(Sharecast News) - London stocks edged up in early trade on Tuesday as oil prices fell on renewed US-Iran peace hopes and as investors mulled the latest UK GDP figures.
At 0848 BST, the FTSE 100 was up 0.2% at 10,508.66, while Brent crude was down 1.1% at $72.37 a barrel and West Texas Intermediate was off 0.8% at $70.19 after Donald Trump claimed that peace talks between the US and Iran would resume in Doha on Tuesday. This was later denied by Iran.
Susannah Streeter, chief investment strategist at Wealth Club, said: "There's been cautious optimism unfolding on the Footsie in early trade as investors assess the likelihood of Middle East peace talks progressing and digest relatively stable UK growth figures.
"Brent crude has inched down again, a measure of hope that negotiations will advance, even though the situation remains somewhat unpredictable. Control of the Strait of Hormuz is set to remain a sticking point in discussions amid concerns that tolls could be imposed after the 60-day free-transit grace period has expired."
On home shores, data from the Office for National Statistics showed the economy grew 0.6% in the three months to March, in line with expectations and following revised growth of 0.1% in the final quarter of 2025.
Growth was driven by an increase in all three sectors, the ONS said, with the largest contribution from the services sector, which grew 0.8%.
Liz McKeown, director of economic statistics at the ONS, said: "Services were the main driver of growth in the latest quarter, with strengths in computer programming, wholesale and advertising only offset by falls in rental companies and recruitment agencies. Production and construction also both grew overall, although construction only partly reversed its recent weakness."
Annual GDP for 2025 was revised down to show growth of 1.3% from 1.4%, and following unrevised growth of 1% in 2024.
The figures also showed that living standards fell, with real household disposable income per head down 0.8% in the first quarter of this year following a 1.2% rise in the final quarter of 2025.
In equity markets, miners rallied on the back of higher copper prices and better-than-expected China manufacturing and non-manufacturing PMIs, with Antofagasta, Anglo American and Rio Tinto all up.
Supermarket chain Sainsbury's gained as it held annual guidance despite slower first-quarter sales as the war in Iran and Lebanon continued to cause uncertainties for customers.
Serviced offices provider and Regus owner IWG shot higher as it increased its 2026 share buyback programme by $50m, taking the total to $150m.
On the downside, housebuilders slid, with Barratt, Persimmon, Vistry and Taylor Wimpey all down following reports that seven of the biggest housebuilders are facing a 4.5bn lawsuit over claims they overcharged buyers.
Ladbrokes owner Entain fell following reports that all-night slot machine shops and casinos could face a 460m tax rise if Andy Burnham acts on his concerns about the gambling industry as prime minister.
EasyJet flew a little lower after rating downgrades by RBC Capital Markets and Citi.
Market Movers
FTSE 100 (UKX) 10,508.66 0.23%
FTSE 250 (MCX) 23,063.48 0.21%
techMARK (TASX) 5,897.73 0.34%
FTSE 100 - Risers
Antofagasta (ANTO) 3,845.00p 2.67%
Anglo American (AAL) 3,718.00p 2.65%
Sainsbury (J) (SBRY) 323.20p 2.06%
Glencore (GLEN) 521.90p 2.00%
Rio Tinto (RIO) 7,186.00p 1.68%
Lion Finance Group (BGEO) 11,290.00p 1.35%
Spirax Group (SPX) 6,880.00p 1.33%
Scottish Mortgage Inv Trust (SMT) 1,442.50p 1.30%
Smiths Group (SMIN) 2,554.00p 1.23%
Halma (HLMA) 3,918.00p 1.19%
FTSE 100 - Fallers
Barratt Redrow (BTRW) 276.80p -2.40%
Entain (ENT) 576.60p -2.37%
Persimmon (PSN) 1,056.00p -2.22%
Compass Group 11 (CPG) 31.93p -2.09%
JD Sports Fashion (JD.) 83.92p -1.62%
Vodafone Group (VOD) 102.00p -1.40%
BT Group (BT.A) 193.15p -1.20%
3i Group (III) 2,471.00p -1.00%
Centrica (CNA) 171.15p -0.95%
Rentokil Initial (RTO) 426.60p -0.86%
FTSE 250 - Risers
International Workplace Group (IWG) 190.90p 4.63%
THG (THG) 30.40p 3.74%
4Imprint Group (FOUR) 3,724.00p 3.72%
RHI Magnesita N.V. (DI) (RHIM) 2,900.00p 3.39%
Ceres Power Holdings (CWR) 497.60p 3.37%
HGCapital Trust (HGT) 385.50p 3.14%
Raspberry PI Holdings (RPI) 788.75p 3.08%
Seraphim Space Investment Trust (SSIT) 185.60p 3.08%
XP Power Ltd. (DI) (XPP) 1,916.00p 3.01%
Pacific Horizon Inv Trust (PHI) 1,160.00p 2.65%
FTSE 250 - Fallers
NCC Group (NCC) 121.40p -2.94%
B&M European Value Retail (BME) 195.30p -2.45%
Hilton Food Group (HFG) 518.00p -2.39%
Vistry Group (VTY) 250.80p -2.18%
Taylor Wimpey (TW.) 80.46p -1.97%
Cranswick (CWK) 5,580.00p -1.93%
Helios Towers (HTWS) 201.20p -1.75%
Berkeley Group Holdings (The) (BKG) 3,478.00p -1.58%
Bellway (BWY) 1,954.00p -1.56%
ICG Enterprise Trust (ICGT) 1,386.00p -1.28%
76.14 (0.73%)
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