The FTSE 100 index saw a rise on Tuesday, amidst a backdrop of global stock markets experiencing a drop following the announcement of Israel’s ground offensive in southern Lebanon. London’s blue-chip index climbed by 39.7 points, or 0.48%, ending the day at 8276.65.
The increase in the FTSE was notably bolstered by a strong performance from companies such as defence giant BAE Systems, as well as energy firms BP and Shell. These energy companies benefited from a surge in oil prices caused by the Israeli military operation.
Israel’s military actions prompted warnings for residents to evacuate nearly twenty Lebanese border communities in response to alleged limited ground operations against Hezbollah. As trading drew to a close in Europe, Germany’s DAX index fell by 0.65% and France’s CAC 40 closed down by 0.80%.
By the time markets closed in Europe, in New York the S&P 500 was trading down by 0.86% while the Dow Jones showed a decrease of 0.27%. On the currency front, the pound dropped by 0.71% against the dollar to 1.328 and 0.09% against the euro at 1.2001.
In company updates, Greggs reported a sales increase of over 10% in recent weeks as the bakery expanded in the UK and launched an autumn menu inspired by pumpkin spice. Despite this positive news, shares dipped by 5.83% on reports of a slowdown in trading over the summer, partly attributed to the riots across the UK.
Brent crude oil futures saw a rise of 3.556% to 74.250 US dollars, as the London markets wrapped up their trading day. Among the biggest gainers on the FTSE 100 were BAE Systems, BP, WPP, Shell, and Rightmove. Conversely, prominent fallers included IAG, easyJet, Intermediate Capital, JD Sports, and 3i Group.