UKX FTSE 100 Index

By Carla Mozee, MarketWatch

U.K. stocks rose on Tuesday, as an advance in oil shares and persistent weakness in the pound helped push the blue-chips market toward a sixth consecutive advance.

How markets are performing

The FTSE 100 index rose 0.3% to 7,421.26, a move that puts the index on track to close above the 7,400 level for the first time since early February. Oil and gas and tech shares fared the best but the consumer services sector was among decliners. On Monday (http://www.marketwatch.com/story/ftse-100-lingers-around-11-week-high-even-as-miners-rally-2018-04-23), the index rose 0.4% and closed at its highest since Feb. 2, according to FactSet data.

The pound bought $1.3940, recovering from an intraday low of $1.3918, and little changed from $1.3939 late Monday in New York. That means sterling is still trading around its lowest level since mid-March. In the fixed-income market, the yield on the U.K.'s 10-year gilt was up less than 1 basis points at 1.52%, according to Tradeweb.

Read: Stock investors are freaking out about bonds ending a bull run--but should they be? (http://www.marketwatch.com/story/the-stock-market-is-freaking-out-up-about-the-bond-marketbut-should-it-be-2018-04-21)

Also:Here's why the pound got whipped this week -- and why it may bounce back to $1.44 (http://www.marketwatch.com/story/heres-why-the-pound-got-whipped-this-week-and-why-it-may-bounce-back-to-144-2018-04-20)

What's driving the market

Oil and multinational companies were among the best performers, riding on the back of higher oil prices and a low value of the pound, respectively. The moves came as Brent crude prices traded above $75 a barrel (http://www.marketwatch.com/story/brent-oil-breaks-above-75-on-fears-iran-sanctions-are-looming-2018-04-24), the highest since 2014, as tensions between Saudi Arabia and Yemen heated up. Also, speculation that U.S. sanctions on Iran will be put back in place in May helped push up Brent and oil prices . A crude-supply update from the API industry group is due later Tuesday.

The pound was also at play as it struggled for a sixth straight day against the dollar, although its come off session lows. A weaker pound can help bolster shares of multinational companies that make the bulk of their earnings and revenue in other currencies. Sterling suffered after members in the House of Lords on Monday voted for an amendment the U.K.'s Brexit bill to keep the EU's human rights charter a part of British law -- seen as a defeat for the U.K. government.

What are strategists saying?

"It is this move higher in crude oil prices, along with the rise in demand, that is helping fuel the recent rise in yields as well as the positive tone for equity markets, however if it continues too far we could start to see it act as a drag on equity markets, if prices along with yields start to move even higher," said Michael Hewson, chief market analyst at CMC Markets, in a note.

Share movers

Shire PLC shares (SHPG) (SHPG) jumped 6% following a Bloomberg report (https://www.bloomberg.com/news/articles/2018-04-24/takeda-is-said-to-near-preliminary-agreement-to-acquire-shire)that Japanese drug maker Takeda Pharmaceutical Co. (4502.TO) is getting closer to a deal to acquire its Dublin-based rival after raising its roughly $60 billion bid.

Shares of oil producers BP PLC (BP.LN) (BP.LN) tacked on 1.4% and Royal Dutch Shell PLC (RDSA.LN) (RDSA.LN) rose 0.6% as oil prices moved up.

Among multinationals, shares of consumer products heavyweight Unilever PLC (ULVR.LN)(ULVR.LN) gained 1.4%, and defense contractor BAE Systems PLC (BA.LN) picked up 2.3%. BAE brings in 42% of its revenue from the U.S. market, according to FactSet data.

London Stock Exchange Group PLC shares (LSE.LN) rose 0.6% as the exchange operator said first-quarter gross profit rose 13% (http://www.marketwatch.com/story/london-stock-exchange-profit-rises-2018-04-24) after generating double-digit income growth for all its core business units.

William Hill PLC shares (WMH.LN) tumbled 13% on the mid-cap FTSE 250 (WMH.LN) after a report by The Times newspaper (https://www.thetimes.co.uk/article/hammond-accepts-2-limit-for-addictive-gambling-machines-wvqhcln95) that the U.K. government is set to reduce the maximum bet to GBP2 for fixed odds betting terminals.

(END) Dow Jones Newswires

April 24, 2018 06:41 ET (10:41 GMT)

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