UK's FTSE 100 hits three-week high on financials strength, falling bond yields
Oct 13 (Reuters) - Britain's blue-chip index rose to a three-week high on Tuesday, lifted by financial stocks, while retreating oil prices and easing bond yields also supported risk appetite.
The FTSE 100 index .FTSE rose 0.73% to 10,762.01 points to its highest since September 23 by 10:23 AM GMT, while the midcap FTSE 250 .FTMC was up 0.28%.
Oil prices dropped 2% on prospects of additional diesel supplies from Russia O/R
UK's 10-year benchmark gilt yields fell nearly 5 basis points to 5.40%
The broader banks sector .FTNMX301010 was up 1.2%; NatWest NWG.L advanced 2.6% after Barclays upgraded the stock to "overweight" from "equal-weight"
British finance minister John Healey will not raise capital gains tax to the same level as income tax, the FT reported on Tuesday, citing four sources
The International Monetary Fund said that Britain needs to keep deficit reduction on track
"John Healey will opt for a compromise Budget on Wednesday 28th October, with limited implications for the economy and the markets," said Ruth Gregory, deputy chief UK economist, Capital Economics, in a note
BP BP.L shares rose 1.3% to a six-month high after the energy giant estimated its third-quarter refining margins tripled from last year
Melrose Industries MRON.L led gains on the FTSE 100 with a 3.6% rise, after the GKN Aerospace owner said its Garden Grove plant in California was on track to resume operations by the fourth quarter
Premier Inn owner Whitbread WTB.L rose 2.2% to its highest since March after unveiling a five-year turnaround plan and recommending that shareholders vote against activist investor Corvex Management's demand for a board seat
Among other sectors, healthcare .FTUB2010 gained 1.7%, and precious metal miners .FTNMX551030 added 1.5%, tracking higher gold and silver prices