The FTSE 100 recorded its sixth consecutive session of gains on Tuesday, closing up 0.3% at 10,886.16, marking its most prolonged winning streak since May. This positive movement occurred despite the announcement of broader U.S. sanctions on Iran, which were largely shrugged off by the market as posing less immediate risk to global oil supplies. The index's 12-month gain now exceeds 16%. Market breadth was positive, with only 38 out of 100 shares finishing in the red.
Aerospace and travel companies were key drivers of the gains. Melrose Industries surged nearly 10% after announcing a September 28 target to resume full production at its Garden Grove facility and a $100 million settlement framework for a May incident involving an overheating chemical tank. The company's stock was up 48.2p at 510.2p. Other strong performers included Rolls-Royce Holdings, Polar Capital Technology Trust, and International Consolidated Airlines Group, all seeing gains exceeding 2.5%. The housing sector also contributed positively, with the homebuilders index rising 1.9% after the UK government pledged to spend £10 billion on lower-cost rental housing, including an initial £350 million for Vistry to deliver over 3,000 homes.
Conversely, some sectors faced downward pressure. RELX fell over 3%, and consumer heavyweight Diageo declined close to 2%. Energy majors BP and Shell also saw dips as crude oil prices fell more than 3%, with Brent crude trading at $89.31 a barrel, down from $92.74. Precious metal miners Fresnillo and Endeavour Mining slipped about 1% due to gold prices pulling back from recent highs. These declines were attributed to investors increasingly looking toward upcoming U.S. CPI inflation data, Federal Reserve Chair Kevin Warsh’s address, and Nvidia’s quarterly earnings report.
