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(Alliance News) - It was another green session in London on Tuesday, but the FTSE 100 was sitting behind peers in Frankfurt and Paris, as investors continue to take heart from the UK government unwinding all of the proposals put forward in its disastrous mini-budget.
The FTSE 100 index rose 16.50 points, or 0.2%, to 6,936.74 on Tuesday. Despite being able to prop its head above the 7,000 mark for the first time in over a week, the blue chip index started to slide towards the no-change mark as the session dragged on.
The FTSE 250 closed up 26.47 points, or 0.2%, at 17,529.31. The AIM All-Share added 7.82 points, or 1.0%, to 795.48.
The Cboe UK 100 closed 0.3% higher at 693.77, the Cboe UK 250 rose 0.3% to 15,032.73, and the Cboe Small Companies ended 0.5% higher at 12,456.70.
"Today’s gains have been broad-based as sentiment settles down after the ructions of the last two weeks, with decent gains for the likes of Smurfit Kappa, Rolls Royce and DS Smith," CMC Markets analyst Michael Hewson said.
Smurfit gained 6.4%, Rolls-Royce 3.8% and DS Smith added 3.8%.
Joshua Mahony, senior market analyst at IG, added: "European markets have continued the upbeat tone that has permeated through financial markets this week, with the DAX a particular outperformer after gaining 2%."
In European equities on Tuesday afternoon, the CAC 40 in Paris was up 0.4% and the DAX 40 in Frankfurt rose 0.9%.
"The FTSE 100 has unsurprisingly lagged its European and US counterparts, highlighting how a resurgent pound will typically mute any recovery as internationally-focused stocks see their earnings devalued," Mahony continued.
"While the UK is filled with concern over rising costs thanks to Jeremy Hunts less generous stance as chancellor, the prospect of a tighter economic environment brings expectations that inflationary forces can be trimmed earlier than would be the case under Kwarteng’s pro-growth budget. Markets are clearly more optimistic after the UK’s missteps provided a stark warning that an expansionary government stance would simply prolongue the crisis if pitched against a central bank seeking to drive down inflation."
Sterling fetched USD1.1291 late Tuesday UK time, down sharply from USD1.1409 late Monday.
Liz Truss survived a meeting of the Cabinet without any ministers calling for her to quit, but Tory members and voters appear to be turning on her.
A snap poll of party members released on Tuesday saw more than half respond that she should resign and 83% say she was doing a bad job.
Downing Street insisted the Cabinet fully supported the prime minister and stressed that Truss was focused on the challenges facing the country rather than party infighting.
The challenge facing the prime minister was underlined by a YouGov survey of 530 Conservative party members on Monday and Tuesday which saw 55% say she should resign, and only 38% back her staying on.
In London, Rio Tinto closed down 1.5%.
The mining giant slightly toned down annual guidance and warned of "downside risks to demand" for commodities on Tuesday.
The miner now expects 2022 Pilbara iron ore shipments in the bottom end of a 320 million to 335 million tonnes range. Shipments of 322 million tonnes were achieved in 2021.
Ibstock added 4.9%.
The clay bricks manufacturer said it traded ahead of expectations in the third quarter. Ibstock now expects annual results "to be above our previous expectations". In the third quarter of 2022, clay sales volumes were "marginally" higher year-on-year, while its performance in concrete was in line with expectations.
Moneysupermarket.com gained 5.3%. The price comparison site operator now expects annual earnings before interest, tax, depreciation and amortisation to be at the upper end of market expectations.
Broker Peel Hunt put the range of market expectations for annual Ebitda at GBP108.5 million to GBP115.5 million. Adjusted Ebitda in 2021 was GBP100.5 million.
For the three months ended September 30, the Chester, England-based firm reported total revenue of GBP101.9 million, up 33% from a year prior.
Ninety One gave back 4.8%.
The London and Cape Town-based money manager said assets under management slipped to GBP132.3 billion as at September 30, down 1.9% from GBP134.9 billion at June 30.
On an annual basis, assets declined by 5.5% from GBP140.0 billion. On a half-year basis, it was down by 8.1% from GBP143.9 billion as at March 31.
In New York stocks were called up on Tuesday, following a better than expected quarterly report from Goldman Sachs. The Dow Jones Industrial Average and the S&P 500 were both up 0.6%, and the Nasdaq Composite was 0.4% higher.
UBS said Goldman's quarterly figures were "roughly" in line with consensus and has kept its 'neutral' rating on the investment bank.
For the three months that ended September 30, Goldman Sachs reported net profit of USD3.07 billion, down 43% from USD5.28 billion in the same period last year.
Diluted earnings per share fell 45% to USD8.26 from USD14.93.
UBS noted its forecast was at USD6.71, with market consensus at USD7.69. The beat was thanks to lower-than-expected credit provisions and a better than expected performance from Goldman's Asset Management unit.
Net revenue was USD11.98 billion, down 12% from USD13.61 billion a year before. The fall in revenue resulted from significantly lower net revenue in Investment Banking and Asset Management, Goldman said. This was partially offset by higher net revenues in Global Markets and Consumer & Wealth Management.
Goldman's largest division, Global Markets - which made up 52% of the bank's revenue - recorded an 11% increase in revenue to USD6.20 billion.
It was trading 2.6% higher in New York.
The euro traded at USD0.9826, up from USD0.9810 late Monday. Against the yen, the dollar improved to JPY149.24 from JPY148.77.
A barrel of Brent oil was priced at USD88.97 late Tuesday, down from USD91.70 late Monday. An ounce of gold fell sharply to USD1,647.70 from USD1,661.00.
In the international economics events calendar on Wednesday, the headline event will be a consumer prices reading in the UK at 0700 BST, followed by consumer prices from the eurozone at 1000 BST and US housing starts at 1330 BST.
In the local corporate calendar, there is quarterly figures due from Antofagasta, BHP, Hargreaves Lansdown and Just Eat Takeaway. Online retailer ASOS will issue its full-year results.
By Paul McGowan; paulmcgowan@alliancenews.com
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