The FTSE 100 was steady on Tuesday as European traders took a steadier approach than US counterparts, who piled into technology shares overnight, pushing the NASDAQ 2.2% higher.
Oil prices were still in focus, with Brent trading just below $100 amid hopes of dialogue between the US and Iran at the UN General Assembly.
European-focused investors may be disappointed that a sharp rally in US technology shares overnight didn’t translate into a strong session for the FTSE 100 or German DAX, which were little changed.
“After the return for risk appetite which saw the Nasdaq advance to a new record last night, there was a more measured feel to proceedings in Asia and Europe on Tuesday,” said AJ Bell investment director Russ Mould.
“Bitcoin – a key measure for investors’ craving for riskier assets – took a step back from its recent rally but is still up more than 10% since last Friday.”
“After falling for four straight sessions and briefly dipping below $100 per barrel, Brent crude oil prices ticked higher as investors wait to see if Donald Trump meets with his Iranian counterpart Masoud Pezeshkian on the sidelines of the UN General Assembly.”
The FTSE 100 flipped between negative and positive territory on Tuesday, trading almost dead flat at the time of writing.
Corporate updates drove the biggest moves in London on Tuesday, with Kingfisher and Smiths Group occupying the top two spots on the FTSE 100 leaderboard.
Kingfisher was the top riser, soaring 9% after upgrading its profit forecast on the back of cost-saving measures that helped boost margins.
Adam Vettese, market analyst for etoro, said: “A sharp jump at the open tells us that investors had been waiting for permission to believe the self-help story. Kingfisher did not deliver a housing boom or a sudden rush of weekend warriors into B&Q. It delivered something more useful in this market; proof that margins, mix and cost control can still grow profits when like-for-like sales barely twitch.”
“The 70 basis point gross margin lift and the upgraded full year profit range matter more than the 0.3% underlying sales figure. Trade, e-commerce and the marketplace are no longer plans on the drawing board, they are changing the shape of the business. Screwfix continues to steal share, Poland and Spain are doing the heavy lifting, and even a weather hit France did not derail the numbers.”
Smiths Group shares benefited from a new share buyback scheme, helping boost the stock by 5.5%. JD Sports rose 3% a day after announcing expansion into Mexico through a franchise model.
BP was the FTSE 100’s top faller as oil prices stabilised.