London’s FTSE 250 Midcap Index Nears Three-Month High amid Market Gains
UK Stock Market Performance and Key Drivers
May 26 (Reuters) - UK shares rose on Tuesday, with the FTSE 250 hitting a near three-month high, as investors returned from a long weekend and caught up on signs of progress in talks to end the U.S.-Iran conflict.
The blue-chip FTSE 100 rose 0.6% to 10,533.50 points by 1020 GMT, touching a one-month high, while the FTSE 250 climbed 0.9% to its highest since March 3, and on track for a fourth straight session of gains.
Geopolitical Developments Impacting Markets
• U.S. and Iran signalled progress on a memorandum of understanding that could halt conflict between the two nations and restart shipping through the blockaded Strait of Hormuz.
• U.S. Secretary of State Marco Rubio, however, said that negotiating a deal with Iran could "take a few days" after the latest U.S. strikes in southern Iran.
Sector Highlights and Market Movers
• Major lenders HSBC, Barclays and Lloyds were among the top boosts to FTSE 100, while Rio Tinto and Glencore rose about 1% each, as metals prices firmed. [MET/L]
• Shares of oil majors BP and Shell dipped 1% and 0.5%, respectively, tracking weaker crude prices.
Economic Data and Company-Specific News
• The FTSE 100 index had ended a four-week losing streak on Friday after softer economic data weakened expectations of a Bank of England rate hike.
• However, the latest report showed British shop price inflation sped up in May on the back of disruption and higher energy costs caused by the war.
• Among individual stocks, Kingfisher rose nearly 4% after the home improvement retailer maintained its full-year profit outlook despite a drop in first-quarter underlying sales.
• Melrose Industries fell 4% after an overheating chemical tank at its GKN Garden Grove facility in California triggered an emergency response and evacuation orders over the weekend.
Reporting Credits
(Reporting by Medha Singh in Bengaluru; Editing by Vijay Kishore)