FTSE 100 rises as miners and banks gain

The FTSE 100 climbed 0.5% on Tuesday, supported by gains in banking and industrial mining shares, while the domestically focused FTSE 250 was up 0.1% at 0904 GMT. The blue-chip index has recorded gains in 11 of the past 12 months and was set to post a sixth consecutive quarterly rise.

The banking index rose 1.2% and is up more than 20% for the quarter. Lloyds added 1.8% and NatWest gained 2.4%. Industrial metal miners advanced 2.1% as metal prices firmed; Rio Tinto, Anglo American and Glencore each rose between about 1.7% and 2.8%.

Fresh economic data showed UK real gross domestic product increased 0.6% in the January-to-March quarter, matching expectations. The Office for National Statistics reported that all major sectors contributed to the expansion, with services the largest contributor. The ONS also said households were under financial strain before potential additional price pressures linked to the Middle East situation.

A Lloyds business survey indicated corporate confidence fell in June, with firms citing persistent cost pressures and ongoing global uncertainty. Data from the British Retail Consortium showed annual shop price inflation was unchanged in June, food inflation eased and shoppers benefited from seasonal summer discounts.

Housebuilding stocks were weaker after reports of a potential multi-billion-pound class action over alleged anti-competitive conduct. The home construction index fell 2.8%; Persimmon, Barratt, Redrow and Taylor Wimpey each declined roughly 2.4% to 3.3%.

Among individual companies, Sainsbury’s rose 2.1% after reporting first-quarter results and warned the Middle East situation could add upward pressure to food costs. Saga fell about 3% after publishing first-half figures and was the biggest decliner on the FTSE 250. The midcap index remained on track for a quarterly gain while facing a monthly decline, with internationally focused large-cap stocks outperforming several domestically focused midcaps.