(Sharecast News) - London stocks had extended gains by midday on Tuesday amid rising oil prices, as investors continued to assess developments in the Middle East.
The FTSE 100 was up 0.7% at 10,390.74. Meanwhile, Brent crude was 3.3% higher at $103.54 a barrel and West Texas Intermediate was up 3.6% at $96.86.
In Middle East developments, Israel said it had killed Iran's security chief and the head of its Basij militia, Ali Larijani, in airstrikes overnight. Iran has not confirmed the news.
Dan Coatsworth, head of markets at AJ Bell, said: "The FTSE 100 ticked higher and outperformed some of its counterparts as oil continued to climb.
"The longer the oil price stays above $100 per barrel, the louder the alarm bells for the market over inflation risks. Iran's continued attacks on regional energy infrastructure are helping to keep crude at elevated levels.
"The FTSE 100 has a large weighting towards oil and gas producers, although it also has plenty of constituents that have big energy or fuel requirements or which might lose out from interest rates staying higher for longer.
"Australia's decision to increase interest rates is reflective of the shift in thinking on the part of central banks as they respond to renewed inflationary pressures. It's a reminder we are in a different world to the one at the start of 2026."
In a 5-4 vote among its policy board, the Reserve Bank of Australia lifted its cash rate target to 4.1% from 3.85%, taking it back to levels seen a year ago and effectively removing the relief of two cuts in 2025.
In equity markets, BT Group was the top performer on the FTSE 100 after Ofcom said the door was open to the gradual deregulation of Openreach, but only if competition takes root.
Trustpilot surged as the customer feedback platform reported full-year profits ahead of expectations, while IP Group rallied as it hailed a return to NAV growth in 2025.
Travis Perkins rose even as it warned of subdued market conditions and said it swung to an annual loss.
DIY and trade retailer Wickes gained as it reported a jump in annual profits and announced a 10m share buyback, adding that it was "comfortable" with progress towards current-year forecasts despite the wet English winter hampering outdoor projects.
On the downside, Close Brothers was under pressure again as it reported a narrowing of its first-half losses and said it was planning to cut around 600 jobs by the end of financial 2027 as it accelerates its cost-cutting programme.
Shares in the company tumbled late on Monday after Viceroy Research said in a note that it had "systematically misrepresented" its exposure to the car finance scandal. Viceroy said that examination of the Financial Conduct Authority's redress scheme suggests that Close Brothers will have to "at least, double its existing provisions".
The short-seller, known for its exposes on Wirecard and Home Reit, said Close Brothers has not fully provisioned for the redress because further provisions would breach CET1 regulatory capital restrictions and could create "an equity wipeout event".
Viceroy said Close Brothers' redress exposure ranges from 572m to 1.2bn, which is well above its current provision of 300m.
Market Movers
FTSE 100 (UKX) 10,390.74 0.71%
FTSE 250 (MCX) 22,129.69 0.49%
techMARK (TASX) 5,833.20 -0.04%
FTSE 100 - Risers
BT Group (BT.A) 220.10p 2.56%
Centrica (CNA) 213.30p 2.45%
Standard Chartered (STAN) 1,583.00p 2.19%
Airtel Africa (AAF) 367.00p 2.17%
United Utilities Group (UU.) 1,380.00p 2.14%
SEGRO (SGRO) 758.20p 2.10%
Severn Trent (SVT) 3,209.00p 2.03%
3i Group (III) 2,990.00p 1.91%
Hikma Pharmaceuticals (HIK) 1,290.00p 1.90%
Persimmon (PSN) 1,213.00p 1.89%
FTSE 100 - Fallers
Babcock International Group (BAB) 1,345.00p -1.10%
Rightmove (RMV) 446.90p -1.08%
Flutter Entertainment (DI) (FLTR) 8,142.00p -1.00%
The Sage Group (SGE) 837.80p -0.95%
Spirax Group (SPX) 6,570.00p -0.83%
Halma (HLMA) 3,806.00p -0.68%
Smurfit Westrock (DI) (SWR) 2,940.00p -0.57%
Relx plc (REL) 2,566.00p -0.54%
Croda International (CRDA) 2,613.00p -0.42%
Autotrader Group (AUTO) 484.30p -0.41%
FTSE 250 - Risers
Trustpilot Group (TRST) 221.20p 24.93%
IP Group (IPO) 53.30p 8.22%
Travis Perkins (TPK) 621.00p 6.43%
Ocado Group (OCDO) 213.20p 4.41%
Wizz Air Holdings (WIZZ) 919.50p 3.64%
Oxford Nanopore Technologies (ONT) 121.20p 3.25%
Pennon Group (PNN) 567.00p 3.00%
Playtech (PTEC) 354.00p 2.91%
Twentyfour Income Fund Limited Ord Red (TFIF) 108.20p 2.85%
Wickes Group (WIX) 221.00p 2.79%
FTSE 250 - Fallers
Close Brothers Group (CBG) 340.40p -4.81%
Domino's Pizza Group (DOM) 177.40p -3.43%
Savills (SVS) 904.00p -2.59%
Dr. Martens (DOCS) 61.50p -2.46%
QinetiQ Group (QQ.) 493.40p -2.26%
Softcat (SCT) 1,130.00p -2.25%
Harworth Group (HWG) 168.50p -2.03%
Computacenter (CCC) 2,930.00p -1.61%
Senior (SNR) 277.00p -1.60%
Harbour Energy (HBR) 286.40p -1.58%
85.91 (0.83%)
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