FTSE 100 edges higher as oil offsets defence slide
2024.06.25 03:46
(Reuters) – UK’s edged higher on Tuesday as gains in energy shares offset declines in defence stocks, while investors stayed cautious ahead of economic data that could sway expectations on the path of U.S. and UK interest rates.
The blue-chip FTSE 100 rose 0.1% at 8,287.40 points, while the mid-cap dipped 0.3% at 0716 GMT.
Energy majors Shell (LON:) and BP (NYSE:) rose more than 1% each as crude prices steadied near recent highs. [O/R]
Shares of aerospace and defence firms like Melrose Industries, Rolls-Royce (OTC:) and Senior PLC fell in the range of 2.6% and 5.9% after European aerospace group Airbus cut its industrial and financial guidance for the year.
Traders largely refrained from placing big bets ahead of the U.S. personal consumption expenditure data (PCE), due Friday even as they banked on the numbers to show a renewed moderation in inflation.
UK gross domestic product (GDP) is also due this week and could potentially add to Bank of England (BoE) policymakers’ confidence for an interest rate cut in August.
Comments from BoE officials last week had revived some hopes for an August cut, which were partially tempered by a strong retail sales reading on Friday.
Adding to caution is London’s political landscape, with the parliamentary elections on July 4. Investors expect the BoE to refrain from releasing minutes of its meeting ahead of the election.
The BoE is scheduled to meet again on August 1st, nearly a month after the election.
