LONDON: London's FTSE 100 equity index ended higher on Tuesday, lifted by gains in consumer staples and energy stocks, although a delay in lifting remaining Covid-19 restrictions in England curbed sentiment across the overall market.
The blue-chip index rose 0.4% to its highest close since February 2020 highs. Dollar-earning consumer staples stocks, including Unilever, Reckitt Benckiser Group, British American Tobacco and Diageo Plc gained between 0.58% and 1.77%, on the weaker pound.
Energy stocks gained 0.32% as oil majors including BP and Royal Dutch Shell gained 0.7% and 1.8% respectively, tracking crude prices.
The domestically focused mid-cap FTSE 250 index fell 0.5%. Prime Minister Boris Johnson pushed back plans to lift most remaining Covid-19 restrictions to July 19, citing the rapid spread of the more infectious Delta variant.
Travel and leisure stocks fell 0.8%, with Flutter Entertainment Plc and Entain Plc among the top decliners.
The FTSE 100 and the FTSE 250 have gained more than 11% this year, but they have oscillated in a narrow range since mid-April on worries that a Covid-19 resurgence might crimp the recovery, and rapid economic growth could lead to higher inflation.
Among stocks, Boohoo Group Plc gained 1.07% after the British online fashion retailer reported a 32% rise in sales in its latest quarter benefiting from rising demand as lockdown restrictions eased.
However, Non-Standard Finance slipped 17.2% as the subprime lender plans to raise around 80 million pounds ($112.98 million) in the third quarter potentially through a share sale.
There was good news however on the jobs front, as the number of employees on British company payrolls surged by a record 197,000 in May as Covid-19 restrictions eased, tax data showed.
Meanwhile global markets including London are focused on the US Federal Reserve meeting for clues to a sooner-than-expected tapering of its monetary policy, prompted by rising inflation.
Comments
Comments are closed for this article.