Market Overview

The FTSE 100 closed up 0.2% on Tuesday, recovering from earlier losses, while Germany’s DAX rose 0.1% and France’s CAC 40 was flat. Sterling extended gains against the dollar, trading at $1.3381, up 0.3%.

US Inflation Data

U.S. consumer price index for June fell 0.4% month‑on‑month and rose 3.5% year‑on‑year, according to the Bureau of Labor Statistics. Core CPI, which excludes food and energy, was unchanged from the previous month and was 2.6% higher than a year earlier.

Oil Market Reaction

Brent crude reached a fresh one‑month high above $86 per barrel, later quoted at $86.92, up 4.4% on the day. WTI crude was at $80.69, up 3.3%. The rally followed President Donald Trump’s announcement that the United States was reinstating its blockade of Iranian ports and would impose a 20% security fee on cargo transiting the Strait of Hormuz. Hapag‑Lloyd described the fee as “fundamentally wrong,” arguing that tolls are justified only where major infrastructure investment is involved. Oman’s Foreign Ministry said it was working with all parties to restore free navigation. Unclaimed strikes reportedly hit Bushehr, Iran’s civilian nuclear plant city, according to IRNA; the United States has not claimed responsibility. Trump’s formal notification to Congress, dated 10 July, indicated that hostilities with Iran resumed on 7 July after a cease‑fire collapsed in April.

UK Domestic Data

Retail sales growth in the United Kingdom slowed sharply in June, with total sales up 1.9% year‑on‑year, down from 3.7% in May and below the 3.1% pace recorded in June 2025. In‑store non‑food sales fell 1.1%, compared with a 0.4% decline in May, while online non‑food sales rose 5.1%, easing from an 11% surge in May. The data were supplied by the British Retail Consortium and KPMG.

Commodity Prices

Gold futures increased 1.81% to $4,078.20 per ounce, and spot gold rose 1.82% to $4,073.88 per ounce.

Company Updates

  • Robert Walters reported first‑half net fee income fell 3.9%, with second‑quarter net fees down 4.5%.
  • Ashmore exceeded net inflow expectations as strong demand for emerging‑market assets drove higher client inflows.
  • Watches of Switzerland noted continued strong U.S. demand into the new financial year and signs of recovery in the UK market.
  • Debenhams said trading momentum persisted in June and July, with its marketplace model supporting gross merchandise value growth and margin improvement.
  • Spire Healthcare appointed Debbie White as chair, succeeding Ian Cheshire, as takeover discussions with Toscafund continue.