The FTSE 100 Index Closes 0.55% Higher

The FTSE 100 Index gained 57 points or 0.55 percent on Tuesday to close at 10582 points. Gains were led by Antofagasta (5.83%), Marks & Spencer (4.58%) and Babcock International (4.14%). Biggest losers were Segro (-2.79%), London Stock Exchange (-2.73%) and Relx (-2.38%).

The FTSE 100 gained around 0.5% on Tuesday, as investors digested Andy Burnham’s surprise appointment of John Healey as chancellor and his commitment to fiscal discipline. Burnham used his first cabinet meeting to reaffirm budget restraint while maintaining his pledge to reduce living costs. UK economic data provided some support, with public borrowing falling in June and labour market figures broadly matching expectations. Wage growth eased slightly, while unemployment remained unchanged at 4.9%. Financials, healthcare, defence and commodity stocks led gains, with Shell and BP rising 0.8% and 1.3% as Brent crude climbed above $91 per barrel. Babcock’s shares rose 4.5% after UK Prime Minister Andy Burnham told NATO chief Mark Rutte that appointing John Healey as Chancellor showed the government’s commitment to defense spending. On the other hand, the London Stock Exchange fell more than 2.5% after announcing plans for a 24-hour weekday trading platform.

The FTSE 100 fell on Tuesday after losing 0.7% in the previous session, as investors assessed the appointment of John Healey as chancellor, fresh UK economic data, and lower oil prices. Healey, the former defence secretary, was named by Prime Minister Andy Burnham after Monday's close. Burnham has pledged to cut household energy bills by scrapping the Digital ID programme. Meanwhile, June public borrowing came in lower than expected, while labour market data was broadly in line with forecasts, with wage growth easing slightly in the three months to May. Shell and BP declined as Brent crude slipped below $89 per barrel. AstraZeneca and GSK fell 0.6% to 0.8%, while Unilever, BAT, and Polar Capital also traded lower. Miners outperformed, led by Antofagasta, Glencore, Anglo American, Rio Tinto, Fresnillo, and Endeavour. Defence stocks also advanced, with Babcock, BAE Systems, and Rolls-Royce posting solid gains.