1. Britain’s FTSE ends higher as energy stocks rebound

Britain’s FTSE ends higher as energy stocks rebound

Britain's top share index closed higher on Tuesday, with broadcaster Sky climbing after Deutsche Bank upgraded the shares and energy stocks bouncing back as crude oil rose.

By: | Published: July 14, 2015 10:45 PM

Britain’s top share index closed higher on Tuesday, with broadcaster Sky climbing after Deutsche Bank upgraded the shares and energy stocks bouncing back as crude oil rose.

The FTSE 100 index closed 0.2 percent higher at 6,753.75 points, extending a 1.0 percent rise on Monday when markets welcomed a Greek debt deal.

Shares in Sky rose 4.1 percent, the biggest gain in the FTSE 100 index, after Deutsche Bank upgraded the stock to “buy” from “hold”.

The UK Oil and Gas index rose 0.6 percent after falling nearly 1 percent earlier in the session, tracking moves in oil prices. Benchmark Brent crude futures were up nearly 1 percent, after falling sharply when Iran and six global powers reached a landmark nuclear deal.

Shares in Royal Dutch Shell rose 1.1 percent. BP steadied after falling earlier.

“The removal of sanctions in Iran could help BP and Shell ramp up operations within the country. Since oil prices rebounded as well, there was little reason for the shares to trade lower,” said Jasper Lawler, an analyst at CMC Markets.

However, housebuilders lost ground after Bank of England Governor Mark Carney said the time was getting closer for the first increase in interest rates since the financial crisis.

Speaking to British lawmakers for the first time since May’s national election, Carney said households should start to prepare for higher borrowing costs, though the central bank would only raise rates slowly.

“Comments from the Bank of England Governor regarding the timing and increasing potential for a hike in UK interest rates have hit the housebuilders. Clearly, any increase in rates would be likely to dampen activity for the sector,” Keith Bowman, equity analyst at Hargreaves Lansdown, said.

Shares in Taylor Wimpey, Persimmon and Barratt Developments fell 1.1 to 1.5 percent. Mid-cap companies Bellway, Bovis Homes and Berkeley dropped 2.5 to 3.5 percent.

Johnston Press, publisher of The Scotsman and The Yorkshire Post, slumped 20 percent after a profit warning. British newspapers have suffered in recent years as readers and advertisers move online.

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