News: Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexCryptocurrenciesCybersecurityPress Releases

UK equities record best week since mid-March

05/27/2022 | 04:57am EDT

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

* Miners rise as metal prices gain ground

* Deliveroo down on JPMorgan downgrade

* Banks, retailers among top weekly performers

* FTSE 100 up 0.3%, FTSE 250 adds 0.6%

May 27 (Reuters) - The FTSE 100 inched higher on Friday, recording its best weekly showing since mid-March, although oil and gas stocks came under renewed pressure after the UK government's windfall tax plan this week.

The FTSE 100 rose 0.3%, with most European markets ending the week higher, taking heart from a Wall Street rally after the Federal Reserve minutes suggested it could pause its rapid rate hikes later this year.

Banks gained 1.1%, while UK-listed global miners such as Glencore, Rio Tinto and Antofagasta rose about 1.5% each as copper and iron ore prices were boosted by a weaker dollar.

However, oil majors such as BP and Shell slipped about 2% after Britain announced a 25% windfall tax on oil and gas producers' profits on Thursday.

Power generators such as SSE, Centrica and Drax dropped between 1.6% and 4.2%, while Harbour Energy , the biggest UK North Sea oil and gas producer, dropped 10.8% and EnQuest fell 10.4%.

"The big shakedown will be how investors in the UK's oil and gas majors like BP and Shell will feel about windfall taxes," said Sophie Lund-Yates, lead equity analyst at Hargreaves Lansdown.

"While not a long-term problem for profits, the incentivisation to invest their profits could see dividends trimmed."

The domestically oriented FTSE 250 midcap index gained 0.6%, with transport group FirstGroup Plc extending gains for a second day after attracting buyout interest from an investment firm.

Both the FTSE 100 and FTSE 250 indexes posted their biggest weekly gains in over two months, with banks and retailers providing the biggest boost.

Retailers have gained this week after the government's new 15 billion pound ($19 billion) package of support for households spurred hopes of more spending.

Food delivery company Deliveroo slipped 1.4% after JPMorgan downgraded the stock to "neutral".

(Reporting by Sruthi Shankar and Amal S in Bengaluru; Editing by Subhranshu Sahu and Jon Boyle)

© Reuters 2022
Stocks mentioned in the article
ChangeLast1st jan.
ANTOFAGASTA PLC -0.13% 1188.5 Delayed Quote.-11.17%
AVIVA PLC 0.78% 413.3 Delayed Quote.-24.06%
BP PLC 1.33% 422 Delayed Quote.25.96%
CENTRICA PLC 0.17% 83.14 Delayed Quote.16.08%
DELIVEROO PLC -2.60% 93.1853 Delayed Quote.-54.87%
DRAX GROUP PLC 0.39% 770.5 Delayed Quote.26.94%
ENQUEST PLC -0.56% 27.2459 Delayed Quote.46.37%
FIRSTGROUP PLC -0.37% 135 Delayed Quote.32.58%
FTSE 100 0.03% 7486.35 Delayed Quote.0.75%
FTSE MID 250 INDEX -0.51% 20019.48 Delayed Quote.-14.60%
GLENCORE PLC -0.87% 461.95 Delayed Quote.24.11%
HARBOUR ENERGY PLC 0.53% 361.6 Delayed Quote.1.61%
LONDON BRENT OIL 1.61% 97.84 Delayed Quote.21.13%
NATIONAL GRID PLC 0.05% 1135.62 Delayed Quote.7.10%
RIO TINTO PLC -0.39% 4942.5 Delayed Quote.1.34%
S&P 500 -0.12% 4140.06 Real-time Quote.-13.03%
SHELL PLC 1.02% 2183.29 Delayed Quote.33.28%
SSE PLC -0.28% 1782.63 Delayed Quote.8.40%
WTI 1.43% 91.755 Delayed Quote.17.49%
Latest news "Economy & Forex"
07:15aProblems remain with Kaliningrad transit despite EU deal - Russia
07:14aEmerson Electric profit jumps 47% on strength in automation unit
07:09aUK's Liz Truss still favours tax cuts over direct support on energy bills
07:06aBRAZIL CENTRAL BANK : 12-month inflation projection for q1 2024 i…
07:04aBRAZIL CENTRAL BANK : Measures to sustain aggregate demand, which…
07:04aDevon Energy to buy Eagle Ford basin operator Validus for $1.8 billion
07:04aDollar turns slightly defensive, inflation data next key test
07:03aBRAZIL CENTRAL BANK : Rise in inflation expectations and medium-t…
07:01aBRAZIL CENTRAL BANK : Will remain vigilant and assess whether the…
07:01aEmerson quarterly profit rises on strength in automation unit
Latest news "Economy & Forex"