FTSE 100 Live: Index Opens Higher at 10,679.5 as Shell Leads Gains and Oil Climbs

The FTSE 100 traded 28 points higher at 10,679.5 as NATO leaders gathered in Ankara for a two-day summit and domestic house prices recovered strongly on a monthly basis. Meanwhile, Brent crude futures rose 1.33% to $72.95 a barrel. US West Texas Intermediate (WTI) gained 1.33% to $69.46 ‌a barrel.

Sterling was quoted at $1.3384 early Tuesday, higher than $1.3354 at the close on Monday. Against the euro, sterling rose to €1.1707 from €1.1696 a day prior.

Gainers & Losers

On the upside, Shell rose 2.76% to £2,993, while Burberry Group advanced 2.24% to £1,117.50. Unilever gained 2.21% to £4,657.50, and Rentokil Initial moved higher by 2.05% to £453.80. London Stock Exchange Group added 1.90% to £9,020, while RELX climbed 1.88% to £2,438.

On the downside, Rio Tinto declined 2.02% to £6,894, while Antofagasta slipped 2.28% to £3,816. Anglo American fell 2.22% to £3,700, and Fresnillo moved lower by 2.21% to £2,789. Endeavour Mining dropped 1.52% to £3,881, while Diploma eased 0.78% to £7,015.

Shell Gets Cash Boost

Energy giant Shell is set to land a massive cash boost for the second quarter, reversing a heavy $11.2 billion cash drain from the first three months of the year. 

The firm expects a cash inflow of between $1 billion and $6 billion for the second quarter. The turnaround follows a swing in energy markets after a rocky start to the year, where Shell was forced to tie up billions of dollars in cash to back up its energy trades. 

The US-Iran war saw Brent crude reach above $110 a barrel amid major shipping disruptions in the Strait of Hormuz. This allowed Shell’s commodity trading division to perform “significantly higher” than it did in the first quarter. 

The price increase also handed Shell a sharp increase in its processing profits, with its refining margin surging to around $20 per barrel, up from $17 in the first quarter. This prompted the firm to run its oil refineries at virtually full capacity (around 100%). 

Keller Upgrades Profit Forecast

Keller has upgraded its profit and revenue forecast after a surge in demand for data centres. The engineering firm said its revenue and operating profit would now be “materially ahead” of the market estimates of £3.2 billion and £223 million respectively. 

“Our North American operations, which account for around 60 per cent of the group’s revenue, have delivered an exceptional performance across the US and Canada so far this year, supported by increased activity in infrastructure and data centres,” chief executive James Wroath said. 

UK House Prices Rose

House prices in the UK increased for the first time in four months in June, with the Lloyds House Price Index showing a 0.2% monthly gain, taking the average property price to £299,330 from £298,812 in May. 

Annual growth reached 0.6% from 0.5%. Northern Ireland led the regions with an annual growth of 7.4%, while London fell 1.1% year-on-year to £534,831. 

"Mortgage rates have eased from their recent highs, offering some encouragement to those considering a move," said Amanda Bryden, Head of Mortgages at Lloyds. 

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Global Market View

In US, the tech-powered Nasdaq led the gains with a 1.15% increase, the Dow Jones broke records, closing up 0.3% above 53,000 points for the first time at 53,055, while the S&P 500 added 0.7%.

In Asia on Tuesday, Nikkei 225 in Tokyo fell 2.2% to 68,256.96, while China’s Shanghai Composite was down 1.26%. Hong Kong’s Hang Seng declined 0.67%, and Australia’s S&P/ASX 200 slipped 0.31%. In India, Nifty 50 and Sensex both rose 0.17% and 0.13%, respectively.