The FTSE 100 Index Closes 0.20% Higher

The FTSE 100 Index gained 21 points or 0.20 percent on Tuesday to close at 10520 points. Gains were led by Airtel Africa (3.37%), Glencore (3.21%) and Rio Tinto (3.04%). Biggest losers were Pearson (-6.68%), Smith & Nephew (-3.64%) and Intercontinental Hotels (-3.60%).

The FTSE 100 edged slightly higher on Tuesday in a volatile session, supported by softer US inflation data and President Donald Trump’s decision to drop plans for a fee on cargo passing through the Strait of Hormuz. US annual inflation slowed to 3.5% in June from 4.2% in May, below expectations of 3.8%, prompting investors to reduce bets on further Federal Reserve tightening. Market sentiment also improved after Trump replaced his proposed 20% transit fee with investment agreements from Gulf states, saying the revenue would instead come through future US investments. Energy and financial stocks led gains, with Shell up 0.9% and BP adding 1.6%. HSBC rose 1.7%, Lloyds Banking gained 1%, and Standard Chartered advanced 1.6%. Mining stocks also performed strongly, with Rio Tinto up 3% and Glencore rising 3.2%. On the downside, AstraZeneca fell more than 1.5%, GSK declined nearly 2%, while Unilever and Rolls Royce slipped around 0.6%.

The FTSE 100 edged lower on Tuesday as renewed US-Iran tensions pushed oil prices higher, with gains in energy and mining stocks outweighed by broader market weakness. President Donald Trump said the US would reinstate a blockade on Iranian vessels using the Strait of Hormuz and seek payments on all other cargo transiting the waterway. Banking stocks declined, with HSBC, Lloyds Banking and Barclays down around 0.6%, NatWest losing 0.9%, and Standard Chartered falling more than 1%. Defence names also weakened, with Rolls-Royce down 2% and BAE Systems slipping 0.6%, while Unilever, BAT, GSK and AstraZeneca also traded lower. AstraZeneca announced an exclusive global licensing agreement for its lung cancer treatment Zegfrovy in a deal worth up to $1.5 billion. On the upside, Shell rose 1.6% and BP gained 2.7% after reporting stronger refining margins, while Rio Tinto, Glencore, Anglo American and Antofagasta each advanced more than 1%.