Log in
Log in
Or log in with
GoogleGoogle
Twitter Twitter
Facebook Facebook
Apple Apple     
Sign up
Or log in with
GoogleGoogle
Twitter Twitter
Facebook Facebook
Apple Apple     
News: Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexCryptocurrenciesCybersecurityPress Releases

Lloyds, Reckitt drive gains in Britain's FTSE 100

07/27/2022 | 05:08am EDT

(For a Reuters live blog on U.S., UK and European stock markets, click or type LIVE/ in a news window)

* Reckitt Benckiser at one-year highs

* Lloyds Group jumps on forecast lift

* Rio Tinto slips on halving dividend

* FTSE 100 up 0.6%, FTSE 250 adds 0.4%

July 27 (Reuters) - Britain's blue-chip index rose on Wednesday, as a jump in oil stocks and strong forecasts from heavyweights Reckitt Benckiser and Lloyds Banking Group overshadowed concerns over a slowing economy and soaring inflation.

The FTSE 100 index gained 0.6% and the domestically focussed midcap 250 edged 0.4% higher. Both the indexes looked set to end the month with strong gains.

Shares of Reckitt Benckiser climbed 2.8% to one-year highs as the maker of Dettol and Lysol cleaning products raised its full-year revenue forecast after steep price hikes helped it beat second-quarter sales expectations.

Lloyds Banking Group rose 4.1% after it raised its dividend and full-year profitability forecast as rising interest rates outpace modest growth in provisions for troubled loans.

"Expectations were a bit lower, so the headline figures for Llyods met expectations, helped by the fact that the rise in interest rates by the Bank of England is helping profit margins," said David Madden, market analyst at Equiti Capital.

Adding to gains on the commodity-heavy FTSE 100, oil majors Shell and BP rose more than 1% each as crude prices climbed on a report of lower inventories in the United States and cuts in Russian gas flows to Europe.

Meanwhile, better-than-expected results from U.S. tech giants Microsoft and Alphabet boosted Wall Street, with investors bracing for a big interest rate hike from the Federal Reserve later in the day.

"With so many moving parts to consider, we expect markets to remain volatile after the FOMC meeting," Mark Haefele, chief investment officer of UBS Global Wealth Management wrote in a note.

Worries about aggressive monetary policy tightening and the energy crisis in Europe have raised fears of a potential recession. However, resilient defensive sectors such as healthcare and consumer staples and a weakening pound have aided the FTSE 100 this year.

Data released earlier showed shops and supermarkets in Britain increased prices by 4.4% in the 12 months to July, the largest rise since these records began in 2005, reflecting a jump in food and transport costs.

UK-listed shares of Rio Tinto slipped 0.7% after the global miner reported a 29% drop in first-half profit and more than halved its dividend.

Wizz Air jumped 10.4% to lead gains on the mid-cap index after the low-cost airline said it expected to deliver a material operating profit as revenue and pricing momentum continued to improve.

(Reporting by Sruthi Shankar and Bansari Mayur Kamdar in Bengaluru; Editing by Vinay Dwivedi, Subhranshu Sahu and David Evans)


© Reuters 2022
Stocks mentioned in the article
ChangeLast1st jan.
ALPHABET INC. 2.97% 101.56 Delayed Quote.-31.90%
AVIVA PLC 2.84% 408.7 Delayed Quote.1.50%
BP PLC 2.67% 454.5 Delayed Quote.33.95%
FTSE 100 2.57% 7086.46 Delayed Quote.-6.44%
FTSE MID 250 INDEX 3.11% 17822.15 Delayed Quote.-26.39%
LLOYDS BANKING GROUP PLC 3.21% 43.12 Delayed Quote.-12.59%
LONDON BRENT OIL 3.16% 91.54 Delayed Quote.12.85%
MICROSOFT CORPORATION 3.32% 248.595 Delayed Quote.-30.75%
NATIONAL AUSTRALIA BANK LIMITED 3.97% 29.87 Delayed Quote.-0.38%
NATIONAL GRID PLC -0.21% 931.4 Delayed Quote.-11.93%
RECKITT BENCKISER GROUP PLC 0.67% 5966 Delayed Quote.-6.56%
RIO TINTO PLC 3.02% 5089 Delayed Quote.0.98%
SHELL PLC 1.67% 2338 Delayed Quote.41.79%
WIZZ AIR HOLDINGS PLC -0.20% 1523 Delayed Quote.-63.56%
WTI 3.51% 86.263 Delayed Quote.10.63%
Latest news "Economy & Forex"
03:16pJapan companies to study making ammonia in Alaska for greener energy
RE
03:14pExclusive-Italy moves to keep asset manager Anima in domestic hands -sources
RE
03:08pFed knows how to fight inflation, will seek to do so 'gently' -Daly
RE
03:06pTREASURIES-U.S. yields slip after labor market data, RBA surprise
RE
03:03pItaly favours keeping asset manager anima in domestic…
RE
03:03pState-owned poste italiane may raise stake in anima -…
RE
03:01pWall St rallies as data, RBA move lifts hope of Fed easing
RE
02:56pEU can learn from Spanish gas price limit, EU energy chief says
RE
02:51pHSBC taps JP Morgan for potential Canada exit -source
RE
02:49pAnalysis-Hopes of elusive Fed pivot drive markets higher once again
RE
Latest news "Economy & Forex"