FTSE 100 closes higher as banks track strong US earnings
FTSE 100 closes higher as banks track strong US earnings Updates to market close
July 14 (Reuters) - Britain's FTSE 100 closed higher on Tuesday, reversing early losses, as bank stocks led gains after strong U.S. lender earnings kicked off the reporting season and a softer-than-expected U.S. inflation reading boosted bets on interest rate cuts.
The FTSE 100 .FTSE ended up 0.3%, at 10,529.39, having earlier fallen as low as 10,422.98. The FTSE 250 midcap index .FTMC was about flat at 23,406.83.
Wall Street banks posted strong second-quarter earnings with a boost from fees for advising on deals and surging trading revenue, lifting their peers across the pond. In the UK, Barclays BARC.L and HSBC HSBA.L both gained 1.9%, while Lloyds LLOY.L added 1%, offering the top boost to the FTSE 100.
Glencore GLEN.L rose 3%, Rio Tinto RIO.L gained 3.3% and Anglo American AAL.L added 2.4% on strength in industrial metals prices. MET/L
Energy stocks provided further support after BP BP.L rose 2.2%, saying robust oil trading and higher refining margins would lift second-quarter earnings. Shell SHEL.L gained 1.2% as Brent crude held above $85, near four-week highs. O/R
Earlier, investor sentiment was dampened by growing bets on Bank of England rate hikes, higher oil prices amid Gulf tensions, and comments from a top Federal Reserve official that pointed to a near-term rate increase.
Meanwhile, U.S. consumer inflation slowed more than expected in June, tempering expectations for U.S. Federal Reserve policy tightening and further boosting U.S. stocks. .N
Healthcare stocks were the biggest drag. GSK GSK.L fell 1.7% and AstraZeneca AZN.L declined 2%.
Debenhams Group DEBS.L rose 3.1% after the online retailer said positive trading momentum continued through June and July.
(Reporting by Tharuniyaa Lakshmi and Medha Singh in Bengaluru; Editing by Leroy Leo and Aurora Ellis)