UKX FTSE 100 Index

By Barbara Kollmeyer, MarketWatch

The U.K.'s main stock benchmark was headed for its best close in more than a week on Tuesday, inspired by gains for Asia and the U.S., with commodity-related stocks taking the lead.

How markets are performing

The FTSE 100 rose 1% to 7,743.46, after closing up by less than 0.1% to end at 7,663.78 on Monday. The index could see its highest finish since July 31, when it ended the session up 0.6%.

Stocks may have seen some support from the pound , which erased earlier gains to trade at $1.2941, not far off where it closed late Monday in New York. Sterling was bruised Monday after Liam Fox, the U.K.'s international trade secretary, said in a weekend interview (https://www.thetimes.co.uk/edition/news/liam-fox-says-there-is-a-6040-chance-of-no-dealbrexit-lpsgm2gdf) that there's a 60% chance the country will crash out of the European Union without a deal with the trade bloc.

A softer pound can boost the FTSE 100, as the index's multinational companies generate most of their sales in other currencies.

What's moving markets

U.K. stocks and other assets perceived as risky were getting a boost after the S&P 500 brushed off trade jitters Monday (http://www.marketwatch.com/story/us-stock-futures-wobble-as-trade-worries-rumble-on-2018-08-06) to close just shy of a record close reached in late January. U.S. stocks were off to a higher start on Tuesday (http://www.marketwatch.com/story/sp-500-poised-to-rise-near-records-as-wall-street-joins-global-market-climb-2018-08-07), buoyed by London and Europe gains and a rebound for Chinese stocks (http://www.marketwatch.com/story/asian-markets-advance-as-stocks-in-china-bounce-back-2018-08-06).

Given the heavy representation of commodity stocks in London's benchmark, higher materials prices also gave the U.K. index a boost, with copper and platinum prices climbing. Oil prices added to Monday's gains, inspired in part by the reimposition of U.S. sanctions on Iran, something that could block crude exports from the country.

Don't miss:A top London startup's CEO flags the biggest Brexit threat to his industry (http://www.marketwatch.com/story/a-top-london-startups-ceo-flags-the-biggest-brexit-threat-to-his-industry-2018-08-06)

Global trade tensions hovered in the backdrop as China kept up its war of words with the U.S., with a late Monday editorial in China's People's Daily (http://en.people.cn/n3/2018/0806/c90000-9488193.html) saying the country won't give in to "trade blackmail." China threatened (http://www.marketwatch.com/story/china-threatens-new-tariffs-on-60-billion-of-us-products-2018-08-03) to place tariffs on $60 billion of American goods last week if the White House goes ahead with its plans to impose new levies on Chinese products.

What are strategists saying?

"With copper up 0.7% the likes of Rio Tinto and Anglo Americanand 2%, " said Connor Campbell, financial analyst at Spreadex, in a note to clients.

"BP and Shell jumped 0.8% and 0.5%, respectively, as Brent crude crossed $74 per barrel following the resumption of the USA's sanctions on Iran," he added.

Stocks in focus

Among heavily weighted commodity shares, miners took the lead, with Rio Tinto PLC (RIO.LN) (RIO.LN) up 2.4% and BHP Billiton Ltd. (BLT.LN) (BHP.AU) rising over 3%. Among major oil companies, BP PLC(BP.LN) (BP.LN) rose 1.5% and Royal Dutch Shell PLC (RDSA.LN) (RDSA.LN) up over 1% each.

Shares of investment company Standard Life Aberdeen PLC(SLA.LN) rose 2.6% after posting results and saying it would launch a share buyback plan worth 1.75 billion pounds (http://www.marketwatch.com/story/standard-life-aberdeen-operating-profit-falls-8-2018-08-07) ($2.27 billion) in the next few days.

(END) Dow Jones Newswires

August 07, 2018 10:00 ET (14:00 GMT)

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