FTSE 100 Climbs as Miners Lead and Bunzl Hits Record High

The UK's FTSE 100 index rose on Tuesday, led by gains in mining and energy stocks amid higher copper prices. Bunzl achieved a record high after forecasting a strong annual profit. Despite investors focusing on the Middle East and US inflation data, positive market sentiment prevailed.

The UK's benchmark FTSE 100 stock index surged on Tuesday, driven by gains in mining and energy shares as copper prices reached a six-week peak. Business supplies distributor Bunzl hit a record high following a strong annual profit forecast.

By 0715 GMT, the blue-chip FTSE 100 index had climbed 0.4%, achieving a one-week high. Meanwhile, the mid-cap FTSE 250 index remained largely unchanged, as the UK equity market reopened after a bank holiday on Monday.

Both indexes recorded their second consecutive weekly rise on Friday, buoyed by global market optimism following U.S. Federal Reserve Chair Jerome Powell's indication of potential interest rate cuts at the Jackson Hole symposium. Metal miners benefited from elevated copper prices, while energy stocks continued their ascent despite a slight pause in oil price gains.

Bunzl soared 11%, leading the FTSE 100, after raising its annual profit forecast, setting a new high for the general industrials index. Conversely, Associated British Foods fell 3%, becoming the worst-performing stock on the benchmark index, following a downgrade from Deutsche Bank to 'Sell' from 'Hold'.

Investors remained cautious, monitoring Middle East tensions and anticipating a critical U.S. inflation report. Additionally, data revealed an annual decline in British shop prices for the first time since October 2021, aligning with the Bank of England's recent interest rate cut from a 16-year high earlier this month. Investors expect at least one more quarter-point cut by year-end, according to LSEG data.

(With inputs from agencies.)