British shares climbed on Tuesday as market participants absorbed a mixed patch of domestic economic data and heightened geopolitical attention with heads of state gathering in Ankara.
The FTSE 100 was up 0.25%, reversing part of Monday’s 0.3% drop, as of 03:15 ET (07:15 GMT). Across the continent, Germany’s DAX fell 0.22% while France’s CAC 40 rose 0.58%. The pound moved slightly weaker, easing 0.07% to 1.3379.
Housing numbers nudge higher
UK house prices showed a modest rebound in June, marking the first monthly increase in four months according to the Lloyds House Price Index. The index recorded a 0.2% monthly rise, lifting the average property value to £299,330 from £298,812 in May. On an annual basis, growth in prices inched up to 0.6% from 0.5%.
Regional differences were notable. Northern Ireland reported the strongest annual gain at 7.4%, while London’s annual price change was negative, falling 1.1% year-on-year to an average of £534,831.
Commenting on the data, Amanda Bryden, Head of Mortgages at Lloyds, said: "Mortgage rates have eased from their recent highs, offering some encouragement to those considering a move." She added: "The outlook for house prices will depend largely on inflation continuing to ease and household confidence gradually improving."
Geopolitical flashpoints remain in focus
Heightened geopolitical tension also shaped market sentiment. Britain’s maritime trade operations centre reported that a tanker caught fire early Tuesday in the Strait of Hormuz after being struck by a projectile. The centre described the incident as the latest attack on commercial shipping through the waterway since the start of the U.S.-Iran war.
Talks between Washington and Tehran remained on hold amid a multi-day funeral for the slain Supreme Leader Ali Khamenei. His body arrived in Qom on Monday ahead of a burial scheduled in Mashhad on Thursday, and diplomatic engagement was paused during the ceremonies.
Summit dynamics in Ankara
U.S. President Donald Trump, speaking at the White House on Monday, asserted that the United States would prevail in the conflict "one way or the other," and warned that Washington could destroy Iran’s power-generating plants in the "small part of an afternoon." He left Washington Monday evening en route to Ankara, where alliance leaders were meeting on Tuesday and Wednesday.
The summit agenda centres on turning last year’s pledge to increase defence spending from 2% to 3.5% of GDP by 2035 into actionable plans. The leaders opened the summit alongside a defence industry fair intended to stimulate large procurement contracts. White House officials indicated Mr. Trump would hold bilateral meetings on the sidelines with the presidents of Ukraine and Syria.
Commodities and market movers
Energy markets moved higher on the session. Brent crude rose 1.28% to $72.91 a barrel, while U.S. West Texas Intermediate gained 1.20% to $69.37.
Precious metals came under pressure. Gold futures fell 0.63% to $4,141.31 an ounce, and spot gold traded at $4,129.42, down 0.84%.
UK corporate round-up
Shell adjusted its guidance for second-quarter integrated gas production upward, but the company cautioned that output is expected to be sharply lower than in the first quarter following the shutdown of its Pearl GTL facility in Qatar after the Ras Laffan attack.
Separately, the Financial Times reported that HSBC is retreating from riskier private credit lending and will redirect focus toward lower-risk funds amid concerns about underwriting standards.
Markets are balancing encouraging domestic housing signals against ongoing geopolitical uncertainty and sector-specific developments in energy and banking. Traders and investors will be watching how defence spending commitments and crude market dynamics evolve over the coming days as the NATO summit progresses.