- FTSE 100 up 0.1%, FTSE 250 down 0.5%
- Shell outlook lifts energy shares higher
- Lloyds says June house prices edged up
July 7 (Reuters) - The UK's FTSE 100 index inched up on Tuesday, as gains in energy stocks following Shell's upbeat second-quarter guidance offset weakness in precious metals miners.
The blue-chip FTSE 100 index rose 0.1% to 10655.88 points at close, while the midcap FTSE 250 fell 0.5%.
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Energy stocks rose 2.8%, with Shell up 3.4% after the oil major raised its second-quarter gas production forecast and flagged significantly stronger gas trading compared to the previous quarter, while peer BP added 1.4%.
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Providing further support to energy shares on Tuesday, oil prices rose more than 2% after reports of attacks on vessels near the Strait of Hormuz revived fears of disruptions to shipping through the critical energy transit route.
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However, a recent gradual decline of oil prices and increasing shipments through the strait have weighed on the energy-heavy index, with its 7.4% year-to-date gain lagging behind its broader European peer, the STOXX 600, which has risen 9.1%.
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Consumer-focused stocks were also among the top performers on the FTSE 100, with Diageo and Unilever rising 3.5% and 2.9% each.
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Conversely, precious metals miners fell 3.4%, leading sector-wise losses, despite gold prices steadying after declines earlier in the session.
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On the geopolitical front, talks to reach a final deal between Tehran and Washington will not start if U.S. threats continue, Iran's foreign minister said, following U.S. President Donald Trump's threat to "finish the job" if a deal is not made.
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NATO leaders began unveiling arms deals worth tens of billions of dollars in Turkey on Tuesday, driving home the message that they are heeding U.S. calls to spend more to defend Europe before a summit with Trump.
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Back home, British house prices rose 0.2% in June, their first monthly increase since February, though Lloyds said the outlook remained clouded by economic uncertainty.
Reporting by Tharuniyaa Lakshmi and Avinash P in Bengaluru; Editing by Vijay Kishore and Joe Bavier
Source: Reuters