London stocks mixed amid weak tech but FTSE 100 edges up
London’s FTSE 100 nudged higher on Tuesday, outperforming European and US peers, despite fresh falls among technology stocks and renewed tension in the Middle East.
The FTSE 100 closed up 14.11 points, 0.1%, at 10,665.88. The FTSE 250 ended down 125.40 points, 0.5%, at 23,378.82, while the AIM All-Share fell 9.56 points, 1.2%, at 769.18.
In European equity markets on Tuesday, the Cac 40 in Paris ended down 0.5%, while the Dax 40 fell 1.4% in Frankfurt.
In New York, the Dow Jones Industrial Average was down 0.4%, the S&P 500 was 0.7% lower, and the Nasdaq Composite fell 1.4%.
Tech weakness came after Samsung Electronics closed down 6.9% despite forecasting a bumper increase in second quarter profit.
Kathleen Brooks, research director at XTB, said: “Samsung earnings could be a warning sign to the US. Although the South Korean company delivered a 19-fold increase in Q2 profit year-on-year, the stock sunk… as investors get nervous about the sustainability of chip stock earnings power.”
While Ipek Ozkardeskaya, senior analyst at Swissquote, said that the “ugly reaction to exceptional Samsung earnings is a reminder that, in richly valued markets, meeting expectations is no longer enough”.
On Wall Street, Intel fell by 11%, Applied Materials by 9.8%, Marvell Technology by 9.7%, Lam Research by 8.7%, and Micron Technology by 7.6%.
Advanced Micro Devices shed 8.1%, and Nvidia lost 1.5%.
Oil prices edged higher after British maritime security agency UKMTO said an “unknown projectile” had struck and caused a fire on an oil tanker off the coast of Oman near the Strait of Hormuz on Monday.
The incident occurred near one of the world’s most important energy shipping routes, despite a ceasefire between the US and Iran and efforts to secure a lasting peace agreement.
UKMTO said later that a tanker was hit by an unidentified projectile in the Strait of Hormuz and was believed to have suffered structural damage, but no casualties or environmental damage.
Brent crude for September delivery traded higher at 73.88 dollars a barrel on Tuesday, up from 72.13 dollars on Monday.
David Morrison, senior analyst at Trade Nation, said the incident “renewed fears of a fresh escalation in hostilities between the US and Iran”, and also “reminded investors that the Strait of Hormuz remains a dangerous place to transit”.
This continues to suggest that oil is “very oversold” at current levels, he said.
“This isn’t to say that prices can’t fall further, or even that they must correct upwards significantly. But it is a warning that investors could experience a spike in volatility after a selloff which has lasted for the best part of seven weeks,” he added.
The pound traded at 1.3376 dollars on Tuesday afternoon, up from 1.3354 on Monday. Against the euro, sterling firmed to 1.1704 euros from 1.1696 on Monday.
The US 10-year Treasury yield traded at 4.52% on Tuesday, stretched from 4.49% on Monday, and the US 30-year Treasury yield widened to 5.03% from 5.00% on Monday.
Gold traded at 4,144.14 dollars an ounce on Tuesday, down from 4,148.94 on Monday.
On the FTSE 100, Shell rose 3.4%, benefiting from the higher oil price, and after nudging up second-quarter guidance for integrated gas production.
In a trading statement, Shell also stated that gas trading results were “significantly higher” than in the first quarter amid the volatility caused by the Middle East war.
The London-based oil and gas exploration and production company expects second-quarter integrated gas output of 610,000 to 650,000 barrels of oil equivalent per day, down from 909,000 barrels in the first quarter, but up from prior guidance of 580,000 to 640,000 barrels.
Holding the FTSE 100 back were weaker mining stocks, with Fresnillo down 4.5%, Anglo American down 4.6%, Antofagasta down 3.3% and Endeavour Mining down 2.7%.
Tech investors Polar Capital Technology Trust and Scottish Mortgage Investment Trust fell 3.9% and 2.9%, respectively, amid the latest tech weakness.
On the FTSE 250, Keller jumped 23% and Victrex 16% after well-received trading updates.
London-based geotechnical specialist contractor Keller said it now expects 2026 revenue and underlying operating profit to be “materially” ahead of current market expectations of £3.15 billion and £223 million, respectively.
While Lancashire-based polymer solutions provider Victrex maintained its full-year guidance after reporting double-digit growth in revenue and volumes in the third quarter of its financial year.
ITV fell 7.3% on further consideration of the sale of its media & entertainment business, with JPMorgan downgrading the firm to “neutral” from “overweight”.
“ITV has not been able to secure the deal that we had hoped for,” JPMorgan analyst Daniel Kerven said, adding it was a “good deal for Sky”.
The biggest risers on the FTSE 100 were Associated British Foods, up 71.50p at 1,970.00p, Diageo, up 52.50p at 1,564.50p, Shell, up 98.50p at 3,011.00p, Babcock International, up 31.00p at 1,079.00p and Compass Group, up 0.93p at 32.50p.
The biggest fallers on the FTSE 100 were Airtel Africa, down 18.00p at 324.00p, Anglo American, down 174.00p at 3,610.00p, Fresnillo, down 129.00p at 2,723.00p, Halma, down 176.00p at 3,730.00p and Diploma, down 285.00p at 6,785.00p.
Wednesday’s global economic calendar has the minutes of the June Federal Open Market Committee meeting and an interest rate decision in New Zealand.
Wednesday’s local corporate calendar has full-year results from Jet2 and a trading statement from student accommodation provider Unite.
– Contributed by Alliance News
