Tuesday Morning Markets: FTSE Edges Higher as VTY and MRO Shares Jump

London shares are trading firmer on Tuesday, with the FTSE 100 up 0.3% and the FTSE 250 adding 0.2%, tracking a broadly positive tone across Europe. The DAX, CAC 40 and Euro Stoxx 50 have each risen 0.4% in early trade.

The standout mover in the blue-chip index is Melrose Industries (+8.1%), after the aerospace group said the Orange County District Attorney’s Office has closed its criminal investigation into May’s evacuation incident at GKN Aerospace’s Garden Grove facility in California, bringing no charges.

Melrose also launched a claims programme of up to $100 million for affected residents and businesses, and said GKN is targeting 28 September to resume full manufacturing operations.

Next (+1.7%) and Polar Capital Technology Trust (+1.3%) also made gains. On the downside, JD Sports (-1.3%), Endeavour Mining (-1.1%) and Smith & Nephew (-0.9%) led fallers.

In the mid-cap FTSE 250 space, Vistry Group rocketed 12.9% after being reconfirmed as a Strategic Partner under the government’s £39bn Social and Affordable Homes Programme, securing a £350 million grant, which is the largest award available in this phase, to deliver over 3,000 affordable homes.

Goodwin (+8.1%) and PPHE Hotel Group (+5.6%) also rallied, while Rathbones (-2.7%), Genuit Group (-2.7%) and Auction Technology Group (-2.5%) are among the FTSE 250’s weakest performers.

Elsewhere, AstraZeneca priced a €2.55 billion four-tranche Eurobond to support its long-term funding strategy, and easyJet confirmed Apollo’s Eagle Bidco has been granted an extension to 15 October to publish its scheme document for the recommended cash takeover.

On the macro front, oil prices slipped, with Brent crude down 0.7% at $89.89 and WTI off 0.8% at $84.31, even as tensions over Iran deepened.

Washington has unveiled sweeping new sanctions dubbed an “economic D-Day,” while Tehran vowed retaliation and reiterated threats over shipping through the Strait of Hormuz. Spot gold has eased 0.3% to $4,634 an ounce.