
Industrial Metal Miners and Copper Prices
• Other industrial metal miners such as Rio Tinto and Antofagasta also rose as copper prices ticked up, helped by waning inventories and improving risk sentiment. [MET/L]
Next's Profit Outlook
• Clothing retailer Next jumped 6.9%, becoming the top gainer in the FTSE 100, as it lifted its annual profit outlook for the third time this year, after warm weather helped it beat second-quarter full-price sales estimates.
HSBC's Performance
• HSBC dipped 3.2%, having hit a record high earlier in the session, after the bank raised its net interest income target for the year.
Macroeconomic and Geopolitical Factors
Oil Prices and Iran Deal Prospects
• Oil prices inched higher after a 5% slump on Tuesday as investors waited to see if efforts to end the Iran war and restore traffic through the blockaded Strait of Hormuz were making progress. [O/R]
• U.S. President Donald Trump said his administration had "very good discussions" with Iran during all-day negotiations.
UK Treasury Initiatives
• Britain's Treasury is considering using flexibility within the government's fiscal rules to raise billions of pounds in additional borrowing for investment in infrastructure, housing and business support, The Times reported, citing comments from Finance Minister John Healey.
Other Notable Movers
4imprint's Strong Forecast
• Advertising and marketing firm 4imprint climbed 9.7% after it posted full-year forecasts above estimates, becoming the biggest gainer on the FTSE 250 index.
Reporting Credits
(Reporting by Anand Gopal in Bengaluru; Editing by Vijay Kishore)
