FTSE 100 movers: Defence firms rally; Fresnillo loses its shine

(Sharecast News) - London's FTSE 100 was up 0.9% at 8,799.57 in afternoon trade on Tuesday. British Airways and Iberia owner IAG flew to the top of the index.

Defence firm Melrose Industries and BAE Systems both gained amid expectations that NATO members will agree to raise defence spending at a summit next month.

Precious metals miner Fresnillo lost its shine as gold prices fell.

David Morrison, senior market analyst at Trade Nation, said: "Gold fell sharply overnight and dropped below $3,300 in early European trade. It has now given back most of its gains from Friday, when it rallied sharply on news that President Trump was hitting the EU with a fresh 50% tariff. Gold's pullback comes as the Trump administration postponed those tariffs for five weeks.

"Further downside pressure is coming from this morning's bounce in the US dollar. The Dollar Index had dropped steadily over the past fortnight. But it found a bid this morning, making gains across the board in early trade. Despite this, overall dollar weakness along with market uncertainty has kept gold on traders' radars as a preferred defensive asset."

FTSE 100 - Risers

International Consolidated Airlines Group SA (CDI) (IAG) 333.90p 4.41% Melrose Industries (MRO) 467.20p 3.50% BAE Systems (BA.) 1,892.00p 2.66% Intermediate Capital Group (ICG) 2,008.00p 2.55% Ashtead Group (AHT) 4,321.00p 2.47% JD Sports Fashion (JD.) 84.50p 2.33% St James's Place (STJ) 1,111.00p 2.21% Spirax Group (SPX) 5,835.00p 2.10% GSK (GSK) 1,453.50p 1.96% SEGRO (SGRO) 666.40p 1.83%

FTSE 100 - Fallers

Fresnillo (FRES) 1,110.00p -2.03% Rio Tinto (RIO) 4,498.50p -1.40% Centrica (CNA) 156.45p -1.36% Games Workshop Group (GAW) 15,240.00p -1.23% Airtel Africa (AAF) 178.10p -0.84% Pearson (PSON) 1,202.50p -0.78% Experian (EXPN) 3,765.00p -0.61% Rightmove (RMV) 757.40p -0.55% Beazley (BEZ) 921.00p -0.38% Reckitt Benckiser Group (RKT) 4,913.00p -0.32%