Investing
FTSE 100 rebounds as Reckitt and oil stocks offset budget concerns
Published by Jessica Weisman-Pitts
Posted on November 1, 2024
2 min readLast updated: January 29, 2026
Global Banking & Finance Review®
Company
Published by Jessica Weisman-Pitts
Posted on November 1, 2024
2 min readLast updated: January 29, 2026
(Reuters) – The UK’s FTSE 100 edged up on Friday from near three-month lows touched in the prior session, as gains in Reckitt Benckiser and
(Reuters) – The UK’s FTSE 100 edged up on Friday from near three-month lows touched in the prior session, as gains in Reckitt Benckiser and oil stocks offset concerns about inflation sparked by Britain’s budget.
The blue-chip FTSE 100 rose 0.6% by 0954 GMT, with consumer goods company Reckitt surging 9% after company, along with U.S.-based Abbott Labs, was cleared of liability in a preterm formula case.
Oil stocks such as Shell and BP rose more than 1% each as crude prices climbed about 3% following reports Iran was preparing a retaliatory strike on Israel from Iraq in the coming days. [O/R]
The midcap FTSE 250 index edged up 0.2%, but hovered near a three-month low trough touched on Thursday as Britain’s finance minister, Rachel Reeves, faced criticism after her first budget was heavy on spending, tax increases, and borrowing but light on economic growth.
Both indexes were heading for weekly declines due to fears that Labour’s spending plans could spur inflation, leading traders to reduce expectations of rate cuts next year.
However, investors anticipate a 25-basis-point rate cut from the Bank of England next week.
An S&P Global survey showed British factory activity contracted slightly last month for the first time since April, due to fewer new orders.
Focus is on U.S. payrolls data later in the day for clues on the size of rate cuts from the Federal Reserve, which is also set to meet next week.
Among other stocks, Tesco rose 1.5% after Britain’s biggest supermarket group said that it intended to return 700 million pounds ($902.51 million) to shareholders through an incremental share buyback.
Boohoo increased by 3% after the online fashion retailer appointed Dan Finley as its new CEO, effective immediately, marking a setback for top investor Frasers, which had attempted to appoint its controlling shareholder Mike Ashley to the role.
(Reporting by Sruthi Shankar in Bengaluru; Editing by Tasim Zahid)
The FTSE 100 is a stock market index that represents the 100 largest companies listed on the London Stock Exchange, based on market capitalization.
Inflation is the rate at which the general level of prices for goods and services rises, eroding purchasing power.
Oil stocks are shares in companies involved in the exploration, extraction, refining, and distribution of oil and gas.
A budget is a financial plan that outlines expected revenues and expenditures over a specific period, helping manage finances.
A rate cut refers to a reduction in the interest rate set by a central bank, aimed at stimulating economic activity by making borrowing cheaper.
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