(Sharecast News) - London stocks were still a little higher by midday on Tuesday as investors shrugged off fresh US sanctions on Iran, with Melrose and Vistry powering ahead.
The FTSE 100 was 0.2% firmer at 10,876.16, while Brent crude was down 2.7% at $89.69 a barrel and West Texas Intermediate was 2.9% lower at $82.55.
Russ Mould, investment director at AJ Bell, said: "European equity markets pushed forward with gains across all the major indices as investors digested softer than expected US sanctions against Iran.
"While there was a sense of calm across markets, the situation could easily change as the week progresses. Nvidia's upcoming results have the power to move markets up or down, with investors looking for clues on whether AI demand is losing momentum.
"The forthcoming Jackson Hole meeting will also be scrutinised by the market as investors seek more information from new Fed chair Kevin Warsh on how the US central bank will fight inflation. So far, Warsh is adopting a 'less is more' attitude to communicating what the Fed's interest rate committee is thinking, and the market is still trying to adjust to this approach."
In equity markets, Melrose Industries surged as it said the Orange County District Attorney has now closed its criminal investigation into an incident at the GKN Aerospace Garden Grove facility with no charges. Richard Hunter, head of markets at Interactive Investor, said "the decision removes a raft of uncertainty which had been overhanging the shares".
Melrose also said it will launch a $100m claims programme for residents and businesses affected by the May evacuation, after a chemical tank containing thousands of gallons of methyl methacrylate overheated and forced authorities to clear a wide area for several days.
Next was boosted by an upgrade to 'buy' from 'neutral' at Citi, while Marks & Spencer rose after the same outfit lifted its price target to 470p from 390p.
Jupiter Fund Management was also on the front foot after Berenberg initiated coverage of the shares with a 'buy' rating, highlighting a return to positive flows. "While it remains difficult to predict flows with any kind of certainty, with investor sentiment constantly shifting on geopolitical news, we believe that Jupiter has a diverse, attractive range of funds that should deliver growth," it said.
Housebuilder Vistry shot to the top of the FTSE 250 after securing initial funding of £350m as part of the government's £39bn Social and Affordable Homes Programme (SAHP).
Vistry said it was the largest award possible in this phase and significantly in excess of the first award received under the previous programme. It will enable the company to deliver more than 3,000 affordable homes, well ahead of what was possible under the first phase of the last programme.
Market Movers
FTSE 100 (UKX) 10,876.16 0.20%
FTSE 250 (MCX) 24,870.15 0.62%
techMARK (TASX) 6,176.36 0.42%
FTSE 100 - Risers
Melrose Industries (MRO) 506.40p 9.61%
Marks & Spencer Group (MKS) 395.80p 2.91%
Rolls-Royce Holdings (RR.) 1,538.20p 2.63%
International Consolidated Airlines Group SA (CDI) (IAG) 442.70p 2.50%
Spirax Group (SPX) 7,215.00p 2.49%
Next (NXT) 15,645.00p 2.45%
Halma (HLMA) 3,620.00p 1.91%
Computacenter (CCC) 5,190.00p 1.76%
Weir (WEIR) 2,924.00p 1.74%
IMI (IMI) 3,124.00p 1.69%
FTSE 100 - Fallers
Diageo (DGE) 1,739.00p -1.81%
Fresnillo (FRES) 3,164.00p -1.06%
London Stock Exchange Group (LSEG) 8,750.00p -0.97%
Unilever (ULVR) 4,731.50p -0.94%
Compass Group 11 (CPG) 31.06p -0.86%
Smith & Nephew (SN.) 1,075.00p -0.74%
British American Tobacco (BATS) 4,151.00p -0.74%
Haleon (HLN) 367.10p -0.73%
Standard Chartered (STAN) 2,182.00p -0.59%
Coca-Cola HBC AG (CDI) (CCH) 4,592.00p -0.56%
FTSE 250 - Risers
Vistry Group (VTY) 311.20p 15.93%
PPHE Hotel Group Ltd (PPH) 1,652.00p 4.69%
Jupiter Fund Management (JUP) 171.40p 4.26%
Discoverie Group (DSCV) 784.00p 3.56%
Keller Group (KLR) 2,942.00p 3.22%
Applied Nutrition (APN) 327.50p 3.22%
Oxford Instruments (OXIG) 2,842.00p 3.04%
Ocado Group (OCDO) 239.60p 2.83%
Avon Technologies (AVON) 1,826.00p 2.70%
Rightmove (RMV) 517.60p 2.66%
FTSE 250 - Fallers
Playtech (PTEC) 406.00p -1.70%
Hochschild Mining (HOC) 618.50p -1.67%
WPP (WPP) 393.10p -1.58%
OSB Group (OSB) 508.00p -1.36%
Kainos Group (KNOS) 1,241.00p -1.20%
Globaldata (DATA) 83.20p -1.19%
Energean (ENOG) 763.00p -0.97%
Ithaca Energy (ITH) 268.60p -0.96%
Harworth Group (HWG) 178.60p -0.78%
Big Yellow Group (BYG) 897.50p -0.78%
16.26 (0.15%)
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