(Sharecast News) - London stocks nudged up in early trade on Tuesday as investors shrugged off fresh US sanctions on Iran.
At 0835 BST, the FTSE 100 was 0.1% firmer at 10,865.91, while Brent crude and West Texas Intermediate were down 0.8% at $91.48 and $84.31 a barrel, respectively.
Richard Hunter, head of markets at Interactive Investor, said: "The trailed US announcement of the "economic asphyxiation" of Iran was delivered, and turned out to be something of a damp squib. Whereas the administration expanded secondary sanctions and issued new ones on 60 individuals, companies and vessels, driving the Iranian currency to record lows, the intended consequences to isolate the country are far from guaranteed.
"It is estimated, for example, that 90% of Iran's oil is exported to China and there are certainly no indications that the Chinese would be prepared to cut economic ties, which immediately punches a hole through the US plan. For its part, Iran said it was prepared for the additional sanctions and was confident that its major trading partners would not succumb to this US pressure."
In equity markets, Melrose Industries surged as it said the Orange County District Attorney has now closed its criminal investigation into an incident the GKN Aerospace Garden Grove facility with no charges. Richard Hunter said "the decision removes a raft of uncertainty which had been overhanging the shares".
Melrose also announced that 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.
Clothing and homeware retailer 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.
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) 10,865.91 0.11%
FTSE 250 (MCX) 24,752.83 0.14%
techMARK (TASX) 6,146.47 -0.07%
FTSE 100 - Risers
Melrose Industries (MRO) 501.80p 8.79%
Persimmon (PSN) 1,167.00p 1.38%
Weir (WEIR) 2,908.00p 1.32%
InterContinental Hotels Group (IHG) 163.80p 1.29%
Next (NXT) 15,500.00p 1.24%
Rolls-Royce Holdings (RR.) 1,519.00p 1.19%
Halma (HLMA) 3,574.00p 1.13%
Barratt Redrow (BTRW) 316.60p 1.11%
Metlen Energy & Metals (MTLN) 48.46p 0.95%
SSE (SSE) 2,392.00p 0.93%
FTSE 100 - Fallers
Fresnillo (FRES) 3,161.00p -1.41%
JD Sports Fashion (JD.) 84.30p -1.08%
Smith & Nephew (SN.) 1,072.50p -0.97%
London Stock Exchange Group (LSEG) 8,804.00p -0.84%
3i Group (III) 2,911.00p -0.78%
Compass Group 11 (CPG) 31.08p -0.73%
Imperial Brands (IMB) 2,527.00p -0.63%
Diageo (DGE) 1,755.50p -0.62%
British American Tobacco (BATS) 4,179.00p -0.62%
Relx plc (REL) 2,645.00p -0.60%
FTSE 250 - Risers
Vistry Group (VTY) 297.00p 9.83%
IP Group (IPO) 74.00p 3.06%
PPHE Hotel Group Ltd (PPH) 1,630.00p 2.66%
Drax Group (DRX) 750.00p 2.10%
Renishaw (RSW) 5,060.00p 2.09%
Applied Nutrition (APN) 321.75p 2.04%
GCP Infrastructure Investments Ltd (GCP) 81.80p 1.83%
Morgan Sindall Group (MGNS) 4,440.00p 1.78%
Oxford Biomedica (OXB) 518.00p 1.77%
Ceres Power Holdings (CWR) 410.00p 1.72%
FTSE 250 - Fallers
Rathbones Group (RAT) 1,662.00p -2.69%
Genuit Group (GEN) 276.20p -2.68%
Auction Technology Group (ATG) 432.40p -2.48%
Michael Page (PAGE) 217.60p -2.35%
Mitchells & Butlers (MAB) 278.50p -2.28%
Grafton Group Ut (CDI) (GFTU) 1,003.60p -2.15%
Domino's Pizza Group (DOM) 204.00p -1.65%
Supermarket Income Reit (SUPR) 84.20p -1.58%
Genus (GNS) 2,254.00p -1.49%
Fidelity Emerging Markets Limited Ptg NPV (FEML) 1,452.00p -1.36%
6.73 (0.06%)
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