LONDON MARKET MIDDAY: FTSE up as midcaps outpace blue chips; oil lower

Tue, 02nd Jun 2026 12:19

(Alliance News) - Stock prices in London were higher at midday Tuesday, supported by strength in miners and mid-caps, as investors weighed eurozone inflation data and developments in the Middle East.

The FTSE 100 index was up 36.92 points, 0.4%, at 10,375.87. The FTSE 250 was up 185.76 points, 0.8%, at 23,431.63, and the AIM all-share was up 0.13 points, marginally higher at 819.37.

The Cboe UK 100 was up 0.5% at 1,032.36, the Cboe UK 250 was up 0.8% at 20,143.61, and the Cboe small companies was up 0.8% at 19,026.83.

During her visit to Beijing, UK Foreign Secretary Yvette Cooper said the UK's engagement with China, the world's second-largest economy, is key to strengthening position at a time of heightened global instability.

Cooper earlier acknowledged "areas of disagreement" between London and Beijing but insisted that approaching discussions with "candour and respect" would help increase mutual understanding of one another.

In European equities on Tuesday, the CAC 40 in Paris was up 0.8%, while the DAX 40 in Frankfurt was up 1.0%.

On the macro front, eurozone inflation accelerated in May, according to a flash estimate from Eurostat.

The harmonised index of consumer prices rose 3.2% annually in May, picking up from a 3.0% increase in April and in line with FXStreet-cited consensus. On a monthly basis, however, inflation slowed sharply to 0.1% in May from 1.0% in April.

Eurostat said the acceleration was driven largely by energy prices, which were estimated to have climbed 10.9% on-year in May, compared with 10.8% in April. Excluding energy, prices rose 2.4% annually in May, up from 2.2% in April.

Geopolitical developments also remained in focus. US President Donald Trump said a framework agreement with Iran could be reached "over the next week", according to ABC News.

The broadcaster reported that Trump told a correspondent in a phone interview that a memorandum of understanding aimed at reopening the Strait of Hormuz and extending the current ceasefire could be finalised and agreed within days.

"I still have to get a few more points," Trump said, adding that he had not yet formally signed off on the deal.

There has been no public confirmation from Iran that an agreement is imminent.

Trump also said Israel and Hezbollah had agreed to halt hostilities. He said he had spoken with Israeli Prime Minister Benjamin Netanyahu and described a "very good call", conducted through unnamed representatives, with the Hezbollah militant group.

According to Trump, Netanyahu agreed to cancel a planned military raid on Beirut, while Hezbollah committed that "all shooting will stop".

His comments came after Iran's Tasnim news agency reported that Tehran had suspended dialogue with mediators in protest at Israel's expanding offensive in Lebanon against Iran-backed Hezbollah.

Brent oil was trading at USD93.57 a barrel early Tuesday, down from USD97.22 late Monday.

In currency markets, the pound was quoted at USD1.3468 midday Tuesday, compared to USD1.3447 on Monday. Against the euro, sterling was little changed at EUR1.1567 from EUR1.1570 a day prior.

The euro stood at USD1.1643, up from USD1.1624. Against the yen, the dollar was trading at JPY159.73, slightly up from JPY159.64.

Stocks in New York were called lower. The Dow Jones Industrial Average was called down 0.4%, the S&P 500 index down 0.2%, and the Nasdaq Composite down 0.1%.

The yield on the US 10-year Treasury narrowed to 4.43% from 4.51%. The yield on the US 30-year Treasury narrowed to 4.95% from 5.01%.

Back in London, Fresnillo led the FTSE 100, up 4.0%, tracking higher gold prices.

Entain followed, up 3.5%, amid speculation over the future ownership of BetMGM after billionaire Barry Diller's People Inc, made an USD18 billion bid for MGM Resorts International. The proposal has fuelled market talk that MGM could ultimately look to buy out Entain's stake in the US sports betting and gaming joint venture.

At the bottom of the index, British American Tobacco fell 4.3% after saying it expects lower global cigarette industry volumes.

On the FTSE 250, the biggest loser was GB Group, down 11%, as it flagged a near-term margin hit after one-off costs led to a hefty loss.

Elementis rose 4.9% after announcing plans for a EUR30 million share buyback following completion of its pharma sale.

Among smaller caps, BSF Enterprise surged 44% after noting that its subsidiary Lab-Grown Leather has published a white paper. Gelion advanced 18% after entering into a three-year collaboration with Nissan Technical Centre and the University of Oxford.

Gold was quoted at USD4,533.42 an ounce at midday Tuesday, up from USD4,472.82 on Monday.

In the UK, data from the Bank of England showed that mortgage borrowing slowed in April, though approvals for house purchases rose and business borrowing increased.

Net borrowing of mortgage debt by individuals fell to GBP4.4 billion in April from GBP6.8 billion in March, below the previous six-month average of GBP5.1 billion.

Despite the slowdown in borrowing, net mortgage approvals for house purchases – an indicator of future lending activity – increased to 65,900 in April from 64,000 in March. Approvals remained above the previous six-month average of around 63,100. Remortgaging approvals were broadly unchanged.

The effective interest rate on newly drawn mortgages edged up to 4.08% in April from 4.03% in March. Meanwhile, the rate on the outstanding stock of mortgages slipped slightly to 3.92% from 3.93%.

Consumer credit borrowing was unchanged at GBP1.9 billion in April, matching the previous six-month average. Within that total, credit card borrowing increased to GBP800 million from GBP700 million, while borrowing through other forms of consumer credit, including personal loans and car finance, declined to GBP1.0 billion from GBP1.2 billion.

The annual growth rate of consumer credit eased to 8.8% from 9.0% in March.

By Eva Castanedo, Alliance News reporter

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