7th Jul 2026 09:25
(Alliance News) - Stock prices in London opened mostly higher on Tuesday, with gains for oil majors and upbeat corporate updates offsetting weakness across Asian markets after stronger-than-expected UK house price data.
The FTSE 100 index opened up 47.09 points, 0.4%, at 10,697.75. The FTSE 250 was down 20.40 points, 0.1%, at 23,482.10, and the AIM all-share was down 3.71 points, 0.5%, at 775.03.
The Cboe UK 100 was up 0.5% at 1,062.43, the Cboe UK 250 was up 0.1% at 20,238.23, and the Cboe small companies was marginally lower at 18,418.40.
Fresh data showed UK house prices rose for the first time in four months during June as lower mortgage rates provided some support to buyers despite affordability pressures.
The newly rebranded Lloyds house price index, formerly the Halifax house price index, showed average house prices increased 0.2% in June to GBP299,330 from GBP298,812 in May, reversing the previous month's 0.2% decline and beating the FXStreet-cited consensus for a 0.1% increase.
Annual house price growth edged up to 0.6% from 0.5%, although prices were still down 0.4% on a quarterly basis.
Amanda Bryden, head of mortgages at Lloyds, said affordability remained stretched but easing mortgage rates were providing "some encouragement" for prospective buyers despite ongoing uncertainty over inflation and interest rate expectations.
In European equities on Tuesday, the CAC 40 in Paris was up 0.5%, while the DAX 40 in Frankfurt slipped 0.2%.
Attention was also on the opening of the Nato summit in Ankara, where defence spending remains high on the agenda.
German Foreign Minister Johann Wadephul rejected renewed criticism from US President Donald Trump over defence spending, insisting Germany was on course to raise core defence spending to 3.5% of gross domestic product by 2035 under commitments agreed by Nato allies.
"We are spending more than many of our partners," Wadephul said, adding that Germany's efforts were being recognised in Washington despite Trump's continued criticism.
The pound was quoted at USD1.3375 early Tuesday, higher than USD1.3354 at the London equities close on Monday. Against the euro, sterling rose to EUR1.1704 from EUR1.1696. The euro traded at USD1.1426, up slightly from USD1.1417, while the dollar eased to JPY161.95 from JPY162.34.
Back in London, Shell topped the FTSE 100 after lifting guidance for second-quarter integrated gas production and saying gas trading results would be "significantly higher" than in the first quarter as volatility linked to the Middle East conflict boosted trading performance.
The oil major now expects integrated gas production of 610,000 to 650,000 barrels of oil equivalent per day, above previous guidance, despite production remaining below first-quarter levels because of disruption to operations in Qatar following missile attacks earlier this year.
Shell also upgraded guidance for upstream production and forecast stronger refining and chemicals margins ahead of its second-quarter results later this month.
Meanwhile, Shell has agreed to sell its fuel supply business in South Africa to Abu Dhabi National Oil Co, also known as Adnoc, in a USD1 billion deal, which is expected to close in 2027.
BP rose 1.6% after it on Monday announced that it agreed to sell its non-operated interest in the Bay du Nord offshore project in Canada to Equinor.
On the FTSE 250, Keller Group surged 17% after upgrading its full-year outlook, saying revenue and underlying operating profit are now expected to come in materially ahead of current market expectations of GBP3.15 billion and GBP223 million, respectively.
The geotechnical engineering specialist said its North American business had delivered an exceptional performance, driven by robust infrastructure and data centre demand, while Europe and the Middle East also continued to trade strongly.
CEO James Wroath said: "Our North American operations, which account for around 60% of the group's revenue, have delivered an exceptional performance across the US and Canada so far this year, supported by increased activity in infrastructure and data centres. This reflects Keller's ability to identify and respond to structural megatrends and pivot to subsectors with strong customer demand which drive business growth."
Victrex climbed 16% after maintaining full-year guidance alongside an 18% increase in third-quarter revenue to GBP84.5 million as sales volumes rose 17%.
The polymer manufacturer said momentum seen during the second quarter had continued, supported by growth in aerospace, electronics and its Sustainable Solutions business, while medical markets had begun to stabilise.
Victrex reiterated guidance for underlying pretax profit of GBP42 million to GBP44 million this year and said it remained on track to deliver at least GBP10 million of annualised cost savings by financial 2027.
Among smaller caps, Clean Power Hydrogen plunged 90% after its shares returned to trading following a GBP2.5 million fundraising, including a GBP500,000 retail offer priced at 1.5 pence per share.
Petards rose 10% after announcing more than GBP900,000 of new rail and defence orders. The company said the contracts include military aerospace safety equipment, rail systems and border security technology, with deliveries scheduled through 2026 and 2027.
In Asia on Tuesday, the Nikkei 225 index in Tokyo closed 2.2 lower%. In China, the Shanghai Composite ended down 1.3%, while the Hang Seng index in Hong Kong closed 0.6% lower. The S&P/ASX 200 in Sydney closed down 0.3%
In the US on Monday, Wall Street ended higher, with the Dow Jones Industrial Average up 0.3%, the S&P 500 up 0.7% and the Nasdaq Composite up 1.1%.
The yield on the US 10-year Treasury was quoted at 4.50%, widening from 4.49%. The yield on the US 30-year Treasury was quoted at 5.02%, widening from 5.00%.
Gold was quoted at USD4,129.30 an ounce early Tuesday, down from USD4,148.94 on Monday. Brent crude traded at USD72.80 a barrel, up from USD72.13.
Still to come on Tuesday's economic calendar, Canada releases trade balance data and the Ivey PMI. In the US, investors will monitor trade balance figures, the Redbook index and consumer inflation expectations.
By Eva Castanedo, Alliance News senior economics reporter
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