Tuesday Morning Markets: FTSE Rises as Earnings Flood In, Travis Perkins Surges

London shares opened higher on Tuesday, with the FTSE 100 up 0.4% and the FTSE 250 gaining 0.5%, tracking gains across Europe.

The DAX has added 0.7%, the CAC 40 has risen 0.3% and the Stoxx 50 has climbed 0.6%.

Brent crude is up 1.4%, with Donald Trump claiming a deal was close over the Strait of Hormuz, ahead of further Iran negotiations. However, Iran has denied that any talks are taking place.

It’s another bumper day for corporate results…

HSBC posted a 23% jump in interim pre-tax profit to $19.5bn and unveiled a $1bn buyback, though shares slipped 0.7% on cautious guidance.

BP also reported second-quarter results as it accelerates its portfolio shake-up under new leadership.

On the risers board, defence names led the FTSE 100: BAE Systems (+2.85%) and Babcock International (+2.92%) extended recent strength amid ongoing geopolitical uncertainty, while Antofagasta (+3.02%) rose on firmer copper prices.

The biggest FTSE 100 faller was Smith & Nephew, currently down 6.14% after cutting its full-year revenue growth guidance from around 6% to around 4% despite strong H1 profit growth.

Coca-Cola Europacific Partners dropped 4.40% even after reaffirming full-year guidance, as investors focused on Middle East-related demand uncertainty. Pearson slipped 2.04%.

In the FTSE 250, Travis Perkins rocketed 15.45% after half-year results showed early progress in its General Merchant turnaround, a strengthened balance sheet with net cash, and steady profits despite a 1.8% revenue decline.

Volution Group rose 5.04% on news of its acquisition of Germany’s GetAir. Hunting gained 4.13%.

On the downside, Metro Bank fell 10.13% despite posting its strongest half-year profit on record, with underlying pre-tax profit up 34% to £61m — likely profit-taking after a strong run.

A.G. Barr dropped 6.05% after flagging a £10m revenue hit from supply chain issues, even as it maintained full-year profit guidance. Hollywood Bowl has eased 2.78%.