The FTSE 100 rose more than 0.5% on Tuesday, outperforming weaker mainland European markets as investors returned from Monday’s UK holiday. Brent crude advanced after renewed tensions in the Middle East, following US and Israeli strikes on Iranian vessels in the Strait of Hormuz and other locations.
Defence stocks were among the notable gainers, with BAE Systems up 0.5%, Babcock rising 2.1% and Rolls-Royce climbing 1%. Pharmaceutical majors also lent support to the index, as AstraZeneca and GSK each added between 0.5% and 1%.
Banks traded firmly higher: Lloyds Banking Group, Barclays, NatWest and Standard Chartered all rose by more than 1%, while HSBC also advanced. The mining sector strengthened broadly, with Endeavour Mining up 3%, Rio Tinto and Glencore gaining more than 2%, and Antofagasta and Anglo American also moving higher. Fresnillo added 0.3%.
On the macroeconomic front, BRC data showed UK shop price inflation quickened to 1.2% year-on-year in May, even as food inflation eased slightly to 2.7%.
