London's FTSE 100 rises as financials, defence offset energy weakness

By Reuters News

- UK's FTSE 100 edged higher on Tuesday as heavyweight financial and defence stocks offset weakness in energy shares, while investors assessed hawkish comments from Bank of England Deputy Governor Clare Lombardelli.

The blue-chip FTSE 100 index .FTSE rose 0.2% to 10,811.28 points by 1033 GMT, while the midcap FTSE 250 .FTMC was up 0.6%.

  • Aerospace and defence .FTNMX502010 led sectoral gains, rising 2.4%, as Rolls-Royce RR.L climbed 3.3% to rank among the top performers on the FTSE 100. Melrose Industries MRON.L and Babcock International Group BAB.L also advanced over 1% each

  • Financials provided the biggest boost to the index, with Lion Finance Group BGEO.L rising 3.6% to top the blue-chip index, while Prudential PRU.L and Barclays BARC.L gained 3% and 2.2%, respectively

  • On the flip side, the energy sector .FTNMX601010 led declines, falling 2.2% after Brent crude slipped below $90 a barrel as US President Donald Trump downplayed further military action against Iran, easing Middle East supply concerns O/R

  • Investors parsed comments from BoE Deputy Governor Clare Lombardelli, who said in a Guardian interview that she would not rule out a December rate hike​‌

  • Money markets priced in a roughly 50% chance of a 25-basis-point BoE rate hike in December​‌, according to LSEG data

  • On the data front, British retail spending rose modestly in October despite higher petrol prices, as households pared back spending in some categories ahead of Black Friday deals, a British Retail Consortium survey showed

  • Britons bought more essentials after the government's "Be Ready" campaign launched, though Worldpanel by Numerator found no signs of panic buying

  • Among individual movers, Vodafone VOD.L fell 1.1% even after the telecoms firm raised its full-year profit and cash flow guidance

  • Marks & Spencer MKS.L rose 1.9%, as the clothing and food retailer forecast profit growth ahead of sales over the medium term

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