Economic news

UK's FTSE Climbs as Consumer Earnings Offset Sector Drag

  • FTSE 100 up 0.5%, FTSE ​250 up 0.2%
  • Unilever jumps after lifting annual sales forecast
  • Barclays falls ‌despite beating first-half profit estimates
  • Energy stocks slide as oil prices drop over 2%

July 28 (Reuters) - London's main FTSE indexes edged higher on Tuesday, supported by earnings-driven gains in consumer-focused stocks, including ​Unilever and Man Group, shrugging off pressure from declines in banks and energy ​shares.

The blue-chip FTSE 100 index rose 0.5% to 10,845.71 points ⁠by 0950 GMT, while the mid-cap FTSE 250 climbed 0.2%.

  • Unilever jumped 6.8%, ​putting it on track for its biggest one-day gain in two years, ​after the company raised its annual forecast and delivered its strongest quarterly volume growth in more than a decade, as consumers continued to buy brands such as Vaseline, Dove and Cif despite ​concerns over household budgets.

  • Coats jumped 7.1% to the top of the FTSE ​mid-cap index after the thread maker reported higher first-half profit.

  • Meanwhile, banks led sectoral declines, falling 0.7% ‌after ⁠Barclays slipped 5.1% despite reporting a better-than-expected 17% rise in first-half profit, suggesting investors had already priced in robust results from British banks.

  • Energy stocks also fell 0.6% as oil prices slid more than 2% as hopes for a ​resolution to the U.S.-Iran conflict ​grew.

  • Among individual stocks, ⁠Man Group shares jumped 4.6% to their highest since 2010 after the hedge fund manager posted a better-than-expected 11% ​half-yearly rise in assets under management.

  • Canal+ jumped 6.2% 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.

  • 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.

Reporting by Tharuniyaa Lakshmi in Bengaluru; Editing by Harikrishnan Nair

Source: Reuters


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