London Stock Exchange sign on wall ©jam_90s
Major European stock markets moved higher on Tuesday, with investors weighing elevated oil prices and government bond yields alongside company-specific developments.
Germany’s DAX gained 0.7%, while the UK’s FTSE 100 and France’s CAC 40 were both up 0.1%.
Oil markets remained sensitive to developments in negotiations between the United States and Iran over the Strait of Hormuz. Reports indicated that Iranian officials were not optimistic that an agreement would be reached before the US midterm elections in November.
Front-month Brent crude futures rose as high as $107.87 a barrel earlier in the session before falling to $104.40, more than 1% below the previous close.
Mining and Pharmaceutical Shares Support FTSE 100
In London, mining and pharmaceutical stocks were among the main contributors to the FTSE 100’s advance.
Antofagasta (LSE:ANTO) gained 3.3%, while Anglo American (LSE:AAL) rose 3%. Glencore (LSE:GLEN), Fresnillo (LSE:FRES) and Rio Tinto (LSE:RIO) advanced between 1.7% and 2.2% as precious metals prices remained firm.
Among pharmaceutical companies, GSK (LSE:GSK) gained 2.5% and AstraZeneca (LSE:AZN) advanced 1.7%.
Weir Group (LSE:WEIR), Convatec Group (LSE:CTEC), InterContinental Hotels Group (LSE:IHG), Spirax Group (LSE:SPX), Halma (LSE:HLMA), Diploma (LSE:DPLM) and Metlen Energy & Metals (LSE:MTLN) were also among the gainers.
Energy stocks moved lower, with Ithaca Energy (LSE:ITH) falling 4.2%, BP (LSE:BP.) declining 3% and Shell (LSE:SHEL) losing 1.8%.
British American Tobacco (LSE:BATS), Sage Group (LSE:SAGE), Admiral Group (LSE:ADM), Unilever (LSE:ULVR) and Barratt Redrow (LSE:BTRW) declined between 0.8% and 1.9%.
Infineon and Siemens Energy Lead Gains in Germany
In Frankfurt, Infineon Technologies (TG:IFX) rose 4.8% and Siemens Energy (TG:ENR) gained 4.3%. The moves came alongside a Reuters report concerning Anthropic’s plans to use public-market funding as it pursues growth linked to artificial intelligence.
Vonovia, Siemens, Heidelberg Materials, MTU Aero Engines, BMW, Deutsche Bank, Volkswagen, Hochtief, Commerzbank and Scout24 also traded higher.
Fresenius Medical Care fell nearly 2% after Berenberg lowered its price target for the shares and withdrew its buy recommendation.
Bayer declined 2.5%, while Daimler Truck Holding, Hannover Re, Munich Re and Rheinmetall were also lower.
Legrand Rises After Raising 2030 Targets
In Paris, Legrand gained nearly 8% after raising its 2030 targets, citing expected growth in data centres and the energy transition alongside its profitability objectives.
STMicroelectronics, Schneider Electric, Bureau Veritas, Safran, Accor and Stellantis advanced between 1% and 3.5%.
TotalEnergies, Eurofins Scientific, Dassault Systèmes, Vinci, Danone and Carrefour declined between 1% and 2.7%.
UK Shop Price Inflation Slows to 1.4%
In economic data, the British Retail Consortium reported that UK shop price inflation eased to 1.4% in September from 1.5% in August, with promotions and discounting contributing to the slowdown.
The September reading remained above the three-month average of 1.3%.