The FTSE 100 rose 0.82% on Tuesday as gains in global technology stocks coincided with continued attention on the conflict involving Iran and its impact on energy supplies.
Germany’s DAX gained 0.76%, while France’s CAC 40 was 0.48% higher. Sterling edged up 0.04% against the US dollar to $1.3224.
The gains followed a technology-led advance on Wall Street towards record levels, while investors continued to assess developments in the Middle East and energy flows through the Strait of Hormuz.
Jefferies Expects Central Banks to Hold Rates in October
Jefferies global economist Mohit Kumar said the firm expects both the US Federal Reserve and European Central Bank to leave interest rates unchanged in October, with the next increases expected in December and one further increase anticipated from each central bank.
Kumar said recent commentary from central bank officials, including the Federal Reserve’s Philip Jefferson and Beth Hammack and the ECB’s Philip Lane, had “moderated” regarding the need for further increases.
Jefferies said it remains positioned in equities with a preference for technology, citing earnings, capital expenditure and liquidity, while noting that market breadth remains narrow.
In government bonds, Kumar said investors were focusing on France and the UK because of their fiscal positions. French spreads had narrowed to 136 basis points after reaching more than 150 basis points intraday. Jefferies said it was avoiding French government debt.
Iran Conflict Keeps Energy Supply in Focus
Iranian President Masoud Pezeshkian nominated Mehrdad Akhlaghi Ketabachi, who has been involved in the country’s missile programme and is subject to EU and US sanctions, as defence minister. The appointment remains subject to a parliamentary confidence vote.
An acting minister has held the position since predecessor Aziz Nasirzadeh was killed in US-Israeli attacks earlier in the conflict.
Iranian army spokesperson Brigadier General Mohammad Akraminia said the country holds a stockpile of new military equipment. He said: “New defensive and offensive equipment will be introduced at the appropriate time.”
According to the supplied material, Iranian oil exports have fallen to zero because of a US blockade.
UN Secretary-General Antonio Guterres arrived in Islamabad for talks that include Pakistan’s mediation between Iran and the US. Washington and nine allies in the Americas also issued a statement condemning what they described as Iran’s “terrorist actions” in the region.
Data from Kpler cited by the Wall Street Journal indicated crude flows through the Strait of Hormuz were running at 76% of pre-war levels, while the recovery in refined fuel flows could extend into 2027.
US President Donald Trump said US bombers had been moved from RAF Fairford following unspecified “threats”.
Elsewhere, Yemen’s government said it had retaken Mocha from the Houthis, while Turkey and Pakistan agreed to deploy forces to defend Saudi Arabia. The battlefield claims cited in the supplied material have not been independently verified.
Britain was also reported to have threatened the expulsion of 27 Israeli diplomats if Israel closes its Jerusalem consulate by 8 October.
Oil Falls While Gold Prices Are Mixed
Brent crude futures declined 0.73% to $99.59 a barrel, while West Texas Intermediate crude fell 1.2% to $88.40.
Gold futures increased 0.2% to $4,164.65 an ounce, while spot gold declined 0.06% to $4,137.96.
Informa Agrees £2.24 Billion Clarion Acquisition
In UK corporate news, Informa (LSE:INF) agreed to acquire B2B events company Clarion for an enterprise value of £2.24 billion.
The acquisition will be funded through committed financing and an equity raise of approximately £940 million.
Informa has also launched a formal review of separating its Taylor & Francis academic publishing business and expects to report the outcome alongside its full-year results in March 2027.
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