FX.co ★ FTSE 100 Trades Higher

On Tuesday, the FTSE 100 experienced an uptick following President Donald Trump's announcement of a ceasefire between Israel and Iran, helping to alleviate some geopolitical tensions. Despite this positive development, the index lagged behind other European markets, burdened by significant declines in energy and defensive stocks. BP and Shell suffered losses of approximately 5% and 3.6%, respectively, as oil prices dropped due to diminished concerns over supply. Similarly, utilities and defense stocks retreated; BAE Systems, for instance, fell by about 2%, reversing gains made during the recent period of risk aversion. Conversely, stocks in the travel and finance sectors saw a robust rally. Shares of both International Airlines Group and EasyJet climbed roughly 7% as Gulf nations, including Qatar and the UAE, reopened their airspace and resumed flight operations. The financial sector also showed solid performance, with Barclays, Standard Chartered, and Prudential each advancing approximately 3%.