Britain's FTSE indexes climb as consumer earnings boost offsets banks, energy drag
FTSE Indexes Rise Amid Mixed Sector Performance
July 28 (Reuters) - London's main FTSE indexes gained on Tuesday, supported by earnings-driven gains in consumer-focused stocks, including Unilever and Man Group, that helped them shrug off pressure from declines in banks and energy shares.
The blue-chip FTSE 100 index rose 0.90% to 10,878.85 points, while the mid-cap FTSE 250 climbed 0.46%.
Consumer-Focused Stocks Lead Gains
Unilever and Coats Post Strong Results
• Unilever jumped 8.58% for its biggest one-day gain in four years, after the company raised its annual forecast and delivered its strongest quarterly volume growth in more than a decade.
• Coats jumped 9.6% to the top of the FTSE mid-cap index after the thread maker reported higher first-half profit.
Sectoral Declines: Energy and Banks
Energy Sector Under Pressure
• Meanwhile, energy stocks fell 1.43%, leading sectoral declines as oil prices slid on hopes for a resolution to the U.S.-Iran conflict. [O/R]
Banks Experience Losses
• Banks also dropped 1.37%, with Barclays slipping 4.79% despite reporting a better-than-expected rise in first-half profit, suggesting investors had already priced in robust results from British banks.
Other Notable Movers
Man Group and Canal+ Stand Out
• Among individual stocks, Man Group shares hit their highest since 2010 earlier in the session, before paring some gains, as the hedge fund manager posted a better-than-expected half-yearly rise in assets under management.
• Canal+ jumped 9.75% after the French pay-TV and media group reported a slight rise in half-year revenue, as growth in its legacy businesses offset a narrowing decline at MultiChoice, the African broadcaster it acquired last year.
Market Outlook and Policy Watch
Central Bank Policy in Focus
• Policy statements from the U.S. Federal Reserve and the Bank of England will be watched later this week for hints on the central banks' next likely moves.
Expert Commentary
• "I think the MPC (monetary policy committee) will be holding rates for an extended time. (But) the rate outlook depends very heavily on the oil shock," Pantheon Macroeconomics' chief UK economist Rob Wood said at a webinar.
Reporting Credits
(Reporting by Tharuniyaa Lakshmi and Niket Nishant in Bengaluru; Editing by Harikrishnan Nair and Hugh Lawson)
