London's FTSE 100 ticks higher as Shell lifts energy stocks
Market Performance and Sector Highlights
July 7 (Reuters) - The UK's FTSE 100 index inched up on Tuesday, as gains in energy stocks following Shell's upbeat second-quarter guidance offset weakness in precious metals miners.
The blue-chip FTSE 100 index rose 0.1% to 10655.88 points at close, while the midcap FTSE 250 fell 0.5%.
Energy Sector Drives Gains
Shell's Positive Outlook
• Energy stocks rose 2.8%, with Shell up 3.4% after the oil major raised its second-quarter gas production forecast and flagged significantly stronger gas trading compared to the previous quarter, while peer BP added 1.4%.
Oil Prices and Geopolitical Tensions
• Providing further support to energy shares on Tuesday, oil prices rose more than 2% 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]
Year-to-Date Performance
• However, a recent gradual decline of oil prices and increasing shipments through the strait have weighed on the energy-heavy index, with its 7.4% year-to-date gain lagging behind its broader European peer, the STOXX 600, which has risen 9.1%.
Other Sector Movements
Consumer-Focused Stocks
• Consumer-focused stocks were also among the top performers on the FTSE 100, with Diageo and Unilever rising 3.5% and 2.9% each.
Precious Metals Miners
• Conversely, precious metals miners fell 3.4%, leading sector-wise losses, despite gold prices steadying after declines earlier in the session. [GOL/]
Geopolitical and Domestic Developments
International Relations
• On the geopolitical front, talks to reach a final deal between Tehran and Washington will not 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 and Defense Spending
• 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 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 by Tharuniyaa Lakshmi and Avinash P in Bengaluru; Editing by Vijay Kishore and Joe Bavier)
