FTSE 100 Rises on Shell-Led Energy Gains Despite Precious Metals Dip
Market Overview and Key Drivers
July 7 (Reuters) - The UK's FTSE 100 index edged higher on Tuesday, as Shell-led gains in energy stocks offset weakness in precious metals miners.
The blue-chip FTSE 100 index rose 0.2% to 10,673.85 points by 1057 GMT, while the midcap FTSE 250 slipped 0.2%.
Energy Sector Performance
Shell and BP Lead Gains
• Energy stocks rose 1.9%, with Shell up 2.4% after the oil major raised its second-quarter gas production forecast and flagged significantly stronger gas trading compared to the previous quarter, while BP added 0.9%.
Oil Price Movements
• Oil prices also rose after reports of attacks on vessels near the Strait of Hormuz revived fears of disruptions to shipping through the critical energy transit route. [O/R]
Consumer and Other Stock Movements
Top Performing Consumer Stocks
• Consumer-focused stocks were also among the top performers on the FTSE 100, with Burberry, Diageo and Unilever rising 3% to 3.7% each.
Precious Metals and Mining Sector
Decline in Precious Metals Miners
• On the flip side, precious metals miners fell 1.9% as gold prices slipped, pressured by a stronger U.S. dollar. [GOL/]
Geopolitical and Economic Context
International Geopolitical Developments
• On the geopolitical front, talks to reach a final deal between Tehran and Washington won't start if U.S. threats continue, Iran's foreign minister said, following U.S. President Donald Trump's threat to "finish the job" if a deal is not made.
NATO Arms Deals
• NATO leaders began unveiling arms deals worth tens of billions of dollars in Turkey on Tuesday, driving home the message that they are heeding U.S. calls to spend more to defend Europe before a summit with President Donald Trump.
UK Housing Market Update
• Back home, British house prices rose 0.2% in June, their first monthly increase since February, though Lloyds said the outlook remained clouded by economic uncertainty.
Reporting Credits
(Reporting by Tharuniyaa Lakshmi in Bengaluru; Editing by Vijay Kishore)