UK’s FTSE 100 rose for the third straight session on Wednesday following gains in shares of energy firms and retailers, while a decline in the pound also helped the export-oriented index.
The blue-chip FTSE 100 rose 0.5%, while the mid-cap FTSE 250 added 0.7%.
Sportswear firm JD Sports Fashion jumped 6.9% after its US peer Nike Inc reported better-than-expected results on Tuesday. Retailers added 1.9%.
“What we are seeing in the US and in Europe is that consumers are not yet backing down, though probably a recession is expected and inflation is still high,” said Roberto Rossignoli, portfolio manager at Moneyfarm.
Sterling slipped against the dollar and euro as British public borrowing hit a November record, underscoring the challenges for the UK economy.
FTSE 100 rises after BOJ shock, commodity stocks support
“As the UK economy heads towards a recession, the public purse could suffer a slowdown in tax revenue as businesses and consumers decelerate, which could result in higher public sector borrowing,” said Victoria Scholar, head of investment at interactive investor.
Energy stocks were also among top gainers, adding 1% as heavyweights Shell and BP gained.
As traders enter the last few sessions of 2022, the FTSE 100 has fared better than its peers year-to-date.
The region-wide Eurozone Stoxx 600 and the S&P 500 are down 13% and 20%, respectively, however UK’s blue-chip index is set for losses of 0.1%.
Among stocks, Directa Plus rose as much as 6.7% after the graphene-based product maker signed an exclusive agreement with Pigmentsolution, a European distributor of speciality chemicals and ingredients.
Comments
Comments are closed.