FTSE 100 Live: Index Rose Amid Uncertainty Around US-Iran Peace Deal

The FTSE 100 opened 26 points higher at 10,365 on June 2, while European markets advanced. Investors weighed signs of progress in US-Iran peace talks. Sterling was quoted at $1.3466 early Tuesday, higher than $1.3447 at the close on June 1.

Gainers & Losers

Entain led the gainers, rising 3.84% to £584.40, while Kingfisher advanced 3.51% to £285.90 and Fresnillo gained 3.39% to £3,352. Also, Persimmon climbed 3.28% to £1,088, while Antofagasta added 3.16% to £4,271 and Barratt Redrow moved higher by 2.90% to £259.30.

On the downside, British American Tobacco declined 3.23% to £4,433, while Imperial Brands slipped 1.23% to £2,655 and BAE Systems fell 0.91% to £1,903.50. Among other laggards, Shell dropped 0.83% to £3,169.50, while GSK eased 0.76% to £1,828.50 and AstraZeneca edged lower by 0.61% to £13,352.

European Bond Yields Fall

Bond yields are falling across Europe as traders cut back their expectations for interest rate hikes by the Bank of England and European Central Bank later this year. The 10-year gilt yield is down by around 8 basis points to 4.98%, while the 5-year is down 6 basis points to 4.39% and the 30-year is down 6 basis points to 5.54%. 

Vapes Boost British American Tobacco

British American Tobacco is on track to deliver its full-year targets as it continues to pivot towards smokeless products. 

Revenue growth was led by products such as snus and vapes. The group credited the full-year expectations to a surge in US sales, “driven by combustibles, vapour” and modern oral products. It predicted the global cigarette industry volume would decline by 2.5% this year, ahead of previous guidance of 2%. 

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Paragon Takes a £21.5 Million Hit

Paragon’s profit declined in the first half of the financial year as the bank took a heavy impairment charge. 

The bank booked a £133.2 million pre-tax profit, down 4.9% from the same period last year. It came as growth was wiped out by a £21.5 million impairment charge that related to a legacy cohort of property development loans underwritten in 2022 and earlier. 

Paragon’s net interest income remained resilient, rising 2.2% to £253.4 million, while its net interest margin rose 3.08%. Paragon’s loan book grew nearly 4% to £16.6 billion.

Global Market View

In the US, the tech-heavy Nasdaq rose 0.4%, the S&P 500 added 0.3% and the Dow Jones Industrial Average edged 0.1% higher, marking fresh record highs as NVIDIA jumped over 6% after unveiling a new superchip for PCs.

In Asia, the Kospi rose 0.15% to 8,801.49 points, while Japan’s Nikkei 225 fell 0.3%. Taiwan’s TAIEX also jumped 0.48% to 45,557.15 points. In China, Hong Kong’s Hang Seng gained 2.42%. In India, both Nifty 50 and Sensex rose 0.39% and 0.49%, respectively.