FTSE 100 Mixed As Oil Climbs On Middle East Tensions

(RTTNews) - U.K. stocks turned in a mixed performance Tuesday morning on concerns about inflation as oil prices climbed higher amid lingering concerns about the situation in the Middle East. Also, with the crucial U.S. inflation data due later in the week, investors appeared reluctant to make significant moves.

U.S. President Donald Trump said he has instructed American representatives to firmly include compensation demands from Iran in any future negotiations, complicating efforts to reopen the Strait of Hormuz, the crucial waterway.

Brent crude futures climbed above $90 a barrel, gaining nearly 3%.

The benchmark FTSE 100 was down 2.75 points or 0.03% at 10,859.75 about half an hour before noon. The index, which advanced to 10,875.98 earlier, dropped to a low of 10,824.81 subsequently.

Energy stocks BP and Shell moved up 1.85% and 1.6%, respectively, riding on higher oil prices.

IG Group Holdings climbed 1.5%, while Lion Finance, Scottish Group, BT Group, AutoTrader Group and Airtel Africa posted moderate gains.

Spirax Group shed more than 10% before recovering some lost ground. Despite coming off lows, the stock was still down 6% a little while ago. The thermal energy and fluid technology firm reiterated its guidance for mid-single-digit organic revenue growth and margin expansion for the full year after posting improved first-half results.

Legal & General drifted down 4.2% and M&G dropped 3.4%, while Standard Life and Prudential lost 2.6% and 2.3%, respectively.

Tesco, JD Sports Fashion, Aviva, Sainsbury (J), IMI, Coca-Cola HBC, Hiscoxx, Metlen Energy & Metals, 3i Group and Halma dropped down by 1%-1.5%.

Holiday Inn owner InterContinental Hotels Group slid 1.4% after room revenue growth, a key measure of performance, slowed in the second quarter.

International Workplace Group shares tumbled 4% on weak results. The British office-space provider reported a loss before tax of $20 million, compared with a profit before tax of $12 million in the prior year.

In economic news, data released by British Retail Consortium showed UK retail sales rose by 1% year-on-year on a like-for-like basis in July, falling short of market expectations for a 1.5% gain and slowing from a 1.7% increase in the previous month. The latest figure also marked the softest growth since February.