FTSE 100 opened slightly higher and gained 0.2% to 10,625.96 supported by a rebound in oil prices. However, wider momentum is still capped as global uncertainty surrounding the US-Iran ceasefire weighed on investor sentiment.
Crude prices are now hovering near $97 per barrel and are still 40% above pre-conflict levels. This scenario provides support to oil-linked stocks as BP climbed 2.47% to £576.60.
Among others, DCC advanced 1.91% to £5,075 while Glencore rose 1.83% to £573.10 as commodity sentiment stabilized. United Utilities Group rose 1.39% to £1,384, SSE gained 1.29% to £2,741 and Severn Trent advanced 1.28% to £3,233.
Despite gains in energy and utilities several consumer and industrial stocks declined. Reckitt Benckiser Group fell 2.62% to £5,204 while Croda International dropped 2.27% to £2,932. Mining stock Fresnillo slipped 1.85% to £3,556 while Experian declined 1.79% to £2,630.50. Games Workshop also edged lower by 0.69% to £18,620.
ITM Power has landed £86.5m in UK government support to scale up manufacturing. The group will receive a £40 million equity investment from Great British Energy together with a £46.5m million grant from Department for Energy Security and Net Zero but it is subject to approval.
The capital will go towards building a new 1GW manufacturing line in Sheffield for its new electrolyzer technology.
ITM said its cash guidance will also lift from £210 million to £215 million for the year, strengthening its balance sheet.
Gooch & Housego reported a rise in orders and revenue in the first half of the year. Revenue rose 9% to £81.9 million for the six months to March, while the order book climbed 16.5% to £167.3 million.
The group said demand from aerospace and defence remained robust, with increased inquiries from US, UK and European customers.
Net debt rose to £37 million as the group continues to invest in capacity and integration.
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Metlen reported a fall in profit before tax after revenue growth declined due to project delays. But shares still bounced over 2% in early trade. The company’s profit before tax tumbled 30% to €753 million (£665.8 million) from €1 billion the previous year.
Revenue jumped 25% to €7.1 billion and this is up from €5.6 billion, backed by a record performance in its renewable energy development arm.
In the US Dow Jones Industrial Average last night rose 2.9% and S&P 500 index lifted 2.5%. Nasdaq Composite advanced 2.8%. In Asia, Nikkei 225 retreated 0.6% and Hang Seng index slipped 0.4% after yesterday’s strong session.
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