Key facts
- The FTSE 100 rose 39 points to 10,695 in mid-afternoon trade.
- BP shares climbed after its trading update showed net debt falling sharply.
- Bellway reported underlying operating profits that beat expectations.
- Brent crude oil prices were elevated, trading around $105 a barrel.
- Asian markets experienced a sharp sell-off in semiconductor stocks.
- The IMF upgraded its 2026 growth forecast for the UK economy to 1.3%.
The FTSE 100 index saw a strong start to trading on Tuesday, opening 104 points higher and later trading up 39 points at 10,695 in mid-afternoon, despite a significant sell-off in Asian tech stocks. The gains were supported by buoyant shares in BP and Bellway.
BP's stock climbed following a trading update that revealed a sharp fall in net debt to between £13.5 billion and £14.5 billion. Bellway also saw its shares rise after reporting underlying operating profits that exceeded expectations, although the housebuilder revised its completion target for the year to between 9,000 and 9,400 homes.
Globally, Asian markets were hit by a rout in semiconductor stocks, triggered by China's CXMT claiming advances in memory chip design and Broadcom chief Hock Tan's comparison of AI investors to casino gamblers. South Korea's Kospi fell around 6%, with SK Hynix down 10% and Samsung Electronics off 7%. BlackRock downgraded US equities to 'neutral' from 'overweight' due to AI investment volatility.
Wall Street presented mixed signals, with the Dow Jones rising 0.7% driven by UnitedHealth's profit outlook increase, while the S&P 500 slipped 0.1% and the Nasdaq fell 0.4%. Goldman Sachs reported a 29% surge in third-quarter profits, partially offsetting an earlier miss from JPMorgan.
Oil prices remained elevated, with Brent crude trading around $105 a barrel. US inflation data later in the week is anticipated as the next key market test. Bitcoin was trading just over $83,500, up almost 1% but struggling for momentum amid rising US Treasury yields and a firmer dollar.