FTSE 100 Rises on Easing Oil Prices and Focus on Corporate Earnings
Market Overview and Key Drivers
By Tharuniyaa Lakshmi
July 21 (Reuters) - Britain's FTSE 100 edged higher on Tuesday as reports of U.S.-Iran mediation efforts pushed oil prices lower, while investors assessed a fresh batch of corporate earnings.
The blue-chip FTSE 100 index rose 0.2% to 10,552.50 points by 1000 GMT, while the midcap FTSE 250 climbed 0.5%.
Oil Prices and Geopolitical Developments
• Reports of diplomatic efforts between Washington and Tehran pushed oil prices off one-month highs, though concerns over energy supply disruption lingered after Yemen's Iran-aligned Houthis announced a blockade of Saudi Arabia on Monday. [O/R]
Impact on Commodities and Sectoral Performance
• Precious metal miners led sectoral gains, up 3.1%, tracking a rise gold prices as easing oil prices boosted expectations of a more accommodative U.S. Federal Reserve policy path.[GOL/]
Corporate Earnings in Focus
• Investors also sifted through a fresh batch of corporate earnings for signs of how the Middle East conflict is affecting companies.
Company Highlights
Compass Group
• Compass Group shares fell 1.6% despite the catering giant reporting third-quarter organic revenue growth of 7.1%.
IQE
• IQE shares rose 20.2% after the UK semiconductor wafer maker raised its full-year revenue growth forecast.
Mitie and OCS Group International
• Mitie jumped 38.8% to the top of the mid-cap index after the British outsourcer agreed to be acquired by rival OCS Group International in a deal valued at about 3.1 billion pounds ($4.17 billion).
Economic Data and Political Developments
• Data showed Britain's labour market stabilised in the three months to May.
• “Looking at the bigger picture, the jobs market appears to have stalled. However, the fall in vacancy numbers has slowed and wage growth is still, just about, outpacing inflation," said Danni Hewson, AJ Bell head of financial analysis.
• New Prime Minister Andy Burnham appointed former defence secretary John Healey as finance minister, just weeks after he resigned from the previous government with a stinging rebuke of how the Treasury had fallen short on defence spending.
(Reporting by Tharuniyaa Lakshmi in Bengaluru; Editing by Sahal Muhammed)
