Stock markets have rallied amid renewed optimism over a Middle East peace deal.
The FTSE 100 traded in positive territory, having benefited from a strong handover from Asia and Wall Street.
Oil prices are just below $100 a barrel, which represents a slight easing on the benchmark’s level at the start of the week.
FTSE 100 Live Tuesday
- Imperial update disappoints
- BP oil trading boost
- Retail sales struggle
Market update: Miners lead FTSE 100, Imperial shares slide on update
10:07 , Graeme EvansStock market optimism over a Middle East peace deal today helped the FTSE 100 index extend its recovery, even though the oil price stayed near $100 a barrel.
London’s top flight rose 0.3% or 32.32 points 10,615.28, a level more than 7% higher than the low point for the year set on 23 March.
Sentiment benefited from last night’s 1% advance by the S&P 500 index as the leading US benchmark returned above its pre-war level of 27 February.
The US advance followed a strong start to the Wall Street earnings season after Goldman Sachs yesterday reported its best quarterly results in five years.
Asia markets built on the momentum as traders picked up on signals that the US and Iran are ready to consider fresh negotiations.
Kathleen Brooks, XTB research director, said: “Even though tensions remain high and the Strait of Hormuz remains closed, the market is comfortable that this war has entered a new stage — one that will lead to the end of fighting and a pathway to reopening the waterway.”
The price of Brent crude settled near $98.62 a barrel, which compared with yesterday’s level of $102 after weekend peace talks ended without a deal.
The commodity’s recent price spike will mean BP reports an “exceptional” first quarter trading result, although shares fell 2p to 577.2p following today’s trading update. Shell dropped 21.5p to 3449.5p.
Defensive stocks dominated the fallers board as BAE Systems retreated 26p to 2219.5p and Tesco dropped 1.8p to 482.65p.
Traders also reduced their exposure to the tobacco sector after an update by Bristol-based Imperial Brands.
The maker of Davidoff and JPS expects to report a slight rise in operating profit in next month’s half-year results before growth accelerates in the second half.
The shares fell 8% or 241p to 2841p as Imperial reported some pressure on market share in the period. British American Tobacco dropped 4% or 167p to 4181p.
On the risers board, Intertek jumped 12% or 444p to 4262p after the quality assurance firm said it is considering the potential separation of its energy and infrastructure division.
Miners also fared well as higher gold, silver and copper prices helped Fresnillo, Antofagasta and Anglo American to rise by about 3%. Glencore added 10.9p to 575p after benefiting from the Buy recommendation of HSBC analysts.
Imperial Brands sees second half acceleration, shares fall 5%
09:25 , Graeme EvansThe shares of Imperial Brands have fallen 5% or 168p to 2914p, despite the tobacco giant reiterating profit guidance for the financial year.
The maker of Davidoff, JPS and Blu expects to report a slight rise in operating profit in next month’s half-year results before its growth accelerates in the second half.
The group sees low-single-digit percent revenues growth in tobacco and next generation products, albeit with some pressure on market share in the period.
Richard Hunter, head of markets at Interactive Investor, said: “Changing lifestyle habits and tougher regulation perennially overhang this sector, but in the meantime Imperial Brands continues to play the cards it has been dealt carefully.
“However, in simply maintaining its guidance rather than pointing to an immediate catalyst, the share price has been met with some disappointment in opening trades.”
BP set for “exceptional” oil trading result
08:32 , Graeme EvansBP has said it is set for an “exceptional” oil trading result in the first three months of the year after the Iran war sent the cost of crude soaring.
The FTSE 100 firm upgraded its first quarter oil trading guidance, which follows a “weak” out-turn for the division in the final quarter of 2025.
Upstream production is expected to be broadly flat compared with the previous quarter. The company is due to report first quarter figures on 28 April.
FTSE 100 opens higher, upgrade boosts Glencore
08:13 , Graeme EvansThe FTSE 100 index has risen 27.91 points to 10,610.87, boosted by optimism over the potential for renewed US-Iran peace talks.
Asia markets also traded in positive territory, with the Nikkei 225 up 2.4% and the Hang Seng index 1.1% higher.
In London, Glencore shares rose 9p to 573.1p after HSBC upgraded its recommendation on the mining stock to Buy.
Standard Chartered also benefited from City support as shares rose 22.4p to 1741.4p in response to BNP Paribas moving to an Outperform stance.
Intertek shares jumped 13% or 508p to 4326p after the testing and quality assurance firm announced it is considering the potential separation of its energy and infrastructure division.
Imperial Brands fell 5% or 167.5p to 2914.5p, despite reiterating full-year guidance for low-single-digit tobacco and double-digit next generation net revenue growth
Retail sales “tepid” amid consumer caution
07:54 , Graeme EvansSales of consumer goods other than food were “tepid” in March amid heightened caution among shoppers due to the Middle East conflict, figures show.
Non-food sales increased by 0.9% year on year last month, below the 12-month average of 1.1%, according to the British Retail Consortium (BRC) and KPMG.
An early Easter gave the month’s food sales an artificial boost, driving up overall total UK retail sales to 3.6% higher than a year ago.
VodafoneThree unveils retail store plan
07:40 , Graeme EvansNewly-created mobile phone provider VodafoneThree has launched a major overhaul of its retail store estate.
The group has stressed that it is committed to the UK high street following its recent £15 billion merger and will remain in every town where it already has a presence.
Investment will increase the amount of support and advice available at its retail locations, including additional repair services for customers.
However, it is understood the transformation plan will see some consolidation where Vodafone and Three currently run neighbouring premises.
Gas supplies can meet summer demand - National Gas
07:29 , Graeme EvansBritain is expected to have sufficient gas supply to meet demand this summer, despite a volatile backdrop for global energy markets.
National Gas, which runs the National Transmission System, stressed that British demand for gas will be primarily met by the UK Continental Shelf and imports from Norway.
It added that stocks are set to be sufficient enough to allow for some British gas to be exported to mainland Europe.
Asia markets rally, oil price stays near $100
07:02 , Graeme EvansHopes of fresh talks to end the Middle East war have helped to steady the price of Brent crude oil at just below $100 a barrel.
The benchmark this morning dipped 0.8% to $98.58, which compares with more than $102 in dealings early yesterday.
Asia markets have risen, led by Japan’s Nikkei 225 after a surge of 2%.
Stock market sentiment at Europe’s opening bell has benefited from a strong finish to trading on Wall Street last night.
The Dow Jones Industrial Average rose 0.6%, the S&P 500 index lifted 1% and the Nasdaq Composite improved 1.2%.
The FTSE 100 index is seen opening slightly higher after closing down 0.2% or 17.57 points at 10,582.96 in yesterday’s session.
