The FTSE 100 produced respectable gains on Tuesday as investors geared up for Friday’s Non-Farm Payrolls and the next major instalment of economic news with the power to move the dial for equities.
London’s leading index was 0.4% higher at the time of writing.
“The FTSE 100 ticked higher on Tuesday morning with oil prices remaining steady despite Israel launching a ground offensive against Hezbollah in Lebanon,” said AJ Bell investment director Russ Mould.
“Gold prices ticked higher, within sight of record highs amid the Middle East turmoil, helping to lift precious metals miners on the UK stock market.
“The top riser was advertising group WPP on news it has secured a favourable outcome from major client Unilever’s latest media review, keeping some duties and adding new ones. Losing Unilever as a client would have been a major blow, so it was no surprise to see investors expressing some relief.”
Unilever is one of the world’s biggest advertising spenders and news WPP would keep the contract sent shares 3% higher.
European stocks were also helped higher by further good news from the US and the S&P 500 hitting another record high. A strong session for US stocks can still have a positive impact on sentiment in Europe despite a breakdown in correlations after US indices left European counterparts in the dust during the AI rally over the past two years.
Investor focus will remain on the US later this week as markets receive the September Non-Farm Payrolls report. The report has sent waves through markets in recent months, and any big deviations from the consensus number promises choppiness in stocks as traders position for the next round of interest rate decisions.
We are also heading into the final weeks of the US election.