The FTSE 100 was higher on Wednesday as corporate updates continued to impress and hopes of a deal in the Middle East boosted sentiment.
It was the turn of Next and Glencore to reveal positive numbers on Wednesday, with both stocks among the FTSE 100’s top risers.
A supposed deal to reopen the Strait of Hormuz, due on Wednesday, was also lifting the mood, although we have been here before, and the market’s positive response to such claims is diminishing.
Nonetheless, the FTSE 100 was 0.15% higher at the time of writing.
“The FTSE 100 ticked higher on positively received corporate updates and as hopes continue to rise around diplomatic efforts in the Middle East,” said AJ Bell investment director Russ Mould.
“There is increasing optimism about a deal to reopen the Strait of Hormuz which means Brent crude oil prices are currently bubbling around the $80 per barrel mark, well short of their recent highs.
“The mining sector did much of the heavy lifting for the FTSE 100 after Glencore’s bumper results, though HSBC remained out in the cold after the scale of its buyback announced alongside yesterday’s results continued to disappoint investors.”
Glencore was 3.4% higher at the time of writing, leading the mining sector higher after revealing a significant uptick in its energy trading business due to disruptions in the Middle East.
Next shot up the leaderboard and took the top spot on the back of yet another sales beat and profit guidance uplift. The 6% increase in shares seems almost strange, because traders should be used to Next knocking it out of the park and price in the good news before results hit the wires.
Adam Vettese, market analyst for etoro, said: “Next has once again shown why it remains the standout performer in UK retail. This morning’s trading update revealed second quarter full price sales up 9.2%, more than double the 4% it had guided, which in turn prompted a £25 million lift in full year profit guidance to a little shy of £1.25 billion.”
“Shares are higher as a result, rewarding investors who have grown accustomed to the retailer quietly, but consistently, beating its own forecasts.”
HSBC was the FTSE 100’s top faller, losing 3.5%, and keeping gains in check on Wednesday.