UK markets close in 2 hours 15 minutes
  • FTSE 100

    7,470.56
    -36.55 (-0.49%)
     
  • FTSE 250

    20,283.73
    -14.27 (-0.07%)
     
  • AIM

    927.53
    +7.75 (+0.84%)
     
  • GBP/EUR

    1.1814
    -0.0043 (-0.36%)
     
  • GBP/USD

    1.2234
    +0.0016 (+0.13%)
     
  • BTC-GBP

    20,282.23
    +592.22 (+3.01%)
     
  • CMC Crypto 200

    585.11
    +53.89 (+10.14%)
     
  • S&P 500

    4,210.24
    +87.77 (+2.13%)
     
  • DOW

    33,309.51
    +535.11 (+1.63%)
     
  • CRUDE OIL

    93.55
    +1.62 (+1.76%)
     
  • GOLD FUTURES

    1,811.50
    -2.20 (-0.12%)
     
  • NIKKEI 225

    27,819.33
    -180.63 (-0.65%)
     
  • HANG SENG

    20,082.43
    +471.59 (+2.40%)
     
  • DAX

    13,733.56
    +32.63 (+0.24%)
     
  • CAC 40

    6,523.15
    -0.29 (-0.00%)
     

UK's FTSE 100 edges up as consumer staples offset commodity slump

  • Oops!
    Something went wrong.
    Please try again later.
·2-min read
FILE PHOTO: Pedestrians leave and enter the London Stock Exchange in London
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

By Bansari Mayur Kamdar and Sruthi Shankar

(Reuters) -UK's top share index edged up on Tuesday, as gains in defensive sectors outweighed mining and energy stocks pulled down by strict COVID-19 lockdowns in China and prospects of further central bank tightening.

The blue-chip FTSE 100 ended up 0.2% and the domestically oriented FTSE 250 index rose 0.1%.

Defensive sectors such as consumer staples that tend to be less sensitive to the economic climate boosted the FTSE 100 index. Unilever, Reckitt Benckiser and British American Tobacco rose near 1% each.

Capping gains on the resource-heavy FTSE 100, the industrial metals and mining index and energy index dropped 0.6% and 1.7%, respectively, as commodity prices slid on the back of a strong U.S. dollar, China's lockdowns and higher benchmark interest rates globally. [MET/L] [O/R]

Travel and leisure stocks gained 1.1%, with British Airways owner IAG and Wizz Air rising 6.5%, and 4.6%, respectively.

"We have seen oil fall bit below $100 a barrel and that obviously is good news for airlines because a lot of their costs are taken up by fuel. That is partly what you're seeing with IAG," Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown, said.

"Nervousness that was taking hold on financial markets this morning in terms of concerns about fresh COVID outbreaks in China and falling global growth has eased off a little but investors are still pretty sensitive."

Meanwhile, Britain's new prime minister will be announced on Sept. 5, with the first votes to begin eliminating candidates in a crowded and increasingly unpredictable and divisive contest to replace Boris Johnson this week.

Real estate firms Hammerson, British Land and Land Securities fell between 1.8% and 4% after Royal Bank of Canada downgraded their shares, saying higher interest rates, deterioration in credit spreads and recessionary trends put the sector in "uncharted territory".

Among mid-caps, shares of Plus500 climbed 1.2% after the online trading platform forecast its annual revenue and profit ahead of market expectations, benefiting from a surge in market volatility.

(Reporting by Sruthi Shankar and Bansari Mayur Kamdar in Bengaluru; Editing by Sherry Jacob-Phillips, William Maclean)

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting