FTSE 100 Rises as BP Results and Mining Stocks Drive Market Gains
Market Overview and Key Movers
Aug 4 (Reuters) - London's FTSE 100 rose on Tuesday, buoyed by strong results from blue-chip company BP and a surge in metal miners as commodity prices climbed.
The FTSE 100 index was up 0.3% at 10,886.98 points by 0905 GMT, while the midcap FTSE 250 inched up 0.1% to 24,244.35 points.
Major Stock Performances
BP Surges on Strong Earnings
• Shares of BP rose 1% after the oil major reported second-quarter profit that more than doubled to $5.73 billion and beat analysts' forecasts, thanks to higher energy prices, trading and refining margins.
HSBC Sees Mixed Results
• HSBC dipped 1.1%, having hit a record high earlier in the session, after the bank raised its net interest income target for this year.
Mining Stocks Rally
• Industrial metal miners such as Glencore and Rio Tinto added 4.1% and 2.7%, respectively, as copper prices touched two-month highs, supported by falling inventories. [MET/L]
Broader Market Trends
European and U.S. Markets
• The broader pan-European STOXX 600 index touched record highs and U.S. futures rose as an upbeat earnings season and renewed buying in big U.S. technology stocks offset uncertainty around the Middle East conflict.
FTSE 100 and FTSE 250 Performance
• The FTSE 100 is rebounding after three sessions of declines, and held below a record high hit last week. The FTSE 250 was trading at a near six-year high.
Oil Market Developments
• Oil prices rose on Tuesday as a diplomatic resolution to the U.S.-Iran conflict remained uncertain, with Iran's Foreign Ministry spokesman Esmail Baghaei saying no negotiations with the U.S. were taking place. [O/R]
Other Notable Movers
Travis Perkins Leads FTSE 250
• Among other movers, Travis Perkins jumped 18% after the building materials supplier reported higher first-half profit, helped by price increases and cost-cutting measures. It was the top gainer in the FTSE 250 index.
Segro Accepts Takeover Bid
• Segro gained 0.8% after the British warehouse landlord accepted a takeover bid by rival U.S. logistics firm Prologis in a deal worth up to £14.3 billion ($19.19 billion).
Smith+Nephew Drops on Forecast Cut
• Smith+Nephew dipped 6.9% after the medical products maker lowered its revenue growth forecast, hurt by continued weakness in its U.S. orthopaedics unit.
Reporting and Editing
(Reporting by Sruthi Shankar in Bengaluru ; Editing by Sonia Cheema)
