Mining stocks climbed on stronger commodity prices, while weaker energy shares and a lower sales outlook from Smith & Nephew limited gains in the blue-chip index.
The FTSE 100 gained 0.3% on Tuesday, underperforming other major markets as a rally in mining stocks was partly offset by weakness in energy shares and a sharp drop in Smith & Nephew. Investor sentiment improved on expectations that the US and Iran could reach an agreement, easing fears of supply disruptions and sending oil prices lower. BP fell more than 4.5% despite stronger-than-expected quarterly results, while Shell lost around 2.4%. Smith & Nephew dropped more than 6% after lowering its full-year sales growth outlook. Mining shares advanced strongly, with Antofagasta up around 7%, Anglo American gaining 5.3%, Fresnillo rising 4.4%, and Rio Tinto, Endeavour Mining and Glencore also moving higher on firmer commodity prices. HSBC was broadly unchanged despite solid earnings and a $1 billion buyback announcement.