FTSE 100 edges higher as cyclicals rise
Market Performance and Sector Highlights
June 2 (Reuters) - The UK's blue-chip FTSE 100 climbed on Tuesday, led by gains in cyclical sectors such as miners and banks, while investors watched for signs of progress in talks to end the Iran war.
The FTSE 100 index closed up 0.3%, while the midcap FTSE 250 climbed 0.6%.
Sector Movements
Industrial Metal Miners
• Industrial metal miners led gains, with heavyweights including Glencore, Anglo American and Rio Tinto climbing around 4% each as copper prices climbed to a more than two-week high. [MET/L]
Banking Stocks
• British banking stock index rose 1.9% to close at its highest since December 2007.
Oil and Gas
• Oil and gas stocks edged up 0.4%, with crude prices little changed as Iran reviewed a proposed agreement with the United States to halt the war. Lebanon also announced a partial ceasefire between Hezbollah and Israel.
Geopolitical Influences
Impact of Iran Conflict
• Iran has effectively halted most non-Iranian shipping in and out of the Gulf since the war began, choking off about a fifth of global oil and liquefied natural gas flows, driving up prices and fuelling inflation concerns.
Bank of England's Response
• Bank of England Governor Andrew Bailey said it was important to bring British inflation back to target and give households confidence about the central bank's ability to do so.
Notable Individual Stock Moves
British American Tobacco
Revenue Forecast and Share Reaction
• Among single stocks, British American Tobacco raised its forecast for revenue from smoking alternatives like vapes after a significant U.S. policy shift, but kept its group-wide guidance unchanged, sending its shares down 2.5%.
GB Group
Yearly Loss and Impairment Charge
• GB Group slid 17% after the identity technology company clocked a yearly loss due to an impairment charge of £73.1 million.
(Reporting by Shashwat Chauhan and Sruthi Shankar in Bengaluru; Editing by Shailesh Kuber and Tomasz Janowski)
