- Blue-chip FTSE 100 set to snap 7-day losing streak
- Wood Group raises annual profit outlook, shares rise
- Lower oil prices hurt energy sector index
- FTSE 100 up 0.3%, FTSE 250 adds 0.6%
Aug 22 (Reuters) - The blue-chip FTSE 100 index lifted off six-week lows on Tuesday, powered by gains in beaten-down cyclical sectors, while shares of John Wood Group advanced after raising its annual profit outlook.
The FTSE 100 was up 0.3%, while the midcap FTSE 250 index gained 0.6%. The benchmark index could snap a seven-day losing streak, if gains last till the end of the trading session.
Gains were driven by cyclical sectors, including construction and materials, precious metal miners and defence.
John Wood Group climbed 4.2% after the oilfield services and engineering firm raised its expectations for annual adjusted core profit.
Meanwhile, the defensive personal care sector dipped 0.2% in the early hours, indicating a risk-on move.
Oil stocks fell 0.4% tracking declines in crude prices and capped gains on the FTSE 100 index. The blue-chip index lagged the broader Europe STOXX 600, which added 0.8%.
"It is a relatively light data calendar this week, meaning that there are fewer risks to any rally for a few days, certainly until Friday when Powell is scheduled to speak at Jackson Hole," said Stuart Cole, chief macro economist at Equiti Capital.
"The market may simply be taking advantage of these calmer waters."
Focus will now shift to the Jackson Hole Symposium due later in the week, where major central bankers, including Federal Reserve Chair Jerome Powell, will share their views on the trajectory of global monetary policy.
Data on Tuesday showed sales growth at British supermarkets slowed in August due to a hit to demand from unseasonably wet weather. Shares of both Marks and Spencer and Sainsbury fell about 0.2%.
London stocks have underperformed Europe so far this year amid fading optimism over China's post-reopening recovery and its impact on commodity prices, while the Bank of England's tough stance on inflation has also hurt British stocks.
Reporting by Shreyashi Sanyal in Bengaluru; Editing by Sohini Goswami and Eileen Soreng
Source: Reuters