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FTSE 100 rebounds on energy, earnings lift
Global Banking & Finance Review®
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By Johann M Cherian and Sruthi Shankar
(Reuters) -London’s blue-chip stock index bounced off two-week closing lows on Thursday, as energy stocks received a lift from rising crude prices and investor sentiment steadied ahead of an annual conference of world central bankers.
The FTSE 100 index gained 0.6% after three consecutive sessions of losses.
Oil majors Shell and BP rose over 1% each, as crude prices were supported by the prospect of tighter supplies amid disruptions to Russian exports and the partial shutdown of a U.S. refinery. [O/R]
Ireland’s CRH rose 2.7% to the top of FTSE 100 after the building materials firm reported strong first-half results.
The global sentiment improved on Thursday after a bout of selling this week on concerns about a European recession as well as hawkish signals from the U.S. Federal Reserve policymakers.
“We are definitely entering a period of weaker economic activity, but the evidence from companies that have reported so far this year does not suggest that it’s really hitting them,” said Jamie Ross, fund manager of Henderson EuroTrust.
“When I look ahead, I do expect the weakness in economic data to start to translate into weakness in earnings. Areas like industrials, autos and semiconductors, we’d expect to see some pressure.”
Data showed British car production rose for a third consecutive month in July but remained 46.4% below pre-pandemic levels as the industry struggles with supply chain shortages, structural changes and weak exports.
Investors are bracing for hawkish signals from Fed Chair Jerome Powell when he speaks at the Jackson Hole symposium on Friday.
The domestically exposed FTSE 250 index inched up after sinking to a more than one-month low in the previous session.
Hays Plc rose 3.3% after the recruitment agency reported a 128% jump in annual profit due to a rise in demand for new staff as employers rush to fill vacancies.
Harbour Energy rose 10%, pulling the midcap index higher with it after the UK North Sea’s biggest oil and gas producer increased a share buyback programme by 50%.
(Reporting by Johann M Cherian and Sruthi Shankar in Bengaluru; Editing by Subhranshu Sahu and Krishna Chandra Eluri)
The FTSE 100 is a stock market index that represents the 100 largest companies listed on the London Stock Exchange, measured by market capitalization.
Energy stocks are shares in companies that are involved in the production or distribution of energy, including oil, gas, and renewable energy sources.
Investor sentiment refers to the overall attitude of investors towards a particular market or asset, often influenced by news, economic indicators, and market trends.
A central bank is a national institution that manages a country's currency, money supply, and interest rates, and oversees the banking system.
Crude oil is a natural, unrefined petroleum product composed of hydrocarbon deposits and other organic materials, used as a primary energy source.
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