FTSE 100 outperforms European counterparts as oil and metals prices rebound
London's blue chip index outperformed its European counterparts on Tuesday, thanks to a rebound in oil and metals prices which propped up major commodity stocks.
The FTSE 100 ended the day up 0.77% or 57.09 points at 7,434.82, led by mining stocks including Antofagasta up 66p at 951p, Anglo American up 67p at 1,171.5p and Glencore up 118p to 330.65p, on the back of higher copper and iron ore prices.
Meanwhile, Brent crude prices rose 2.7% to 49.97 US dollars per barrel, pushing up shares in UK oil giants including BP which rose 6.7p to 446.45p and Royal Dutch Shell's "B" shares which climbed 28.5p to 2,093.5p.
Investors were celebrating news that Saudi Arabia, one of the world's biggest oil producers, was renewing commitments to slash output in hopes of tackling the global crude glut.
David Madden, a market analyst at CMC Markets UK, said: "BP and Royal Dutch Shell are in positive territory as the energy market is stronger as Saudi Arabia stated it would cut its oil exports in August.
"The commodity stocks are very sensitive to the underlying metals and energies, and the FTSE 100 has a disproportionately large amount of natural resource companies when compared with other European indices."
Across Europe, the French Cac and German Dax rose 0.65% and 0.45%, respectively.
Currency market moves were relatively subdued, with sterling trading just 0.1% higher against the US dollar at 1.303.
Versus the euro, the pound was flat at 1.118.
In UK stocks, Virgin Money plunged 26.9p to 279.6p after the bank sounded a note of caution on the UK housing market, saying it may have to navigate "areas of weakness" in the near term.
Jimmy Choo soared 33.25p to 228.25p following news that the luxury shoe brand is to be acquired by US fashion brand Michael Kors in an £896 million deal.
Domino's Pizza Group fell 15.5p to 263.7p.
It comes after the company revealed marked decline in like-for-like half-year sales, which grew only 2.4% compared with 13% a year earlier, which Domino's said came amid a "softer consumer environment and a slowdown in the overall delivery market".
Shares in Provident Financial tumbled 134p to 2,163p after revealing that pre-tax profits dropped by 22.6% to £115.3 million in the six months to the end of June, after suffering disruption while shifting its home credit business to a new model.
Fuller Smith & Turner shares jumped 60p to 1,093p, having reported that summer weather helped boost sales across the business over the last four months.
The biggest risers on the FTSE 100 were Antofagasta up 66p at 951p, Anglo American up 67p at 1,171.5p, Glencore up 18p to 330.65p, and Rio Tinto up 151p to 3,475p.
The biggest fallers on the FTSE 100 were Provident Financial down 134p to 2,163p, British American Tobacco down 130p to 5,283p, Morrison Supermarkets down 5.4p to 241.2p, and WPP down 32p at 1,561p.