London's FTSE 250 midcap index scales near three-month high; BP slides
UK Stock Market Performance and Key Movers
May 26 (Reuters) - UK stocks climbed on Tuesday, with the FTSE 250 touching a near three-month high on renewed optimism over U.S.-Iran talks, while BP dropped after removing Chair Albert Manifold.
FTSE 100 and FTSE 250 Index Movements
The blue-chip FTSE 100 closed 0.2% higher at 10,491.39 points, touching a five-week high. The FTSE 250 climbed 0.7% to its highest since March 2 in its fourth straight session of gains.
BP Leadership Changes and Impact
• BP shares dropped 4% after Chair Albert Manifold was ousted with immediate effect, citing governance standards, oversight and conduct issues, months after he took office to help oversee a strategy revamp.
Geopolitical Developments Affecting 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 pivotal blockaded Strait of Hormuz.
Market Reaction to U.S.-Iran Tensions
• However, U.S. strikes in southern Iran tempered some enthusiasm that the deal was imminent.
Sector and Stock Highlights
Major Lenders and Commodity Stocks
• Major lenders HSBC, Barclays and Lloyds were among the top boosts to FTSE 100, while Rio Tinto and Glencore rose 2% and 3%, respectively, as metals prices firmed. [MET/L]
Economic Data and Inflation Trends
• 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.
Notable Individual Stock Movements
• 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 5.3% 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 and David Gregorio)
