26th May 2026 12:00
(Alliance News) - Stock prices in London were higher at midday on Tuesday, as the FTSE 100 caught up with European peers after Monday's holiday, despite fresh US strikes against Iranian missile sites.
The FTSE 100 index was up 68.17 points, 0.7%, at 10,534.43. The FTSE 250 was up 193.54 points, 0.8%, at 23,360.30, and the AIM all-share was up 10.27 points, 1.3%, at 810.50.
The Cboe UK 100 was up 0.6% at 1,048.25, the Cboe UK 250 was 0.7% higher at 20,258.79, and the Cboe small companies was up 0.1% at 18,743.86.
In European equities on Tuesday, the CAC 40 in Paris was down 0.9%, while the DAX 40 in Frankfurt was down 0.5%.
Sterling was at USD1.3483 at midday on Tuesday, up from USD1.3441 at the London equities close on Friday. Against the euro, sterling was down slightly at EUR1.1577 from EUR1.1584.
The euro was up at USD1.1641 from USD1.1603. Against the yen, the dollar was little changed at JPY159.13 versus JPY159.12.
"The FTSE 100 was playing catch up to European counterparts on Tuesday after progress on a potential agreement between the US and Iran," said AJ Bell analyst Russ Mould.
Financial markets in the UK and the US were closed on Monday.
"However, continued doubts about the potential for a deal and an overnight pre-emptive US strike on Iran mean any euphoria is being kept in check. It's telling that other European indices dipped slightly after the gains they enjoyed yesterday when trading in London was suspended for the bank holiday," AJ Bell's Mould added.
Tehran and Washington have played down chances of striking a swift deal to end the war, which has pushed up energy prices and fuelled global inflation.
But top US diplomat Marco Rubio insisted on Tuesday that the blockaded Strait of Hormuz would reopen "one way or the other".
Brent oil was trading lower at USD98.35 a barrel at midday on Tuesday from USD104.22 on Friday, but was up from USD96.26 on Monday.
Stocks in New York were called higher. The Dow Jones Industrial Average was called up 0.5%, the S&P 500 index 0.8% higher, and the Nasdaq Composite up 1.2%.
The yield on the US 10-year Treasury was quoted at 4.49% on Tuesday, narrowed from 4.58% on Friday. The yield on the US 30-year Treasury slimmed to 5.01% from 5.14%.
Back in London, Kingfisher led the FTSE 100 as its shares climbed 3.9%.
The London-based home improvement products retailer said like-for-like sales for its first quarter to the end of April declined against a "soft market backdrop" but added it is on track to deliver its full year guidance.
The firm said first quarter sales rose 1.4% to GBP3.30 billion on a reported basis, but fell 0.9% on a like-for-like basis, as it cited a "strong prior year comparator".
AJ Bell analyst Russ Mould said: "Blaming the weather for weak trading is often seen in the 'dog ate my homework' category of excuses by the market, but the fact it has not forced any downgrades means Kingfisher has kept investors on side.
"Like-for-like sales did slide in its first quarter to reflect the soggy and chilly start to spring, but there were some bright spots alongside the clouds in the trading statement."
British Land shares were up 2.5% after Barclays raised its rating on the stock to 'overweight'. The price target is 465 pence.
Melrose Industries shares fell 4.4% as it said the evacuation zone around its facility in California had been downsized, as specialists work to resolve "a thermal issue" at the site.
The firm said an issue was identified on Thursday in a tank storing methyl methacrylate at GKN Aerospace's Garden Grove site. The incident prompted local fire authorities to issue mandatory evacuation orders for the surrounding area. Around 50,000 people were evacuated, AFP reported.
"When considering the risks facing GKN Aerospace owner Melrose, few investors would have had a potential explosion at a Californian manufacturing facility on their bingo card," said AJ Bell analyst Russ Mould.
"Keeping everyone safe is obviously more important than any future financial impact but the crisis is particularly unhelpful at a time when Melrose is already under pressure thanks to the impact of the Iran war on the aviation sector."
On the FTSE 250 index, shares in Atalaya Mining were up 3.6%.
The owner and operator of Proyecto Riotinto copper mine in southwest Spain reported lower first-quarter earnings and copper production, as heavy rainfall in Spain disrupted mining operations earlier in the year.
Revenue in the first quarter to March 31 fell 10% to EUR117.3 million from EUR130.7 million a year earlier. Pretax profit fell 5.6% to EUR35.3 million from EUR37.5 million, while earnings before interest, tax, depreciation, and amortisation declined 8.5% to EUR48.0 million from EUR52.5 million.
Chief Executive Officer Alberto Lavandeira said: "We delivered solid financial performance in the first-quarter of 2026 despite our lower production during the quarter. Since April, we have recovered a portion of this shortfall and remain focused on making further progress throughout the year."
On the AIM market, shares in Bradda Head Lithium jumped 43%.
The North American-focused lithium explorer secured a "key" drilling permit for the Whistlejacket lithium project in Arizona, US.
The Arizona State Land Department approved the Whistlejacket exploration and drilling geological field operations plan.
"This is an important development for Bradda Head Lithium that supports the rapid advancement of its Arizona lithium exploration portfolio. This is a key priority for Bradda," said Executive Chair Ian Stalker.
Union Jack Oil shares fell 19% as it swung to a pretax loss of GBP6.9 million in 2025 from a GBP406,218 profit in 2024.
Revenue fell 37% to GBP2.5 million from GBP3.9 million.
"I am confident that an increase in drilling, appraisal and development activity currently being evaluated in the pursuit of growth from our balanced UK and US portfolios has the potential for notable value creation for shareholders," said Executive Chair David Bramhill.
Gold was higher at USD4,534.60 an ounce at midday on Tuesday from USD4,520.92 late Friday.
Still to come on Tuesday's economic calendar is manufacturing sales data for Canada and the US house price index and consumer confidence data.
By Michael Hennessey, Alliance News reporter
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KingfisherBritish LandMelroseAtalaya MiningBradda Head LithiumUnion Jack