Oil stocks support FTSE 100, midcaps tumble as Iran attack report spooks markets
By Khushi Singh and Lisa Pauline Mattackal
(Reuters) -The UK’s benchmark FTSE 100 rose on Tuesday, with gains primarily driven by the energy sector, as investors worried about escalating conflict in the Middle East after a report that Iran was planning an attack on Israel
The blue-chip FTSE 100 rose 0.5%, while the more domestically-focussed midcap FTSE 250 index lost 0.7%.
Global stocks broadly slipped, while oil prices reversed early losses and jumped after a White House official said the U.S. has indications Iran is preparing to imminently launch a ballistic missile attack against Israel.
The oil and gas index jumped 2.2%, notching up its best day in two months.
The precious metal miners index built on earlier gains, rising 1.9% as gold prices gained on demand for the safe haven asset. [GOL/]
An index of aerospace and defence stocks also rose 1%.
On the other hand, the personal goods index slipped 3.6%, weighed by a 4.1% loss in Burberry after brokerages reduced their price target on the luxury retailer.
The pound also lost 0.7% against the U.S. dollar, boosting the export-oriented FTSE 100.
Meanwhile, prices in British shops fell at the fastest pace in more than three years in September, adding to signs that the inflation squeeze on consumers has faded.
However, factory activity data showed UK manufacturers turned sharply more pessimistic as worries about the new government’s first budget combined with concerns about the Middle East and strong inflation pressures.
The benchmark index recorded gains of about 0.9% between July and September, while the midcap index outpaced it with gains of 3.8% during the same period.
Among single movers, shares in Mulberry slipped 3.2% after the luxury brand rejected sportswear retailer Frasers’ $111 million takeover proposal.
Greggs lost 5.8%, despite maintaining its full-year outlook, as underlying sales growth slowed in the latest quarter.
(Reporting by Khushi Singh in Bengaluru; Editing by Mrigank Dhaniwala, William Maclean)
