Oil majors and weapons firms help FTSE 100 higher amid Middle East tensions
London’s top stock index finished 14.21 points, or 0.17%, higher, to end the day at 8,290.86.
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Your support makes all the difference.The FTSE 100 ticked higher again as London’s oil majors and weapons manufacturers made gains because of further attacks in the Middle East.
BAE Systems was among London-listed firms to finish higher after Iran fired a barrage of missiles at Israel, which came after Israeli forces had targeted Hezbollah militia in Lebanon earlier in the week.
The defence manufacturer finished the session up 2% as a result.
Elsewhere, oil prices made strong gains as tensions in the region pointed to pressure on future oil supplies.
A barrel of Brent crude oil was up by 2.3% to 75.76 dollars (£57.07) as markets were closing in London.
Global markets, and indeed the international community, are on tenterhooks as they await an Israeli response to Iran’s attacks on Tuesday
This helped lift the value of oil-related stocks, with energy giants BP and Shell helping to push the FTSE 100 higher as a result.
London’s top stock index finished 14.21 points, or 0.17%, higher to end the day at 8,290.86.
Elsewhere in Europe, equity markets were broadly steady but slightly more cautious across the Channel, with a small dip for German stocks.
The Cac 40 ended 0.04% higher for the day and the Dax index was down 0.33% at the close.
Chris Beauchamp, chief market analyst at IG, said: “Global markets, and indeed the international community, are on tenterhooks as they await an Israeli response to Iran’s attacks on Tuesday.
“This is unlikely to be a repeat of last time, given the geopolitical implications, and thus today’s calm reaction by investors may not last.”
In the US, the main markets were lower on the opening bell because of geopolitical worries but regained some ground after a slightly stronger than expected ADP jobs report.
Meanwhile, sterling slipped back a little more against the dollar as traders sought security by buying into the US greenback.
The pound was down 0.12% at 1.327 US dollars, and up 0.1% at 1.200 euros.
In company news, shares in JD Sports stumbled despite posting a 6.8% jump in total revenues for the half-year to August, driven by strong demand for trainers.
However, UK sales dropped on the back of “challenging” market conditions, while its stock value was also knocked by concerns about the broader athleisure market after a sales slump at Nike.
Shares in JD Sports were down 6.1% at 140.35p as a result.
Music Magpie shares took flight after online electricals retailer AO World agreed a takeover deal worth about £10 million for the struggling firm.
The Stockport-based business, which buys and sells refurbished electronics and used computer games, consoles, books, films and music, secured the sale almost a year after previous processes with BT and private equity firm Aurelius fell through.
Shares in Music Magpie rose by 50.6% to 8.66p.
Saga was another notable riser during the session after the over-50s firm confirmed talks with Belgian firm Ageas over a tie-up for its insurance arm.
Shares lifted by 9% to 122.8p after Saga said the companies are in discussions over a “potential partnership arrangement”, amid efforts by the London-listed firm to reduce its debt levels.
The biggest risers on the FTSE 100 were Prudential, up 28.8p to 720.4p, CocaCola HBC, up 88p to 2,726p, Standard Chartered, up 16.2p to 795.4p, BAE Systems, up 25p to 1,298.5p, and Shell, up 43p to 2,521p.
The biggest fallers on the FTSE 100 were JD Sports, down 9.15p to 140.35p, easyJet, down 17.6p to 484p, Severn Trent, down 81p to 2,609p, Vistry, down 39p to 1,286p, and United Utilities, down 27p to 1,037p.