FTSE 100 lifted by banking, commodities shareswritten by Bella Palmer
The FTSE 100 and the more domestically focused mid-FTSE 250 were up 0.3% each
UK’s benchmark stock index was lifted by banking shares on Thursday, while commodities climbed as global recession fears and an energy standoff between Europe and Russia stoked fears of tight supply worldwide.
The FTSE 100 and the more domestically focused mid-FTSE 250 were up 0.3% each, as of 0813 GMT.
The economy-sensitive banking sector advanced 0.9%, after dropping more than 2% in the previous session.
If we look at these financial stocks, they had been under pressure since the middle of August, the bounce we’re seeing is from an oversold position for these stocks, said David Jones, chief market strategist at Capital.com.
Oil majors BP and Shell gained 1% and 0.7%, respectively, as crude prices drew support from Russian President Vladimir Putin’s threat to halt the country’s oil and gas exports if price caps are imposed by European buyers.
The mining sector added 0.4%, tracking firm copper prices on concerns of potential disruptions in major producer-countries.
Meanwhile, the pan-European STOXX 600 edged 0.1% higher, with focus squarely on a rate decision by the European Central Bank expected around 1215 GMT.
The ECB’s choice will be between a 50 and 75 basis point increase in the zero-percent deposit rate, with trader expectations leaning towards a bigger increase but not with full conviction.
Associated British Foods declined 7.6% after the company flagged lower profit for next year, as its Primark fashion business struggled with rising costs and inflation.
It has been an absolute terrible performer this year, said Jones.
He said: Investors are worried that the less well-off in the society are going to be hit harder if the cost-of-living crisis continues, that does show the impact that the ongoing crisis is going to have on the retail sector.
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