The FTSE 100 advanced 0.30% on Tuesday, extending gains from the prior session as European equities displayed divergent trends. Germany’s DAX rose 0.7%, while France’s CAC 40 fell 0.2%. Sterling strengthened 0.1% to $1.3638.
Melrose Industries led FTSE 100 gains, surging 10.4% to 510.20p, outpacing peers including IAG, Rightmove, and Rolls-Royce. The previous session saw the S&P 500 decline 0.3%, the Eurostoxx slip 0.2%, and oil prices fall 2.4%.
Bitcoin held near three-month highs, climbing 0.86% to $79,134 after reaching $81,237.94 during Asian trading hours. The cryptocurrency has gained 28% in August. Gold futures remained flat at $4,698.51, while spot gold eased 0.19% to $4,642.85. Brent crude dropped 3.1% to $87.74 per barrel, and WTI crude fell 3.5% to $82.02.
Analysts at Jefferies highlighted potential Treasury General Account (TGA) withdrawals to fund bond buybacks, estimating the move could add roughly $14 billion against $148 billion in supply through early November. The Treasury’s $1 trillion General Account remains a focal point for market liquidity dynamics. Nvidia is scheduled to report earnings on Wednesday, with a speech by Federal Reserve Governor Christopher J. Waller on Friday.
Geopolitical tensions in the Strait of Hormuz persisted as an oil tanker was struck by an unidentified projectile overnight, disabling the vessel without casualties, according to the UK’s maritime agency. Iran’s national security chief, Mohsen Rezaei, reiterated calls for the U.S. to return to a June ceasefire memorandum, while the country’s economy minister outlined a two-year plan to withstand economic pressure. Pakistan and Iran reviewed maps of the Strait of Hormuz in a meeting in Tehran, with Pakistan’s interior minister citing "significant progress."
In corporate developments, GKN, a unit of Melrose Industries, targeted a September 28 restart of full operations at its Garden Grove facility and launched a $100 million claims program. The company faces no criminal charges. easyJet and Apollo extended their scheme document deadline to October 15 amid ongoing regulator discussions.
