London close: Stocks eke higher as investors show caution ahead of risk events

(Sharecast News) - London's FTSE 100 inched higher on Tuesday despite a continued rise in the price of oil, as markets bounced off their lowest levels in four weeks.

After swinging between gains and losses for most of the session, the FTSE 100 managed to push into positive territory by the close of play, rising 0.11% to 10,332.79. The index finished at 10,321.09 on Monday, its lowest since 31 March.

A number of key risk events have prompted rangebound trading this weekend, with monetary policy meetings in the US, UK, Canada and Eurozone over the coming days. As expected of all central banks, the Bank of Japan overnight held on to interest rates, but did raise its inflation forecasts owing to the energy crisis caused by the Iran war.

"Rising yields following the Bank of Japan's raised inflation forecast - while keeping rates on hold - led to a sell-off in precious metals such as silver and gold, the latter hitting a one-month low," said Axel Rudolph, chief technical analyst at IG.

"Eurozone inflation expectations spiked while in the UK 10-year gilt yields climbed to around 5% - close to their 2008 highs - on rising inflation fears driven by Middle East tensions and elevated oil prices, reinforcing expectations of tighter Bank of England policy despite an expected near-term rate hold," he said.

The yield on a 10-year UK Gilt was up 6.4 basis points at 5.037%. Meanwhile, Brent crude was 2.6% higher at $104.32 a barrel, while WTI climbed 3.7% to $99.94 a barrel.

Oil prices continued to climb as investors awaited Donald Trump's response to a peace proposal from Iran, with reports suggesting he was unlikely to accept it because it sets aside any discussions about Tehran's nuclear program until the war is ended. According to Reuters, citing a US official, the proposal is unlikely to satisfy the US, which says nuclear issues must be dealt with from the outset.

Markets across Europe were mixed, while losses were see in New York, ahead of a host of blue chip corporate earnings on Wall Street, with five of the 'Magnificent 7' due to report.

Oil stocks rise, housebuilders drop

BP rose but trimmed some gains before the close as it posted a better-than-expected first-quarter profit with the oil giant benefitting from a surge in oil and gas prices due to the Iran war. Underlying replacement cost profit - BP's preferred measure - came in at $3.2bn in the first three months of the year, up from $1.4bn in the same quarter a year earlier, and from $1.5bn in the final quarter of 2025. This was ahead of analysts' expectations of $2.6bn.

Sector peers Shell, Harbour Energy and Energean also rose.

Disappointing results from housebuilder Taylor Wimpey prompted profit-taking across the sector, with Persimmon and Bellway both in the red. Taylor Wimpey reported a drop in sales rates over the year-to-date, along with a declining order book and weaker pricing. The company also warned of rising build cost inflation, as energy price pressures build up across the supply chain.

On the FTSE 250, Telecom Plus was a big mover, dropping 17% as it warned that full-year profits would come in at the bottom end of guidance following reduced energy consumption during an unseasonably warm winter. The company, which trades as Utility Warehouse, saw lower-than-expected growth in energy and organic broadband services, while insurance services have been slow to recover from the temporary pause in new insurance sales in FY25.

Travis Perkins also fell after the building materials distributor said trading conditions remained challenging in the first quarter as group revenue fell on a like-for-like basis amid subdued construction activity.

Market Movers

FTSE 100 (UKX) 10,332.79 0.11%

FTSE 250 (MCX) 22,399.42 -0.80%

techMARK (TASX) 5,868.65 -0.39%

FTSE 100 - Risers

DCC (CDI) (DCC) 5,380.00p 2.77%

Airtel Africa (AAF) 355.40p 2.36%

Coca-Cola Europacific Partners (DI) (CCEP) 7,260.00p 1.89%

British American Tobacco (BATS) 4,312.00p 1.79%

Coca-Cola HBC AG (CDI) (CCH) 4,225.00p 1.68%

Centrica (CNA) 211.20p 1.59%

Imperial Brands (IMB) 2,775.00p 1.39%

Associated British Foods (ABF) 1,844.50p 1.37%

M&G (MNG) 301.90p 1.31%

InterContinental Hotels Group (IHG) 145.05p 1.15%

FTSE 100 - Fallers

Antofagasta (ANTO) 3,488.00p -3.93%

Anglo American (AAL) 3,520.00p -3.07%

Compass Group 11 (CPG) 28.51p -2.71%

Experian (EXPN) 2,669.50p -2.70%

Weir Group (WEIR) 2,824.00p -2.69%

Spirax Group (SPX) 7,198.00p -2.55%

Whitbread (WTB) 2,410.00p -2.51%

Croda International (CRDA) 2,837.00p -2.34%

Intertek Group (ITRK) 4,595.00p -2.30%

Smurfit Westrock (DI) (SWR) 2,892.00p -2.26%

FTSE 250 - Risers

Diversified Energy Company (DI) (DEC) 1,188.00p 2.06%

IP Group (IPO) 62.20p 1.97%

Balfour Beatty (BBY) 806.50p 1.70%

Tate & Lyle (TATE) 355.80p 1.66%

International Workplace Group (IWG) 188.40p 1.51%

Keller Group (KLR) 2,220.00p 1.37%

Energean (ENOG) 860.00p 1.36%

Watches of Switzerland Group (WOSG) 515.00p 1.28%

Baillie Gifford US Growth Trust (USA) 320.00p 1.27%

Clarkson (CKN) 4,794.00p 1.22%

FTSE 250 - Fallers

Telecom Plus (TEP) 1,180.00p -17.02%

THG (THG) 32.94p -5.78%

Raspberry PI Holdings (RPI) 556.50p -5.60%

SSP Group (SSPG) 167.00p -5.49%

Taylor Wimpey (TW.) 79.00p -5.25%

Aston Martin Lagonda Global Holdings (AML) 39.94p -4.45%

Endeavour Mining (EDV) 4,191.00p -4.45%

Travis Perkins (TPK) 524.00p -4.03%

Genus (GNS) 2,304.00p -3.92%

OSB Group (OSB) 513.50p -3.39%