The FTSE 100 closed higher on Tuesday, buoyed by mining stocks and hopes of de-escalation in the Middle East, while oil prices fell. The blue-chip index rose 34.56 points, or 0.3%, to 10,373.51, with miners Antofagasta, Anglo American and Glencore among the top gainers, up 6%.
Investor sentiment was supported by US President Donald Trump's comments that peace talks with Iran were progressing rapidly and that Israel and Hezbollah had agreed to stop fighting, although Israeli strikes resumed on Tuesday. Susannah Streeter, chief investment strategist at Wealth Club, said: “There is no concrete progress in Middle East negotiations to hang a hat on, but investors appear broadly optimistic that a longer-term resolution will be reached.”
Brent crude for August delivery fell to $94.68 a barrel, down from $97.22 at Monday's close, as oil prices remained near the bottom of their recent range, well below the $100 a barrel seen a few weeks ago, according to David Morrison at Trade Nation.
In European markets, the CAC 40 in Paris rose 0.8% and the DAX 40 in Frankfurt gained 0.5%. In New York, the Dow Jones Industrial Average, S&P 500 and Nasdaq Composite all edged up 0.2-0.3%, following record highs on Monday driven by AI enthusiasm. Nvidia shares opened higher after unveiling a powerful laptop chip, while Google parent Alphabet announced plans to raise up to $80 billion for AI infrastructure.
The pound traded at $1.3475, up from $1.3447 on Monday, and against the euro at €1.1578, up from €1.1570. Gold rose to $4,503.10 an ounce from $4,472.82. In the eurozone, inflation accelerated to 3.2% in May, pressuring the European Central Bank to hike rates next week, with core inflation hitting its highest since April last year.
